I 

118TH CONGRESS 

1ST SESSION H. R. 1041 

To establish American opportunity accounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 14, 2023 

Ms. PRESSLEY (for herself, Ms. TLAIB, Mrs. WATSON COLEMAN, Mrs. 

BEATTY, Mr. AUCHINCLOSS, Mr. CARTER of Louisiana, Ms. LEE of California, Ms. JAYAPAL, Mr. BOWMAN, Ms. NORTON, Mr. DAVIS of Illinois, 

Mr. EVANS, Mr. BLUMENAUER, Ms. OMAR, Mr. MOULTON, Ms. MENG, 

Mr. LARSON of Connecticut, Mr. CARSON, Mr. THOMPSON of Mississippi, 

Mr. CLEAVER, Ms. CLARKE of New York, Ms. DELAURO, Ms. SCHAKOWSKY, Ms. JACOBS, Ms. BUSH, Ms. CROCKETT, Mr. COURTNEY, Ms. 

BARRAGA ́N, Mr. CASAR, Ms. OCASIO-CORTEZ, and Ms. LEE of Pennsylvania) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To establish American opportunity accounts, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘American Opportunity Accounts Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. American Opportunity Fund. 

Sec. 4. AO accounts. 

Sec. 5. Assignment, alienation, and treatment of deceased individuals. 

Sec. 6. Rules governing AO accounts relating to investment, accounting, and 

reporting. 

Sec. 7. American Opportunity Fund Board. 

Sec. 8. Fiduciary responsibilities. 

Sec. 9. Accounts disregarded in determining eligibility for Federal benefits. 

Sec. 10. Reports. 

Sec. 11. Programs for promoting financial capability. 

Sec. 12. Tax treatment. 

1 SEC. 2. DEFINITIONS. 

2 For purposes of this title— 

3 (1) AMERICAN OPPORTUNITY FUND.—The term 

4 ‘‘American Opportunity Fund’’ means the fund es5 tablished under section 3. 

6 (2) AO ACCOUNT.—The term ‘‘AO account’’ 

7 means an American opportunity account established 

8 under section 4. 

9 (3) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of the Treasury or the Secretary’s del11 egate. 

12 (4) AMERICAN OPPORTUNITY FUND BOARD.— 

13 The term ‘‘American Opportunity Fund Board’’ 

14 means the board established pursuant to section 7. 

15 (5) EXECUTIVE DIRECTOR.—The term ‘‘Execu16 tive Director’’ means the executive director ap17 pointed pursuant to section 7. 


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1 SEC. 3. AMERICAN OPPORTUNITY FUND. 

2 (a) ESTABLISHMENT.—There is established in the 

3 Treasury of the United States a fund to be known as the 

4 ‘‘American Opportunity Fund’’. 

5 (b) AMOUNTS HELD BY FUND.—The American Op6 portunity Fund shall consist of the sum of all amounts 

7 paid into the Fund under this Act, increased by the total 

8 net earnings from investments of sums held in the Fund 

9 or reduced by the total net losses from investments of 

10 sums held in the Fund, and reduced by the total amount 

11 of payments made from the Fund (including payments for 

12 administrative expenses). 

13 (c) USE OF FUND.— 

14 (1) IN GENERAL.—The sums in the American 

15 Opportunity Fund shall be appropriated and shall 

16 remain available without fiscal year limitation— 

17 (A) to make contributions to AO accounts; 

18 (B) to invest under section 6; 

19 (C) to make distributions in accordance 

20 with this Act; 

21 (D) to pay the administrative expenses of 

22 carrying out this Act; and 

23 (E) to purchase insurance as provided in 

24 section 8(c)(2). 

25 (2) EXCLUSIVE PURPOSES.—The sums in the 

26 American Opportunity Fund shall not be approVerDate Sep 11 2014 07:27 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1041.IH H1041

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1 priated for any purpose other than the purposes 

2 specified in this section and may not be used for any 

3 other purpose. 

4 (d) TRANSFERS TO AMERICAN OPPORTUNITY

5 FUND.—The Secretary shall make transfers from the gen6 eral fund of the Treasury to the American Opportunity 

7 Fund as follows: 

8 (1) INITIAL CONTRIBUTION FOR ELIGIBLE INDI9 VIDUALS BORN AFTER DECEMBER 31, 2023.—Upon 

10 receipt of a certification under section 4(b)(2) with 

11 respect to an individual born after December 31, 

12 2023, the Secretary shall transfer $1,000 to the AO 

13 account of the individual. 

14 (2) ANNUAL CONTRIBUTIONS.— 

15 (A) IN GENERAL.—Each year which occurs 

16 after the year in which an AO account is estab17 lished for an eligible individual and before the 

18 year the eligible individual attains the age of 

19 18, the Secretary shall transfer the annual con20 tribution amount to the AO account of the indi21 vidual. 

