Findings and purpose

(a)

Findings

Congress finds that— (1)many consumers, particularly low- and moderate-income households, face significant challenges in managing personal finances, reducing debt, building savings, and accessing responsible credit; (2)financial coaching services have been shown to improve financial stability, increase long-term financial capability, improve credit scores, and reduce vulnerability to economic shocks; (3)nonprofit and community-based organizations play a critical role in training and deploying financial coaches to deliver culturally competent, accessible, and individualized financial coaching services to consumers in need; (4)the Department of the Treasury, through its Office of Consumer Policy, is well-positioned to administer a national program supporting financial coaching initiatives that promote household financial resilience and economic mobility; and (5) the absence of uniform certification standards for financial coaches results in inconsistent service quality and restricts the professional development of practitioners, underscoring the need for Federal support to inform a standardization of credentialing for financial coaches and agencies that provide these services. (b)

Purposes

The purposes of this Act are— (1) to establish a Federal program to provide grants to eligible organizations offering financial coaching services to consumers; (2)to strengthen the capacity of community-based providers to deliver effective, evidence-based financial coaching; (3)to enhance consumer financial well-being by increasing access to trusted, high-quality financial guidance; and (4)to authorize the Office of Consumer Policy within the Department of the Treasury to administer, oversee, and evaluate the program; and to research and develop standardized practices for certifying financial coaches and the agencies that employ them.

Financial coaching services grant

(a)

Establishment

Not later than 1 year after the date of the enactment of this section, the Secretary of the Treasury, acting through the Director of the Office of Consumer Policy (hereinafter referred to as the Director), shall establish a program to award grants to eligible entities to provide financial coaching services. (b)

Eligible entities

To be eligible for a grant under this section, an entity shall— (1)be— (A)a nonprofit, community-based organization; (B)a community development financial institution (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)); or (C)a minority depository institution (as defined in section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note)); and (2)have— (A)been in operation for not less than 1 year; (B)if serving a clientele or service area with a high rate of non-English proficiency speakers, established relationships with private, public, or nonprofit community-based entities that provide non-English language services and can provide referrals for financial coaching services; (C)established, or plans to establish, a financial coaching program as described subsection (c); and (D)such program— (i)located in, or predominantly serving— (I)1 or more census tracts where— (aa)with respect to a census tract located in a metropolitan area, the median family income is at or below 120 percent of the metropolitan median family income; or (bb) with respect to a census tract located outside a metropolitan area, the median family income is at or below 120 percent of the statewide median family income; (II)a census tract where not less than 50 percent of the population self-identifies as a racial or ethnic minority; or (III)1 or more census tracts in a rural area (as the term is defined by the Director of the Bureau of the Census); or (ii)predominantly serving individuals making at or below 120 percent of the Area Median Income. (c)

Application

An eligible entity that seeks a grant under this section shall submit to the Director an application at such time, in such manner, and containing such information as the Director requires, including a description of— (1)organizational information and financial coaching services of such entity; (2)staff qualification and experience, including a detailed description of any certification, credentialing or continuing education required of its financial coaches; (3)a work plan that outlines activities, target audiences, goals, and anticipated results; (4)the financial stability of such entity, including financial statements and a proposed budget for the financial coaching program of such entity; and (5)languages served by such entity. (d)

Eligible uses

The Secretary shall award grants to eligible entities under this section to be used— (1)by the eligible entity for general purposes of such entity; or (2)by the eligible entity for the purpose of awarding subgrants and technical assistance to other eligible entities that provide financial coaching. (e)

Financial coaching best practices

The Director shall carry out such activities as necessary to help elevate best practices in the financial coaching industry, and to facilitate the development of standardized protocols for credentialing financial coaches and agencies that provide these services. (f)

Authorization of appropriations

(1)

In general

There is authorized to be appropriated to the Director $100,000,000 for fiscal years 2026 through 2028, of which— (A)55 percent of such appropriated sum be used for the purposes described in subsection (d)(1); and (B)45 percent of such appropriated sum be used for the purpose described in subsection (d)(2). (2)

Proportions

The Director may update the proportions of funds described in paragraph (1) if the Director determines that there are insufficient amounts to carry out either purposes described in paragraphs (1) and (2) of subsection (d).