[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2821 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 2821
To establish a grant program in the Bureau of Consumer Financial
Protection to fund the establishment of centers of excellence to
support research, development and planning, implementation, and
evaluation of effective programs in financial literacy education for
young people and families ages 8 through 24 years old, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 25, 2023
Mr. Carson (for himself, Ms. Lee of California, Ms. Barragan, Mrs.
Beatty, Mr. Blumenauer, Ms. Brown, Mr. Carbajal, Mr. Carter of
Louisiana, Mr. Case, Mr. Garcia of Illinois, Ms. Garcia of Texas, Mr.
Cohen, Ms. Crockett, Mr. Davis of Illinois, Ms. Dean of Pennsylvania,
Mr. DeSaulnier, Mr. Espaillat, Mr. Evans, Ms. Wilson of Florida, Mrs.
Hayes, Ms. Norton, Mr. Keating, Ms. Kuster, Mr. McGovern, Ms. Omar, Mr.
Smith of Washington, Ms. Jacobs, Mr. Johnson of Georgia, Mr. Sablan,
Ms. Scholten, Mr. Soto, Mr. Thompson of Mississippi, Ms. Titus, Ms.
Tlaib, Ms. Tokuda, Mr. Torres of New York, Mr. Trone, Mr. Veasey, and
Mrs. Watson Coleman) introduced the following bill; which was referred
to the Committee on Financial Services, and in addition to the
Committee on Education and the Workforce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To establish a grant program in the Bureau of Consumer Financial
Protection to fund the establishment of centers of excellence to
support research, development and planning, implementation, and
evaluation of effective programs in financial literacy education for
young people and families ages 8 through 24 years old, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Young Americans Financial Literacy
Act''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) That 88 percent of Americans believe finance education
should be taught in schools and 92 percent of K-12 teachers
believe that financial education should be taught in school,
but only 12 percent of teachers actually teach the subject.
(2) According to a 2020 survey, less than half of States
require high school students to take a course on personal
finance, and less than 17 percent of high schoolers were
required to take a one semester personal finance course.
(3) For the fourth year in a row, more than one-third of
surveyed consumers gave themselves a ``B'' when grading their
own level of basic financial literacy. Less than one-fifth of
Americans gave themselves an ``A''. Most adults feel that their
financial literacy skills are inadequate, yet they do not rely
on anyone else to handle their finances; they feel it is
important to know more but have received no financial
education.
(4) The sudden disruptions caused by the spread of COVID-19
are presenting economic challenges with growing consequences.
While some factors affecting financial well-being are beyond
individual control, financial literacy can help people better
manage their finances through times of hardship.
(5) It is necessary to respond immediately to the pressing
needs of individuals faced with the loss of their financial
stability; however increased attention must also be paid to
financial literacy education reform and long-term solutions to
prevent future personal financial disasters.
(6) There is an urgent need to respond to the COVID-19
economic recovery with research-based financial literacy
education programs to reach individuals at all ages and
socioeconomic levels, particularly those facing unique and
challenging financial situations, such as high school graduates
entering the workforce, soon-to-be and recent college
graduates, young families, and the unique needs of military
personnel and their families.
(7) High school and college students who are exposed to
cumulative financial education show an increase in financial
knowledge, which in turn drives increasingly responsible
behavior as they become young adults.
(8) The majority (52 percent) of young adults between the
ages of 23-28 consider ``making better choices about managing
money'', the single most important issue for individual
Americans to act on today.
(9) According to the Government Accountability Office,
giving Americans the information they need to make effective
financial decisions can be key to their well-being and to the
country's economic health. The current pandemic, in which 88
percent of Americans say is causing stress on their personal
finances, underscores the need to improve individuals'
financial literacy and empower all Americans to make informed
financial decisions. This is especially true for young people
as they are earning their first paychecks, securing student
aid, and establishing their financial independence. Therefore,
focusing economic education and financial literacy efforts and
best practices for young people between the ages of 8-24 is of
utmost importance.
SEC. 3. AUTHORIZATION FOR FUNDING THE ESTABLISHMENT OF CENTERS OF
EXCELLENCE IN FINANCIAL LITERACY EDUCATION.
(a) In General.--The Consumer Financial Protection Act of 2010 (12
U.S.C. 5481 et seq.) is amended--
(1) by redesignating section 1037 as section 1038; and
(2) by inserting after section 1036 the following:
``SEC. 1037. AUTHORIZATION FOR FUNDING THE ESTABLISHMENT OF CENTERS OF
EXCELLENCE IN FINANCIAL LITERACY EDUCATION.
