To award grants to State educational agencies to support the provision of financial education to high school students.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Young Investor Financial Education 
Act''.

SEC. 2. FINANCIAL EDUCATION GRANTS AND SUBGRANTS.

    (a) Grants to State Educational Agencies.--From the sums allocated 
under section 4, the Secretary of Education shall award grants to State 
educational agencies to support the provision of financial education in 
high schools in accordance with sections 3 and 5.
    (b) Subgrants to Local Educational Agencies.--From any of the grant 
funds awarded under subsection (a), a State educational agency may 
award a subgrant to a local educational agency to support the provision 
of financial education in high schools in accordance with sections 3 
and 5.

SEC. 3. APPLICATION.

    (a) In General.--To qualify to receive a grant under section 2(a), 
a State educational agency shall submit an application to the Secretary 
at such time and in such manner as the Secretary may require, and 
containing the information described in subsection (b).
    (b) Contents.--The application required by subsection (a) shall 
include a description of the financial education program that will be 
developed and implemented with the grant or subgrant funds received 
under this Act, including--
            (1) the classes and topics covered in the program;
            (2) certification that not later than the next school year 
        after the receipt of the grant, financial education will be 
        available in high schools under the jurisdiction of such State 
        educational agency; and
            (3) any other information that the Secretary may require.

SEC. 4. RESERVATION AND FORMULA.

    (a) Outlying Areas.--From the sums appropriated under section 8 for 
each fiscal year, the Secretary shall reserve not more than 0.5 percent 
of such sums for payments to outlying areas, to be allotted in 
accordance with their respective needs for assistance under this Act, 
as determined by the Secretary.
    (b) States.--
            (1) Formula.--From the sums appropriated under section 8 
        for each fiscal year and not reserved under subsection (a) of 
        this section or section 7, the Secretary shall allot, and make 
        available in accordance with this Act, to each State 
        educational agency in a State with an approved application an 
        amount that bears the same ratio to such sums as the number of 
        individuals aged 14 through 17 in the State to the total number 
        of individuals aged 14 through 17 in all States, except that no 
        State educational agency shall receive less than an amount 
        equal to one-half of 1 percent of such sums.
            (2) Reallotment of unused funds.--If a State educational 
        agency does not submit an application or the Secretary does not 
        approve a State educational agency's application, the Secretary 
        shall reallot any portion of the State educational agency's 
        allotment under paragraph (1) to the remaining State 
        educational agencies in accordance with paragraph (1).

SEC. 5. USES OF FUNDS.

    A State educational agency or local educational agency that 
receives a grant or subgrant under this Act shall use the grant or 
subgrant funds--
            (1) to develop or to purchase financial education 
        materials;
            (2) to train teachers in financial education course work, 
        such as responsible money management, credit card use, saving, 
        investing, and financial planning; and
            (3) to pay for other incidental costs related to 
        establishing financial education programs in high schools.

SEC. 6. REPORTING.

    (a) State Educational Agencies.--Not later than 1 year after the 
date of enactment of this Act, and annually thereafter, each State 
educational agency receiving a grant under this Act shall prepare and 
submit a report to the Secretary containing information on the 
financial education programs and activities carried out by the State 
educational agency, and the effectiveness of such programs and 
activities in improving the financial education of high school 
students.
    (b) Secretary.--Not later than 18 months after the date of 
enactment of this Act, and annually thereafter, the Secretary shall 
prepare and submit to the Committee on Education and Labor of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report on the financial education programs and 
activities carried out under this Act, and the effectiveness of such 
programs and activities in improving the financial education of high 
school students.

SEC. 7. CLEARINGHOUSE.

    From the sums appropriated under section 8 for each fiscal year, 
the Secretary shall reserve $2,000,000 of such sums to establish and 
maintain, through grant or by contract, a central clearinghouse of 
information that--
            (1) provides information and technical assistance to State 
        educational agencies and local educational agencies in 
        developing content and curriculum materials for high school 
        financial education;
            (2) maintains, coordinates, and disseminates information on 
        effective financial education programs, including private and 
        non-profit school-based financial education programs, that hold 
        the potential for broad scale implementation and replication; 
        and
            (3) publishes, on an annual basis, a list of State 
        educational agencies or local educational agencies that are 
        grant or subgrant recipients under this Act, and the amounts 
        such State educational agencies or local educational agencies 
        receive under this Act.

SEC. 8. APPROPRIATIONS.

    There are authorized to be appropriated $100,000,000 to carry out 
this Act for each of the fiscal years 2010 through 2014.

SEC. 9. DEFINITIONS.

    The following definitions apply to this Act:
            (1) Charter school.--The term ``charter school'' has the 
        meaning given such term in section 5210 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7221i);
            (2) Financial education.--The term ``financial education'' 
        means course work for high school students that is aligned with 
        State academic standards and promotes financial literacy, such 
        as responsible money management, credit card use, saving, 
        investing, and financial planning;
            (3) High school.--The term ``high school'' means a 
        nonprofit institutional day or residential school, including a 
        charter school, providing grade 9 through grade 12 education, 
        as determined under State law.
            (4) Local educational agency.--The term ``local educational 
        agency'' has the meaning given such term in section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (5) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands, and, until an 
        agreement for the extension of United States education 
        assistance under the Compact of Free Association for the 
        Republic of Palau becomes effective after the date of enactment 
        of this Act, includes the Republic of Palau.
            (6) Secretary.--The term ``Secretary'' means Secretary of 
        Education.
            (7) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.
            (8) State educational agency.--The term ``State educational 
        agency'' has the meaning given such term in section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).

Summary: Young Investor Financial Education Act - Directs the Secretary of Education to award grants to states and, through them, subgrants to local educational agencies to establish financial education programs in high schools and train teachers in such course work. Allots funds to states based on their share of the country's 14 through 17 year olds, but requires each state grantee to receive at least one-half of 1 of the allotted funds. Directs the Secretary to create and maintain a central clearinghouse of information on high school financial education programs.