```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9881 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9881

  To direct the Commissioner of Social Security to establish American 
Dream Accounts for every child born in the United States, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2024

Mr. Phillips (for himself, Mr. Vargas, and Mr. Thanedar) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and the Workforce, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
  To direct the Commissioner of Social Security to establish American 
Dream Accounts for every child born in the United States, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Dream Accounts Act of 
2024''.

SEC. 2. ESTABLISHMENT OF AMERICAN DREAM ACCOUNTS.

    (a) American Dream Account.--
            (1) In general.--The Commissioner shall establish and 
        manage an American Dream Account (in this Act, referred to as 
        an ``Account'') for each covered individual.
            (2) Initial amount.--Upon the establishment of an Account, 
        the Commissioner shall transfer $5,000 into such Account, to be 
        invested in accordance with section 3.
            (3) Vesting.--A contribution to an Account vests when a 
        contribution is made, and the balance of an Account is 
        nonforfeitable except as described in section 4(b)(5).
            (4) Distributions.--The Commissioner may only distribute 
        the balance of an Account upon receiving a request in 
        accordance with section 4.
    (b) Peace Corps and AmeriCorps Bonus.--If a covered individual 
serves, for at least 12 months, as a Peace Corps volunteer or volunteer 
leader (as referred to in the Peace Corps Act (22 U.S.C. 2501 et seq.)) 
or in an approved national service position (as defined in section 101 
of the National and Community Service Act of 1990 (42 U.S.C. 12511)), 
prior to the date that such individual turns 26 years of age and prior 
to requesting a disbursement under section 4, then the Commissioner 
shall transfer $10,000 to the Account of such covered individual.
    (c) Exempt From Benefit and Entitlement Determinations.--
Notwithstanding any other provision of law, the balance of an Account 
shall not be taken into account in determining the need or eligibility 
of a covered individual or the family of the covered individual under 
any Federal, State, or local program financed in whole or in part with 
Federal funds.

SEC. 3. INVESTMENT GUIDELINES.

    The Commissioner shall invest the funds of each Account established 
under this Act, and any interest or proceeds earned on such funds, in a 
commonly recognized index comprised of common stock, the aggregate 
market value of which is a reasonably complete representation of the 
United States equity markets.

SEC. 4. DISBURSEMENT.

    (a) In General.--The Commissioner shall, upon receiving a request 
pursuant to subsection (b)(1)(A), make a disbursement in accordance 
with the election made under subsection (b)(1)(B) to a covered 
individual or an eligible beneficiary in the form of--
            (1) a one-time disbursement;
            (2) monthly checks over a 12-month period;
            (3) a rollover contribution directly to a Roth IRA (as 
        defined in section 408A of the Internal Revenue Code of 1986); 
        or
            (4) any combination of the disbursements described in 
        paragraphs (1) through (3) as the Secretary may prescribe by 
        regulation.
    (b) Disbursement and Request Requirements.--
            (1) In general.--
                    (A) Request information.--To receive a disbursement 
                from the Account of a covered individual, such 
                individual, or an eligible beneficiary, shall submit a 
                request at such time, in such manner, and containing 
                such information as the Commissioner may require.
                    (B) Disbursement form.--As part of the request made 
                under subparagraph (A), a covered individual or 
                eligible beneficiary shall elect the form in which the 
                disbursement should be made.
            (2) Covered individual request eligibility.--To be eligible 
        to receive a disbursement under this Act, a covered individual 
        shall be older than 17 years of age and younger than 26 years 
        of age, and--
                    (A) earn a regular high school diploma (as defined 
                in section 8101(43)(A) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801(43)(A));
                    (B) earn a recognized equivalent of a diploma, such 
                as a general equivalency diploma or a home school 
                diploma; or
                    (C) obtain a waiver of disability from the Social 
                Security Administration.
            (3) Requirements for certain disbursements.--A covered 
        individual, or an eligible beneficiary, shall--
                    (A) in order to receive a one-time disbursement, 
                establish a bank account prior to submitting a request 
                for a disbursement; or
                    (B) in order to have the Commissioner transfer any 
                amount in a rollover contribution directly to a Roth 
                IRA (as defined in section 408A of the Internal Revenue 
                Code of 1986), establish a Roth IRA (as so defined) 
                prior to submitting a request for a disbursement.
            (4) Disbursement after death of a covered individual.--In 
        the case of a covered individual who dies prior to submitting a 
        request for a disbursement, an eligible beneficiary who is the 
        appropriate individual in accordance with the laws of the 
        domicile of the covered individual at the date of death of the 
        individual shall submit a request under paragraph (1) not later 
        than 1 year after the date of the death of such individual.
            (5) Failure to submit a request.--If a request for 
        disbursement is not submitted to the Commissioner to receive a 
        disbursement prior to the date that the individual turns 26 
        years of age, or within the necessary time period described in 
        paragraph (4), then the Commissioner shall transfer the balance 
        of such Account to the general fund of the Treasury.
    (c) Exempt From Benefit and Entitlement Determinations.--
Notwithstanding any other provision of law, an amount received as a 
disbursement from an Account under this Act shall not be taken into 
account, for the year in which the disbursement is received, in 
determining the need or eligibility of an individual under any Federal, 
State, or local program financed in whole or in part with Federal 
funds.
    (d) Attachment.--The right of any person to any payment from an 
Account under this Act shall not be transferable or assignable, at law 
or in equity, and none of the moneys paid or payable, or rights 
existing under this Act, shall be subject to execution, levy, 
attachment, garnishment, or other legal process, or to the operation of 
any bankruptcy or insolvency law.