``(a) In General.--The Director of the Bureau, in consultation with
the Financial Literacy and Education Commission established under the
Financial Literacy and Education Improvement Act, shall make
competitive grants to and enter into agreements with eligible
institutions to establish centers of excellence to support research,
development and planning, implementation, and evaluation of effective
programs in financial literacy education for young people and families
ages 8 through 24 years old.
``(b) Authorized Activities.--Activities authorized to be funded by
grants made under subsection (a) shall include the following:
``(1) Developing and implementing comprehensive research
based financial literacy education programs for young people--
``(A) based on a set of core competencies and
concepts established by the Director, including goal
setting, planning, budgeting, managing money or
transactions, tools and structures, behaviors,
consequences, both long- and short-term savings,
managing debt and earnings; and
``(B) which can be incorporated into educational
settings through existing academic content areas,
including materials that appropriately serve various
segments of at-risk populations, particularly minority
and disadvantaged individuals.
``(2) Designing instructional materials using evidence-
based content for young families and conducting related
outreach activities to address unique life situations and
financial pitfalls, including bankruptcy, foreclosure, credit
card misuse, and predatory lending.
``(3) Developing and supporting the delivery of
professional development programs in financial literacy
education to assure competence and accountability in the
delivery system.
``(4) Improving access to, and dissemination of, financial
literacy information for young people and families.
``(5) Reducing student loan default rates by developing
programs to help individuals better understand how to manage
educational debt through sustained educational programs for
college students.
``(6) Conducting ongoing research and evaluation of
financial literacy education programs to assure learning of
defined skills and knowledge, and retention of learning.
``(7) Developing research-based assessment and
accountability of the appropriate applications of learning over
short and long terms to measure effectiveness of authorized
activities.
``(c) Priority for Certain Applications.--The Director shall give a
priority to applications that--
``(1) provide clear definitions of `financial literacy' and
`financially literate' to clarify educational outcomes;
``(2) establish parameters for identifying the types of
programs that most effectively reach young people and families
in unique life situations and financial pitfalls, including
bankruptcy, foreclosure, credit card misuse, and predatory
lending;
``(3) include content that is appropriate to age and
socioeconomic levels;
``(4) develop programs based on educational standards,
definitions, and research;
``(5) include individual goals of financial independence
and stability;
``(6) establish professional development and delivery
systems using evidence-based practices;
``(7) address the needs of one or more at-risk populations;
``(8) incorporate sensitivities to specific cultural,
linguistic, or demographic characteristics;
``(9) enhance opportunities for asset building, such as
increasing savings for lower income households and investments
into the stock, bond, and real estate markets;
``(10) include an evaluation component to ensure the work's
effectiveness in increasing financial literacy or consumer
access to appropriate financial products or services, or that
the provider has evidence of such effectiveness;
``(11) promise future replication or can be sustained
beyond the program period; and
``(12) will make effectiveness data (if any) that is
generated from the work available to others in the financial
education community.
``(d) Application and Evaluation Standards and Procedures;
Distribution Criteria.--The Director shall establish application and
evaluation standards and procedures, distribution criteria, and such
other forms, standards, definitions, and procedures as the Director
determines to be appropriate.
``(e) Content Delivery.--An eligible institution receiving a grant
under this section shall--
``(1) ensure that content is delivered in an accessible way
to young people, through traditional educational methods and
digital methods, including over appropriate social media
platforms; and
``(2) to the extent content is delivered through a website,
ensure that the website is user friendly, visually appealing,
and doesn't bombard users with dense content that is difficult
to comprehend.
``(f) Grant Amounts.--
``(1) In general.--The aggregate amount of grants made
under this section during any fiscal year--
``(A) shall be at least $27,500,000; and
``(B) may not exceed $55,000,000.
``(2) Termination.--No grants may be made under this
section after the end of fiscal year 2025.
``(g) Report to Congress.--The Director shall issue an annual
report to Congress containing--
``(1) a list of grant recipients under this section,
including the amount of such grant; and
``(2) for each grant recipient, a description of the
specific populations being served by such grant.
``(h) Definitions.--For purposes of this section the following
definitions shall apply:
``(1) Eligible institution.--The term `eligible
institution' means a partnership of two or more of the
following:
``(A) An institution of higher education.
``(B) A State or local government agency which
specializes in financial education programs.
``(C) A nonprofit agency, organization, or
association.
``(D) A financial institution.
``(E) A small organization that is partnering with,
but is not itself, a person described under
subparagraph (A) through (D).
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given such
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).''.
(b) Clerical Amendment.--The table of contents under section 1(b)
of the Dodd-Frank Wall Street Reform and Consumer Protection Act is
amended by striking the item relating to section 1037 and inserting the
following:
``Sec. 1037. Authorization for funding the establishment of centers of
excellence in financial literacy education.
``Sec. 1038. Effective date.''.
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