[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3147 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3147
To establish a grant program in the Department of the Treasury 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 adults and families
ages 15-24 years old, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 9, 2009
Mr. Carson of Indiana (for himself, Mrs. McCarthy of New York, Mr.
Sestak, Ms. Kilpatrick of Michigan, Ms. Waters, Ms. Bordallo, Mr. Moran
of Virginia, Mr. Reyes, Ms. Moore of Wisconsin, Mr. Meek of Florida,
and Mr. Ellison) introduced the following bill; which was referred to
the Committee on Financial Services, and in addition to the Committee
on Education and Labor, 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 Department of the Treasury 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 adults and families
ages 15-24 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 Adults Financial Literacy
Act''.
SEC. 2. FINDINGS.
The Congress find as follows:
(1) Eighty percent of parents believe schools are teaching
money management and budgeting, while over 70 percent of
teachers are not teaching financial literacy.
(2) 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.
(3) 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.
(4) There is an urgent need to respond to the economic
crisis 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.
(5) More than 70 percent of parents say they have spoken
with their teens about credit and using credit cards wisely,
while less than 44 percent of the teenaged children of those
respondents say their parents have talked to them about credit
cards.
(6) Seventy-six percent of parents surveyed said their high
school student does not have a budget.
(7) The average credit card debt among graduate students
who carry cards is $7,831 per student, an increase of 59
percent over 1998's average debt of $4,925.
(8) Young adults between 20 and 24 represent the fastest
growing segment of bankruptcy filings; in fact, more people
filed for bankruptcy in 2004 than graduated from college.
(9) Credit card debt among young adults between the ages of
25 and 34 has increased 55 percent, while credit card debt
among the youngest adults, between 18 and 24, has skyrocketed
104 percent since 1982.
(10) In April of 2009, the Comptroller General testified to
the Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia, of the
Committee on Homeland Security and Governmental Affairs of the
Senate that ``In 2006, we reported that the [Financial Literacy
and Education] Commission's National Strategy for Financial
Literacy was a useful first step in focusing attention on
financial literacy but largely was descriptive rather than
strategic. . . . However, to date the Commission has not
incorporated the other elements we recommended. . . . For the
most part, these revisions have consisted of newly developed
`calls to action' and have not represented a fundamental shift
in approach that incorporates specific recommendations on
roles, funding, and activities.''.
SEC. 3. GRANT PROGRAM TO FUND THE ESTABLISHMENT OF CENTERS OF
EXCELLENCE IN FINANCIAL LITERACY EDUCATION.
(a) In General.--The Secretary of the Treasury, acting through the
Assistant Secretary for Financial Institutions and the Deputy Assistant
Secretary for Financial Education and in consultation with the
Secretary of Education and the Financial Literacy and Education
Commission established under the Financial Literacy and Education
Improvement Act, may make competitive grants to and enter into
contracts 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 adults and families ages 15-24 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 adults
ages 15-24 which can be incorporated into educational settings
through existing academic content areas.
(2) Targeting programs based on a set of educational
expectations, pre- and post-education assessment tools,
effective training programs for educators, and materials that
appropriately serve various segments of young adult and family
populations, particularly minority and disadvantaged
individuals.
(3) Aligning financial literacy education programs to a set
of core competencies and concepts, including goal setting;
planning; budgeting; managing money or transactions; tools and
structures; behaviors; consequences; saving, both long- and
short-term; managing debt and earning.
(4) Designing instructional materials using evidence-based
content for young families and related outreach activities to
address unique life situations and financial pitfalls such as
bankruptcy, foreclosure, credit card misuse, and predatory
lending.
(5) Developing and supporting the delivery of professional
development programs in financial literacy education that are
research-based, on-going and collaborative to assure competence
and accountability in the delivery system, including
recognition of achievement and competence within existing
systems for educators and instructors.
(6) Improving access to financial literacy education
programs for young adults and families by collaborating with
financial institutions to disseminate information and awareness
of the importance of financial literacy education.
(7) 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 in partnership with non-profit associations.
(8) Conducting on-going research and evaluation to assure
learning of defined skills and knowledge, and retention of
learning.
(9) Developing research-based assessment and accountability
of the appropriate applications of learning over short and long
terms.
(c) Priority for Certain Applications.--The Secretary 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 adults and families
in unique life situations, specifically individuals in ages 15-
24 years old;
(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; and
(6) establish professional development and delivery systems
using evidence-based practices.
(d) Application and Evaluation Standards and Procedures,
Distribution Criteria.--The Secretary shall, by regulation and order,
establish application and evaluation standards and procedures,
distribution criteria, and such other forms, standards, definitions,
and procedures as the Secretary determines to be appropriate.
(e) Minimum and Maximum Amount of Any Grant.--No grant under this
section may be for an amount less than $2,000,000 or more than
$5,000,000.
(f) Definitions.--For purposes of this Act the following
definitions shall apply:
(1) Eligible institution.--The term ``eligible
institution'' means any partnership consisting of an
institution of higher education and any of the following which
meets such requirements for eligibility as the Secretary of the
Treasury and the Secretary of Education may jointly prescribe
by regulation:
(A) One or more local educational agencies.
(B) A nonprofit agency, organization, or
association.
(C) A community-based organization.
(D) A financial institution.
(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)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury, unless the context specifically refers to the
Secretary of Education.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Secretary $55,000,000
for each of fiscal years 2010 through 2014 for carrying out this Act.
SEC. 5. REGULATIONS.
In addition to regulations prescribed under section 3(d), the
Secretary may prescribe such regulations as may be necessary to carry
out this Act.
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