Amends title VI (Flexibility and Accountability) of the Elementary and Secondary Education Act of 1965 (ESEA) to create a new Part D: Promoting Youth Financial Literacy.
Allows the Secretary of Education to provide grants to states to: (1) assist local educational agencies and public schools provide financial education programs to students in kindergarten through grade 12; and (2) implement financial education professional development programs for teachers and administrators. Requires the competitive award of a specified amount of the grant funds each fiscal year, with the remainder provided to each state on the basis of its share of students in kindergarten through grade 12.
Directs the Secretary to make a grant to or contract with an institution of higher education or nonprofit organization that has substantial financial education experience to establish and operate a national clearinghouse of instructional materials and information on model financial education programs and best practices.
Amends title V of the ESEA to direct the Secretary to set aside 2% of the funds appropriated for the Fund for the Improvement of Education program each fiscal year for financial literacy activities under such program.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2012 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2012
To promote youth financial education.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 2009
Mr. Payne introduced the following bill; which was referred to the
Committee on Education and Labor
_______________________________________________________________________
A BILL
To promote youth financial education.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PROMOTING YOUTH FINANCIAL LITERACY.
Title IV of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7101 et seq.) is amended by adding at the end the following:
``PART D--PROMOTING YOUTH FINANCIAL LITERACY
``SEC. 4401. SHORT TITLE AND FINDINGS.
``(a) Short Title.--This part may be cited as the `Youth Financial
Education Act'.
``(b) Findings.--Congress finds the following:
``(1) In order to succeed in our dynamic American economy,
young people must obtain the skills, knowledge, and experience
necessary to manage their personal finances and obtain general
financial literacy. All young adults should have the
educational tools necessary to make informed financial
decisions.
``(2) Despite the critical importance of financial literacy
to young people, the average student who graduates from high
school lacks basic skills in the management of personal
financial affairs. A nationwide survey conducted in 2006 by the
Jump$tart Coalition for Personal Financial Literacy examined
the financial knowledge of 5,775 12th graders. On average,
survey respondents answered only 52 percent of the questions
correctly. This figure is up only slightly from the 50 percent
average score in 2002.
``(3) An evaluation by the National Endowment for Financial
Education High School Financial Planning Program undertaken
jointly with the United States Department of Agriculture
Cooperative State Research, Education, and Extension Service
demonstrates that as little as 10 hours of classroom
instruction can impart substantial knowledge and affect
significant change in how teens handle their money.
``(4) State educational leaders have recognized the
importance of providing a basic financial education to students
in kindergarten through grade 12 by integrating financial
education into State educational standards, but by 2004, only 7
States required students to complete a course that covered
personal finance before graduating from high school.
``(5) Teacher training and professional development are
critical to achieving youth financial literacy. Teachers should
be given the tools they need to educate our Nation's youth on
personal finance and economics.
``(6) Personal financial education helps prepare students
for the workforce and for financial independence by developing
their sense of individual responsibility, improving their life
skills, and providing them with a thorough understanding of
consumer economics that will benefit them for their entire
lives.
``(7) Financial education integrates instruction in
valuable life skills with instruction in economics, including
income and taxes, money management, investment and spending,
and the importance of personal savings.
``(8) The consumers and investors of tomorrow are in our
schools today. The teaching of personal finance should be
encouraged at all levels of our Nation's educational system,
from kindergarten through grade 12.
``(9) Despite worrisome data about the lack of basic
financial literacy among our Nation's high school students, the
Department of Education obligates less than 1 percent of its
educational improvement funds toward financial education
efforts.
``SEC. 4402. STATE GRANT PROGRAM.
``(a) Program Authorized.--The Secretary is authorized to provide
grants to State educational agencies to develop and integrate youth
financial education programs for students in elementary schools and
secondary schools.
``(b) State Plan.--To be eligible to receive a grant under this
section, a State educational agency shall submit an application that
includes a State plan that is approved by the Secretary.
``(c) Allocation of Funds.--
``(1) Allocation factors.--Except as otherwise provided in
paragraphs (2) through (4), the Secretary shall allocate the
amounts made available to carry out this section pursuant to
subsection (a) as follows:
``(A) The first $100,000,000 for a fiscal year
shall be allocated on a competitive basis based solely
upon the merit of the applications submitted.
``(B) Any remaining amounts shall be allocated to
each State according to the relative populations in all
the States of students in kindergarten through grade
12, as determined by the Secretary based on the most
recent satisfactory data.
``(2) Minimum allocation.--Subject to the availability of
appropriations and notwithstanding paragraph (1), a State that
has submitted a plan under subsection (b) that is approved by
the Secretary shall be allocated an amount that is not less
than $500,000 for a fiscal year.
``(3) Reallocation.--In any fiscal year an allocation under
this subsection--
``(A) for a State that has not submitted a plan
under subsection (b); or
``(B) for a State whose plan submitted under
subsection (b) has been disapproved by the Secretary;
shall be reallocated to States with approved plans under this
section in accordance with paragraph (1).