SEC. 5. OFFICE OF THE AMERICAN DREAM.

    (a) Establishment.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Commissioner shall establish an 
        office, to be known as the ``Office of the American Dream'' 
        (referred to in this section as the ``Office''),
            (2) Director.--The Commissioner shall appoint a director of 
        the Office who has substantial experience, training, and 
        expertise in the management of financial investments and 
        pension benefit plans.
    (b) Duties.--The Office shall--
            (1) develop expertise in the management of financial 
        investments and pension benefit plans;
            (2) establish policies to guide the Commissioner's 
        investment and management of the Accounts, pursuant to the 
        guidelines described in section 3;
            (3) conduct periodic reviews of the Accounts, in 
        collaboration with the Office of Analytics, Review, and 
        Oversight, including the performance of investments made for 
        the Accounts;
            (4) regularly provide information to covered individuals 
        about the status of the Accounts of such individuals; and
            (5) carry out the duties of the Office solely in the 
        interest of covered individuals.

SEC. 6. TAX TREATMENT.

    (a) In General.--An Account is exempt from taxation under subtitle 
A of the Internal Revenue Code of 1986 and contributions to, and 
distributions from, an Account shall not be includible in the gross 
income of the beneficiary of such Account.
    (b) Rollovers to Roth IRAs.--
            (1) Section 408A(e)(1) of the Internal Revenue Code of 1986 
        is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B)(ii), by striking the period at the end of 
                subparagraph (C) and inserting ``, and'', and by 
                inserting after subparagraph (C) the following new 
                subparagraph:
                    ``(D) from an American Dream Account to the extent 
                provided in section 4 of the American Dream Accounts 
                Act of 2024.''; and
                    (B) in the last sentence--
                            (i) by inserting ``or American Dream 
                        Account'' after ``qualified tuition program'', 
                        and
                            (ii) by inserting ``or (D), respectively,'' 
                        after ``subparagraph (C)''.

SEC. 7. ESTABLISHMENT OF WEBSITE AND MOBILE APPLICATION.

    Not later than 1 year after the date of enactment of this Act, the 
Commissioner, in consultation with the Secretary of Education, shall 
develop a publicly accessible website and mobile application for 
covered individuals to access information about the Accounts of such 
individuals.

SEC. 8. FINANCIAL MANAGEMENT AND PERSONAL FINANCE BEST PRACTICES AND 
              GRANTS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Education shall disseminate best 
practices for teaching financial management described in subsection (b) 
to public elementary schools and public secondary schools.
    (b) Best Practices.--The best practices described in this 
paragraph--
            (1) shall include information relating to the tracking, 
        management, and usage of the Accounts; and
            (2) may include--
                    (A) methods to create a budget, track expenses, and 
                save for short-term and long-term financial objectives;
                    (B) effective ways to save and invest money, 
                including by introducing students to different 
                financial securities;
                    (C) information on the fundamentals of credit, 
                including a description and effects of credit scores, 
                and the importance of responsible credit card usage;
                    (D) critical thinking skills to evaluate financial 
                products, make informed decisions, and avoid financial 
                scams;
                    (E) methods to ensure that each student has a clear 
                understanding of postsecondary education financing 
                options, including student loan borrowing, in 
                preparation for enrollment at an institution of higher 
                education; and
                    (F) entrepreneurship training and the fundamentals 
                of starting a small business.
    (c) Grants.--
            (1) Grant authorized.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall establish a grant 
        program to award grants, on a competitive basis, to State 
        educational agencies to promote new and existing strategies to 
        expand, develop, implement, evaluate, and disseminate 
        professional development programs in financial literacy for the 
        voluntary use of innovative approaches to teaching financial 
        literacy to elementary and secondary school students.
            (2) Application.--To be eligible to receive a grant under 
        this section, a State educational agency shall submit to the 
        Secretary of Education an application at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            (3) Subgrants.--A State educational agency receiving a 
        grant under this Act shall use any remaining funds to provide 
        grants to local educational agencies in the State for such 
        local education agencies to provide professional development to 
        teachers.
            (4) Additional uses of funds.--Each State educational 
        agency may use not more than 10 percent of a grant received 
        under this Act--
                    (A) for the development of financial literacy and 
                personal finance curricula; or
                    (B) to conduct an evaluation of the impact of 
                financial literacy or personal finance education on 
                students' understanding of financial literacy concepts.
    (d) ESEA Definitions.--In this section, the terms ``elementary 
school'', ``local educational agency'', ``secondary school'', and 
``State educational agency'' have the meanings given the terms in 
section 8101 of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7801).

SEC. 9. DEFINITIONS.

    In this Act:
     (a) Commissioner.--The term ``Commissioner'' means the 
Commissioner of Social Security.
    (b) Covered Individual.--The term ``covered individual'' means an 
individual who, after the date of enactment of this Act--
            (1) has been issued a social security account number; and
            (2)(A) is born a citizen of the United States; or
            (B) becomes a naturalized citizen of the United States 
        prior to turning 18 years of age.
    (c) Eligible Beneficiary.--The term ``eligible beneficiary'' means 
a person who is--
            (1) entitled to receive funds on behalf of a covered 
        individual under the laws of the domicile of the covered 
        individual; and
            (2) not the individual for whom the Account was 
        established.

SEC. 10. APPROPRIATIONS.

    Out of any money in the Treasury of the United States not otherwise 
appropriated, there are appropriated such sums as are necessary to 
carry out this Act.
                                 <all>
```