H.R. 486

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 486 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 486

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

January 16, 2025

Mr. Carson (for himself, Mr. Amo, Ms. Barragan, Ms. Brown, Mr. Carter 
of Louisiana, Mr. Case, Mr. Casten, Mr. Cohen, Ms. Dean of 
Pennsylvania, Mr. Espaillat, Mr. Evans of Pennsylvania, Mrs. Hayes, Ms. 
Norton, Mr. Johnson of Georgia, Mr. Magaziner, Mr. McGovern, Mrs. 
McIver, Mrs. Ramirez, Ms. Sanchez, Ms. Scholten, Mr. Soto, Mr. 
Thanedar, Ms. Titus, and Mr. Torres of New York) introduced the 
following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on Education and 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 financial 
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 
the 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 2029.
``(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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