``(4) Funding threshold.--Until appropriations for programs
under this Act exceed $30,000,000, the Secretary shall conduct
an annual competitive application process with funding
distributed among the States based solely upon the merit of the
applications submitted.
``(d) Use of Grant Funds.--
``(1) Required uses.--A grant made to a State educational
agency under this part shall be used--
``(A) to provide funds to local educational
agencies and public schools to carry out financial
education programs for students in kindergarten through
grade 12 based on the concept of achieving financial
literacy through the teaching of personal financial
management skills and the basic principles involved
with earning, spending, saving, investing, credit, and
insurance;
``(B) to carry out professional development
programs to prepare teachers and administrators for
financial education; and
``(C) to monitor and evaluate programs supported
under subparagraphs (A) and (B).
``(2) Limitation on administrative costs.--A State
educational agency receiving a grant under subsection (a) may
use not more than 4 percent of the total amount of the grant in
each fiscal year for the administrative costs of carrying out
this section.
``(e) Applications by States.--In order to receive an allotment
under this section for any fiscal year, a State shall submit to the
Secretary, at such time as the Secretary may require, an application
that--
``(1) designates the State educational agency as the agency
responsible for the administration and supervision of programs
assisted under this part;
``(2) describes how the State educational agency will use
funds received under this part, including funds reserved for
State-level activities;
``(3) describes how the programs assisted under this part
will be coordinated with other relevant Federal, State,
regional, and local programs;
``(4) contains an assurance that the State educational
agency will make awards under this part only to eligible
entities that propose to give priority to serving--
``(A) low-income populations; and
``(B) populations that are above the poverty level
but are low income working populations;
``(5) describes the procedures and criteria the State
educational agency will use for reviewing applications and
awarding funds to eligible entities on a competitive basis;
``(6) describes how the State educational agency will
ensure that awards made under this part are of sufficient size
and scope to support high-quality, effective programs that are
consistent with the purpose of this part;
``(7) describes the steps the State educational agency will
take to ensure that programs implement effective strategies,
including providing ongoing technical assistance and training,
evaluation, and dissemination of promising practices;
``(8) provides an assurance that the application was
developed in consultation and coordination with appropriate
State officials, including the chief State school officer,
representatives of teachers, the business community, and
community-based organizations; and
``(9) describes how the State educational agency will
evaluate the effectiveness of programs and activities carried
out under this part, which shall include, at a minimum--
``(A) a description of the performance indicators
and performance measures that will be used to evaluate
programs and activities; and
``(B) public dissemination of the evaluations of
programs and activities carried out under this part.
``(f) Local Competitive Grant Program.--
``(1) In general.--A State that receives funds under this
part for a fiscal year shall provide the amount made available
under this section to eligible entities in accordance with this
part.
``(2) Application.--
``(A) In general.--To be eligible to receive an
award under this part, an eligible entity shall submit
an application to the State educational agency at such
time, in such manner, and including such information as
the State educational agency may reasonably require.
``(B) Contents.--Each application submitted under
subparagraph (A) shall include--
``(i) a description of how the eligible
entity will use funds received under this part;
``(ii) an identification of Federal, State,
and local programs that will be combined or
coordinated with the proposed program to make
the most effective use of public resources;
``(iii) a description of the partnership
between a local educational agency, a
community-based organization, and another
public entity or private entity, if
appropriate;
``(iv) an evaluation of the community needs
and available resources and a description of
how the program proposed to be carried out in
the center will address those needs;
``(v) a demonstration that the eligible
entity has experience, or promise of success,
in providing educational and related activities
that will complement and enhance positive youth
development of the students; and
``(vi) if the eligible entity plans to use
volunteers, a description of how the eligible
entity will encourage and use individuals with
appropriate financial literacy qualifications
to serve as the volunteers; and
``(vii) such other information and
assurances as the State educational agency may
reasonably require.
``(3) Amount of awards.--A grant awarded under this part
may not be made in an amount that is less than $50,000.
``(4) Priority.--In awarding grants under this part, a
State educational agency shall give priority to applications
proposing to give priority to serving--
``(A) low-income populations; and
``(B) populations that are above the poverty level
but are low income working populations.
``(g) Report to the Secretary.--Each State educational agency
receiving a grant under this section shall transmit a report to the
Secretary with respect to each fiscal year for which a grant is
received. The report shall describe the programs supported by the grant
and the results of the State educational agency's monitoring and
evaluation of such programs.
``SEC. 4403. CLEARINGHOUSE.
``(a) Authority.--Subject to the availability of appropriations,
the Secretary shall make a grant to, or execute a contract with, an
eligible entity with substantial experience in the field of financial
education to establish, operate, and maintain a national clearinghouse
(in this part referred to as the `Clearinghouse') for instructional
materials and information regarding model financial education programs
and best practices.
``(b) Eligible Entity.--In this section, the term `eligible entity'
means--
``(1) an institution of higher education; or
``(2) a national nonprofit organization.
