II 112th CONGRESS 1st Session S. 865 IN THE SENATE OF THE UNITED STATES May 2, 2011 Mrs. Murray (for herself and Mr. Cochran) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To provide grants to promote financial literacy.

1.

Short title

This Act may be cited as the Financial and Economic Literacy Improvement Act of 2011.

2.

Financial literacy education grants

(a)

In general

Part D of title V of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7241 et seq.) is amended by inserting after section 5537 the following: 13A

Financial literacy education

5538.

Financial literacy education grants

(a)

Authorization

The Secretary shall award grants to eligible entities to enable such entities— (1)to award subgrants to local entities to provide financial literacy education; and (2)to carry out activities designed to promote financial literacy education. (b)

Eligible entities

In this section, the term eligible entity means— (1)a State educational agency; or (2)a State partnership consisting of— (A)a State educational agency; and (B)a nonprofit organization with experience and a proven quality track record in financial literacy or personal finance education programs. (c)

Application

An eligible entity that desires to receive a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. (d)

Formula

From the total amount appropriated under subsection (g) for a fiscal year, the Secretary shall allot to each State for such fiscal year an amount that bears the same relation to such total amount as the amount such State received under part A of title I for such fiscal year bears to the total amount received by all States under part A of title I for such fiscal year. (e)

Use of funds

(1)

Subgrants to eligible local entities

(A)

Eligible local entity

In this section, the term eligible local entity means— (i)a local educational agency; or (ii)a local partnership consisting of— (I)a local educational agency; and (II)not less than 1 of the following: (aa)A nonprofit organization with experience and a proven track record in quality financial literacy or personal finance education programs. (bb)An educational service agency. (cc)A recipient of an Excellence in Economic Education grant under subpart 13. (dd)An institution of higher education. (ee)A community organization. (ff)A representative of local business. (B)

Authorization of subgrants

An eligible entity that receives a grant under this section shall use 75 percent of such grant funds to award subgrants to eligible local entities. (C)

Applications

(i)

In general

An eligible local entity that desires to receive a subgrant under this paragraph shall submit an application to the eligible entity at such time, in such manner, and accompanied by such information as the eligible entity may require. (ii)

Review of applications

The eligible entity shall review applications submitted under clause (i) in the same manner as applications are reviewed under section 5534(b). (D)

Use of funds

An eligible local entity that receives a subgrant under this paragraph— (i)shall use the subgrant funds to— (I)implement teacher training programs to embed financial literacy and personal finance education into core academic subjects; (II)administer financial literacy assessments on not less than an annual basis in, at a minimum, the grade levels selected by the State pursuant to paragraph (2)(A); and (III)implement financial literacy activities and sequences of study within core academic subjects; and (ii)may use the subgrant funds to implement school-based activities, including after school activities, to enhance student understanding and experiential learning with consumer, economic, and personal finance concepts. (E)

Report

An eligible local entity that receives a subgrant under this paragraph shall include in the annual report card under section 1111(h)(2) the same information on student achievement on the financial literacy assessments, administered pursuant to subparagraph (D), as required, pursuant to section 1111(h)(2), of the other State academic assessments described in section 1111(b)(3). (2)

State activities

An eligible entity that receives a grant under this section shall use 25 percent of such grant funds to carry out the following: (A)The development of financial literacy standards in not less than 3 grade levels, including not less than 1 grade level in elementary school, not less than 1 grade level in middle school, and not less than 1 grade level in high school. (B)The development of appropriate financial literacy assessments in the grade levels determined under subparagraph (A) that are valid, reliable, and comparable across the State. (C)Teacher professional development programs to embed financial literacy or personal finance education into core academic subjects. (D)An evaluation of the impact of financial literacy or personal finance education on students’ understanding of financial literacy concepts. (f)

Matching funds

An eligible entity that receives a grant under this section shall provide, from non-Federal sources, an amount equal to 25 percent of the amount of the grant award to carry out activities required under this section. (g)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $125,000,000 for each of fiscal years 2012 through 2017.

. (b)

Table of contents

The table of contents in section 2 of the Elementary and Secondary Education Act of 1965 is amended by inserting after the item relating to section 5537 the following: Subpart 13A—Financial literacy education Sec. 5538. Financial literacy education grants. .

3.

Grants to promote postsecondary financial literacy

Part A of title III of the Higher Education Act of 1965 (20 U.S.C. 1057 et seq.) is amended by adding at the end the following:

320A.

Grants to promote postsecondary financial literacy

(a)

Authorization of grant awards

The Secretary shall award grants, on a competitive basis, to eligible entities to enable such entities to provide financial literacy courses or course components to students. (b)

Definition of eligible entity

In this section, the term eligible entity means— (1)an institution of higher education; or (2)a partnership consisting of— (A)an institution of higher education; and (B)a nonprofit organization with experience and a proven track record in quality financial literacy or personal finance education programs. (c)

Application

An eligible entity that desires to receive a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. (d)

Minimum grant amount

The Secretary shall award grants under this section in amounts of not less than $500,000. (e)

Use of funds

An eligible entity that receives a grant under this section shall use the grant funds to develop and implement financial literacy education, activities, student organizations, or counseling that increase student knowledge in consumer, economic, and personal financial concepts. (f)

Authorization of appropriations

There are authorized to be appropriated to carry out this section $125,000,000.

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