[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 626 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 626

 To require the Secretary of Education to establish a pilot program to 
    award grants to State and local educational agencies to develop 
 financial literacy programs in elementary and secondary schools, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2011

 Mr. Cleaver introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of Education to establish a pilot program to 
    award grants to State and local educational agencies to develop 
 financial literacy programs in elementary and secondary schools, 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 ``Financial Literacy for Youth Act of 
2011'' or the ``FLY Act of 2011''.

SEC. 2. REQUIREMENT TO ESTABLISH A PILOT PROGRAM TO AWARD GRANTS TO 
              STATE AND LOCAL EDUCATIONAL AGENCIES TO DEVELOP FINANCIAL 
              LITERACY PROGRAMS IN ELEMENTARY AND SECONDARY SCHOOLS.

    (a) In General.--
            (1) Pilot program.--The Secretary of Education (referred to 
        in this Act as the ``Secretary'') shall establish a pilot 
        program to award grants to State and local educational agencies 
        to develop financial literacy programs in elementary and 
        secondary schools.
            (2) Grant awards.--The Secretary shall award grants under 
        the pilot program to 10 State or local education agencies.
    (b) Application.--
            (1) In general.--Each State or local educational agency 
        that desires a grant under the pilot program shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may reasonably 
        require.
            (2) Contents.--Each grant application under the pilot 
        program shall describe how--
                    (A) funds will be used to incorporate financial 
                literacy into the curriculum;
                    (B) a local educational agency will work with State 
                educational agencies to ensure that the curriculum is 
                in compliance with State standards;
                    (C) the funds will be used for professional 
                development;
                    (D) a local educational agency will coordinate its 
                financial literacy program with local, State, and 
                Federal programs (or other community initiatives, if 
                applicable); and
                    (E) a local educational agency will measure 
                performance and evaluate the effectiveness of its 
                program.
    (c) Use of Funds.--A grant award under the pilot program shall be 
used to integrate financial literacy programs into elementary and 
secondary school curriculums; to carry out professional development, 
including fellowships for financial literacy instructors and personnel 
(including licensed teachers, education administrators, and bank 
personnel) involved in the education of financial literacy programs; to 
conduct program evaluations and surveys; and to collect, analyze, and 
develop information necessary to accomplish the pilot program.
    (d) Maximum Grant.--A grant award under the pilot program to any 
one State or local educational agency shall be not more than $250,000 
for any fiscal year.
    (e) Limitation on Administrative Costs.--Not more than 4 percent of 
the amounts made available under the pilot program for any fiscal year 
may be used for administrative costs to carry out the pilot program.
    (f) Reports.--
            (1) Report by a state or local education agency.--Not later 
        than 90 days after the conclusion of the pilot program, a State 
        or local educational agency shall prepare and submit to the 
        Secretary a report that details which curriculums and policies 
        implemented in the financial literacy program were successful 
        or unsuccessful, which curriculums and policies they would 
        recommend to other education agencies, and such further 
        guidelines for this report as the Secretary shall deem 
        necessary.
            (2) Report by the secretary.--Not later than 180 days after 
        the conclusion of the pilot program, the Secretary shall submit 
        to the Committee on Financial Services and the Committee on 
        Education and Labor a report on the pilot program.
    (g) Financial Literacy Defined.--The term ``financial literacy'' 
means the acquisition of knowledge and understanding of all personal 
financial matters and transactions, from finance management and 
investment, to being able to make sound financial decisions, including 
but not limited to understanding--
            (1) how to balance a check book, read a credit card 
        statement, and calculate interest rates;
            (2) what a pay stub is and why Federal and State taxes, 
        Social Security, and Medicare are deducted from wages;
            (3) the differences between various types of bank accounts;
            (4) the significance of a credit score and how to read 
        credit reports;
            (5) the marketing techniques frequently used by individuals 
        and businesses to attract patrons; and
            (6) the importance of saving for college and retirement.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for each of the fiscal years 
2012 through 2017 to carry out the pilot program.
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