[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 923 Introduced in Senate (IS)]






109th CONGRESS
  1st Session
                                 S. 923

  To amend part A of title IV of the Social Security Act to require a 
State to promote financial education under the Temporary Assistance for 
Needy Families (TANF) Program and to allow financial education to count 
                 as a work activity under that program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2005

 Mr. Corzine (for himself, Mr. Akaka, Ms. Stabenow, Mr. Lautenberg, and 
  Mr. Obama) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend part A of title IV of the Social Security Act to require a 
State to promote financial education under the Temporary Assistance for 
Needy Families (TANF) Program and to allow financial education to count 
                 as a work activity under that program.

    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 ``TANF Financial Education Promotion 
Act of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Most recipients of assistance under the Temporary 
        Assistance for Needy Families (TANF) Program established under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.) and individuals moving toward self-sufficiency operate 
        outside the financial mainstream, paying high costs to handle 
        their finances and saving little for emergencies or the future.
            (2) Currently, personal debt levels and bankruptcy filing 
        rates are high and savings rates are at their lowest levels in 
        70 years. The inability of many households to budget, save, and 
        invest prevents them from laying the foundation for a secure 
        financial future.
            (3) Financial planning can help families meet near-term 
        obligations and maximize their longer-term well being, 
        especially valuable for populations that have traditionally 
        been underserved by our financial system.
            (4) Financial education can give individuals the necessary 
        financial tools to create household budgets, initiate savings 
        plans, and acquire assets.
            (5) Financial education can prevent vulnerable customers 
        from becoming entangled in financially devastating credit 
        arrangements.
            (6) Financial education that addresses abusive lending 
        practices targeted at specific neighborhoods or vulnerable 
        segments of the population can prevent unaffordable payments, 
        equity stripping, and foreclosure.
            (7) Financial education speaks to the broader purpose of 
        the TANF Program to equip individuals with the tools to succeed 
        and support themselves and their families in self-sufficiency.

SEC. 3. REQUIREMENT TO PROMOTE FINANCIAL EDUCATION UNDER TANF.

    (a) State Plan.--Section 402(a)(1)(A) of the Social Security Act 
(42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the following:
                            ``(vii) Establish goals and take action to 
                        promote financial education, as defined in 
                        section 407(j), among parents and caretakers 
                        receiving assistance under the program through 
                        collaboration with community-based 
                        organizations, financial institutions, and the 
                        Cooperative State Research, Education, and 
                        Extension Service of the Department of 
                        Agriculture.''.
    (b) Inclusion of Financial Education as a Work Activity.--Section 
407 of the Social Security Act (42 U.S.C 607) is amended--
            (1) in subsection (c)(1)--
                    (A) in subparagraph (A), by striking ``or (12)'' 
                and inserting ``(12), or (13)''; and
                    (B) in subparagraph (B), by striking ``or (12)'' 
                each place it appears and inserting ``(12), or (13)'';
            (2) in subsection (d)--
                    (A) in paragraph (11), by striking ``and'' at the 
                end;
                    (B) in paragraph (12), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(13) financial education, as defined in subsection 
        (j).''; and
            (3) by adding at the end the following:
    ``(j) Definition of Financial Education.--In this part, the term 
`financial education' means education that promotes an understanding of 
consumer, economic, and personal finance concepts, including the basic 
principles involved with earning, budgeting, spending, saving, 
investing, and taxation.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2005.
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