Young Americans Financial Literacy Act

Summary#

This bill would create a competitive grant program run by the Bureau of Consumer Financial Protection. Grants would fund "centers of excellence" that research, develop, plan, carry out, and evaluate financial literacy education programs for young people and families ages 8 through 24. The Bureau Director, working with the Financial Literacy and Education Commission, would set application rules and a list of core financial topics. Eligible applicants must be partnerships of two or more entities such as colleges, state or local financial education agencies, nonprofits, financial institutions, or small partner organizations. The bill lists specific authorized activities (for example, curriculum development, professional development for teachers, outreach, student loan education, and program evaluation). The Director would give funding priority to applications that meet defined criteria (age-appropriate content, evidence-based methods, serving at-risk populations, cultural or language sensitivity, plans for sustainability, and sharing results). Grants must reach audiences through traditional and digital methods, including appropriate social media and user-friendly websites. Each fiscal year the total grant funding must be at least $27,500,000 and may not exceed $55,000,000. No grants may be made after fiscal year 2029. The Director must report annually to Congress with a list of recipients and the populations served.

What it means for you#

  • Young people and families ages 8–24 could gain access to new, research-based financial education programs developed with federal grant support.
  • Schools, nonprofits, colleges, state or local agencies, and financial firms can form partnerships to apply for grant funding to run or expand programs.
  • Programs funded under the bill may include lessons on budgeting, saving, managing debt, student loans, and avoiding predatory lending, and may use digital tools and social media.
  • The bill does not itself require schools to teach financial education; it creates grant funding to support programs and research.

Expenses#

  • The bill specifies aggregate annual grant funding must be at least $27,500,000 and may not exceed $55,000,000 each fiscal year while authorized.
  • No grants may be made after the end of fiscal year 2029.
  • No additional cost estimates, offsets, or total program cost through 2029 are provided in the bill text. No publicly available information.

Proponents' View#

  • The bill's findings say many Americans support teaching financial education in schools (88 percent) and many K-12 teachers agree it should be taught (92 percent), yet few teachers currently teach it (12 percent).
  • The findings note less than half of states require a high school personal finance course and low rates of required semester courses for students.
  • Supporters cite surveys showing many adults rate their own financial literacy as low and argue research-based education can help people manage money, cope with financial hardship like during COVID-19, and reduce problems such as student loan default.
  • The bill emphasizes reaching diverse and at-risk populations and using evidence-based methods to improve long-term financial skills and behaviors.

Opponents' View#

No publicly available information.