``(c) Application.--An eligible entity desiring to establish,
operate, and maintain the Clearinghouse shall submit an application to
the Secretary at such time, in such manner, and accompanied by such
information, as the Secretary may reasonably require.
``(d) Basis and Term.--The Secretary shall make the grant or
contract authorized under subsection (a) on a competitive, merit basis
for a term of 5 years.
``(e) Use of Funds.--The Clearinghouse shall use the funds provided
under a grant or contract made under subsection (a)--
``(1) to maintain a repository of instructional materials
and related information regarding financial education programs
for elementary schools and secondary schools, including
kindergartens, for use by States, localities, and the general
public, that take into account limited-English populations and
cultural differences and sensitivities among various
populations;
``(2) to disseminate to States, localities, and the general
public, through electronic and other means, instructional
materials and related information regarding financial education
programs for elementary schools and secondary schools,
including kindergartens; and
``(3) to the extent that resources allow, to provide
technical assistance to States, localities, and the general
public on the design, establishment, and implementation of
financial education programs for elementary schools and
secondary schools, including kindergartens.
``(f) Consultation.--The administrator of the eligible entity
selected to establish and operate the Clearinghouse shall consult with
community-based organizations, educational institutions, and financial
organizations, and with appropriate elements of the Federal Government,
if appropriate.
``(g) Submission to Clearinghouse.--Each Federal agency or
department that develops financial education programs and instructional
materials for such programs shall submit to the Clearinghouse
information on the programs and copies of the materials.
``(h) Application of Copyright Laws.--In carrying out this section
the Clearinghouse shall comply with the provisions of title 17 of the
United States Code.
``SEC. 4404. EVALUATION AND REPORT.
``(a) Performance Measures.--The Secretary shall develop measures
to evaluate the performance of programs assisted under sections 4402
and 4403.
``(b) Evaluation According to Performance Measures.--Applying the
performance measures developed under subsection (a), the Secretary
shall evaluate programs assisted under sections 4402 and 4403--
``(1) to judge their performance and effectiveness;
``(2) to identify which of the programs represent the best
practices of entities developing financial education programs
for students in kindergarten through grade 12;
``(3) to identify which of the programs may be replicated
and used to provide technical assistance to States, localities,
and the general public; and
``(4) to assess whether educational practices described
herein increased the aptitude and ability of students to manage
financial resources including credit cards, insurance, savings
accounts and student loans.
``(c) Report.--For each fiscal year for which there are
appropriations under section 4407(a), the Secretary shall transmit a
report to Congress describing the status of the implementation of this
part. The report shall include the results of the evaluation required
under subsection (b) and a description of the programs supported under
section 4402.
``SEC. 4405. DEFINITIONS.
``In this part:
``(1) Financial education.--The term `financial education'
means educational activities and experiences, planned and
supervised by qualified teachers, that enable students to
understand basic economic and consumer principles, acquire the
skills and knowledge necessary to manage personal and household
finances, and develop a range of competencies that will enable
the students to become responsible consumers in today's complex
economy.
``(2) Qualified teacher.--The term `qualified teacher'
means a teacher who holds a valid teaching certification or is
considered to be qualified by the State educational agency in
the State in which the teacher works.
``(3) State.--The term `State' includes the District of
Columbia, the Commonwealth of Puerto Rico, and any other
territories or possessions of the United States.
``SEC. 4406. PROHIBITION.
``Nothing in this part shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or control a
State, local educational agency, or school's specific instructional
content, curriculum, or program of instruction, as a condition of
eligibility to receive funds under this part.
``SEC. 4407. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization.--For the purposes of carrying out this part,
there are authorized to be appropriated, for each of fiscal years 2010
through 2014, the following:
``(1) Grant program.--$100,000,000 to carry out section
4402.
``(2) Clearinghouse.--$1,500,000 to carry out section 4403.
``(b) Limitation on Funds for Secretary Evaluation.--The Secretary
may use not more than $200,000 from the amounts appropriated under
subsection (a) for each fiscal year to carry out subsections (a) and
(b) of section 4404.
``(c) Limitation on Administrative Costs.--Except as necessary to
carry out subsections (a) and (b) of section 4404 using amounts
described in subsection (b) of this section, the Secretary shall not
use any portion of the amounts appropriated under subsection (a) for
the costs of administering this part.''.
SEC. 2. FUNDING SETASIDE FOR FINANCIAL LITERACY ACTIVITIES.
Part D of title V of the Elementary and Secondary Education Act of
1965 is amended by inserting after section 5401 (20 U.S.C. 7241) the
following:
``SEC. 5402. FUNDING SETASIDE FOR FINANCIAL LITERACY ACTIVITIES.
``Notwithstanding any other provision of this title, the Secretary
shall set aside two percent of the funds appropriated to carry out this
part for each fiscal year. The funds set aside shall be used to support
financial literacy activities under subpart 13.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Labor.
Referred to the Subcommittee on Early Childhood, Elementary, and Secondary Education.
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