To provide grants to promote financial and economic literacy.

Summary: Financial and Economic Literacy Improvement Act of 2009 - Amends the Elementary and Secondary Education Act of 1965 to direct the Secretary of Education to award formula matching grants to states or partnerships between states, experienced nonprofit providers of financial and economic literacy education, and experienced nonprofit providers of teacher training in such fields.

Requires grantees to use 25% of the grant funds to: (1) develop financial and economic literacy standards and assessments for at least three grade levels; (2) create teacher training programs to embed financial and economic literacy education into core academic subjects; and (3) evaluate the impact such education has on students' financial and economic literacy.

Requires the remaining grant funds to be used for subgrants to local educational agencies (LEAs) or partnerships between LEAs and community organizations, local businesses, or other educational entities to implement such financial literacy activities, including student assessments and teacher training.

Directs the Secretary to maintain a Financial and Economic Literacy and Economic Education Clearinghouse of best practices, tools, and instructional materials that are aligned with voluntary nationally recognized curriculum standards in such areas.

Amends the Higher Education Act of 1965 to direct the Secretary to award competitive grants to institutions of higher education (IHEs) or partnerships between IHEs, experienced nonprofit providers of financial and economic literacy education, and experienced nonprofit providers of teacher training in such fields for activities that increase student knowledge in consumer, economic, and personal financial concepts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial and Economic Literacy 
Improvement Act of 2009''.

SEC. 2. FINANCIAL AND ECONOMIC 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:

        ``Subpart 13A--Financial and Economic Literacy Education

``SEC. 5538. FINANCIAL AND ECONOMIC 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 and economic literacy education; and
            ``(2) to carry out activities designed to promote financial 
        and economic 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;
                    ``(B) a nonprofit organization with experience and 
                a proven quality track record in financial and economic 
                literacy or personal finance education programs; and
                    ``(C) a nonprofit organization with experience and 
                a proven track record in quality professional 
                development for teachers leading to higher student 
                achievement in skills and subjects integral to 
                financial and economic literacy or personal finance 
                education.
    ``(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 and economic 
                                        literacy or personal finance 
                                        education programs.
                                            ``(bb) A nonprofit 
                                        organization with experience 
                                        and a proven track record in 
                                        quality professional 
                                        development for teachers 
                                        leading to higher student 
                                        achievement in skills and 
                                        subjects integral to financial 
                                        and economic literacy or 
                                        personal finance education.
                                            ``(cc) An educational 
                                        service agency.
                                            ``(dd) A recipient of an 
                                        Excellence in Economic 
                                        Education grant under subpart 
                                        13.
                                            ``(ee) An institution of 
                                        higher education.
                                            ``(ff) A community 
                                        organization.
                                            ``(gg) 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 and 
                                economic literacy and personal finance 
                                education into core academic subjects 
                                or to effectively coordinate the 
                                teaching of core academic subjects with 
                                teaching of financial and economic 
                                literacy and personal finance 
                                education;
                                    ``(II) administer financial and 
                                economic 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 and 
                                economic literacy activities and 
                                sequences of study within, or 
                                coordinated with, 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 and economic 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 and economic 
                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 and 
                economic 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 and economic literacy or personal 
                finance education into core academic subjects.
                    ``(D) An evaluation of the impact of financial and 
                economic literacy or personal finance education on 
                students' understanding of financial and economic 
                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 2010 through 2015.

``SEC. 5539. FINANCIAL AND ECONOMIC LITERACY AND ECONOMIC EDUCATION 
              CLEARINGHOUSE.

    ``(a)  Clearinghouse.--The Secretary shall maintain a clearinghouse 
of best practices, tools, and instructional materials for financial and 
economic literacy and personal finance instruction, aligned with 
voluntary nationally recognized curriculum standards in such areas, for 
students of elementary school, secondary school, and postsecondary 
school age (to be known as the `Financial and Economic Literacy and 
Economic Education Clearinghouse').
    ``(b) Activities.--The Financial and Economic Literacy and Economic 
Education Clearinghouse shall collect and disseminate high-quality 
materials on financial and economic literacy, including best practices, 
professional development, and teaching tools that are aligned with 
voluntary nationally recognized curriculum standards in such areas.
    ``(c) Accessibility.--The information of the Financial and Economic 
Literacy and Economic Education Clearinghouse shall--
            ``(1) be housed in a centrally accessible and user-friendly 
        format and location; and
            ``(2) be easily accessible from the Department of Education 
        website.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2010 through 2015.''.
    (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 and Economic Literacy Education

``Sec. 5538. Financial and economic literacy education grants.
``Sec. 5539. Financial and Economic Literacy and Economic Education 
                            Clearinghouse.''.

SEC. 3. GRANTS TO PROMOTE POSTSECONDARY FINANCIAL AND ECONOMIC 
              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:

``SEC. 318. GRANTS TO PROMOTE POSTSECONDARY FINANCIAL AND ECONOMIC 
              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 and economic 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;
                    ``(B) a nonprofit organization with experience and 
                a proven track record in quality financial and economic 
                literacy or personal finance education programs; and
                    ``(C) a nonprofit organization with experience and 
                a proven track record in quality professional 
                development for teachers leading to higher student 
                achievement in skills and subjects integral to 
                financial and economic literacy or personal financial 
                education.
    ``(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 and economic 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 for each of the 
fiscal years 2010 through 2015.''.