22 (B) ANNUAL CONTRIBUTION AMOUNT.— 

23 The annual contribution amount shall be the 

24 amount such that the annual contribution 

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1 come is within an income tier specified in the 

2 following table shall decrease, on a sliding scale 

3 in a linear manner, from the initial amount to 

4 the final amount specified in such table for 

5 such income tier: 

In the case of household income 

(expressed as a percent of the poverty line) 

within the following income tier: 

The initial 

amount is— 

The final 

amount is— 

Up to 100 percent .................................................. $2,000 $2,000

100 percent up to 125 percent ............................... 2,000 1,500

125 percent up to 175 percent ............................... 1,500 1,000

175 percent up to 225 percent ............................... 1,000 500

225 percent up to 325 percent ............................... 500 250

325 percent up to 500 percent ............................... 250 0

500 percent or more ............................................... 0 0. 

6 (C) APPLICABLE HOUSEHOLD INCOME; 

7 POVERTY LINE.—For purposes of this para8 graph— 

9 (i) APPLICABLE HOUSEHOLD IN10 COME.—The term ‘‘applicable household 

11 income’’ means household income (as de12 fined in section 36B(d) of the Internal 

13 Revenue Code of 1986), except that— 

14 (I) with respect to any calendar 

15 year, the Secretary shall use the in16 come of the second calendar year pre17 ceding the calendar year for which the 

18 contribution relates; and 


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1 (II) in determining household in2 come the Secretary shall aggregate 

3 the income of married individuals fil4 ing separate tax returns. 

5 (ii) SPECIAL RULE FOR INDIVIDUALS

6 NOT FILING RETURNS.— 

7 (I) IN GENERAL.—In the case of 

8 any taxpayer who was not required to 

9 file a return of tax for the tax im10 posed by section 1 for the taxable 

11 year described in clause (i)(I) or for 

12 whom the information described in 

13 clause (i) is not available for such 

14 year, such taxpayer shall be treated as 

15 a taxpayer with a household income 

16 which is less than 100 percent of the 

17 poverty line. 

18 (II) USE OF OTHER DATA.—Sub19 clause (I) shall not apply if the Sec20 retary determines, based on such 

21 other information from any agency of 

22 the United States as the Secretary de23 termines is reliable, that the tax24 payer’s household income for such 


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1 year is 100 percent of the poverty line 

2 or greater. 

3 (iii) POVERTY LINE.—The term ‘‘pov4 erty line’’ has the meaning given such term 

5 under section 36B(d) of the Internal Rev6 enue Code of 1986. 

7 (D) AUTHORITY TO PROVIDE TAX INFOR8 MATION.— 

9 (i) IN GENERAL.—Section 6103(l) of 

10 the Internal Revenue Code of 1986 is 

11 amended by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

14 TO CARRY OUT ELIGIBILITY REQUIREMENTS FOR

15 CERTAIN PROGRAMS.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 disclose to officers and employees of the De18 partment of the Treasury or the American Op19 portunity Fund Board return information of 

20 any taxpayer whose income is relevant in deter21 mining any annual contribution to an American 

22 Opportunity Account under section 3 of the 

23 American Opportunity Accounts Act. Such re24 turn information shall be limited to— 


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1 ‘‘(i) taxpayer identity information 

2 with respect to such taxpayer, 

3 ‘‘(ii) the filing status of such tax4 payer, 

5 ‘‘(iii) the number of individuals for 

6 whom a deduction is allowed under section 

7 151 with respect to the taxpayer (including 

8 the taxpayer and the taxpayer’s spouse), 

9 ‘‘(iv) the modified adjusted gross in10 come (as defined in section 36B) of such 

11 taxpayer, of any spouse of such taxpayer 

12 who filed a separate return, and of each of 

13 the other individuals included under clause 

14 (iii) who are required to file a return of tax 

15 imposed by chapter 1 for the taxable year, 

16 ‘‘(v) such other information as is pre17 scribed by the Secretary by regulation as 

18 might indicate whether the taxpayer is eli19 gible for such an annual contribution (and 

20 the amount thereof), and 

21 ‘‘(vi) the taxable year with respect to 

22 which the preceding information relates or, 

23 if applicable, the fact that such informa24 tion is not available. 


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1 ‘‘(B) RESTRICTION ON USE OF DISCLOSED

2 INFORMATION.—Return information disclosed 

3 under subparagraph (A) may be used by offi4 cers and employees of the Department of the 

5 Treasury or the American Opportunity Fund 

6 Board for the purposes of, and to the extent 

7 necessary in establishing eligibility for, and 

8 verifying the appropriate amount of, any annual 

9 contribution described in subparagraph (A).’’. 

10 (ii) PROCEDURES AND RECORD11 KEEPING RELATED TO DISCLOSURES.— 

12 Paragraph (4) of section 6103(p) of such 

13 Code is amended by striking ‘‘or (22)’’ 

14 each place it appears and inserting ‘‘(22), 

15 or (23)’’. 

16 (E) STUDY ON INCORPORATION OF OTHER

17 WEALTH FACTORS.—Not later than 2 years 

18 after the date of the enactment of this Act, the 

19 Comptroller General shall submit to Congress 

20 and the Secretary of the Treasury a report on 

21 the feasibility and distributive impacts of a new 

22 measure for determining the amount of the an23 nual contribution amount under this paragraph 

24 based on family wealth, total assets, and overall 

25 net worth. Such measure may— 


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1 (i) include financial assets, the value 

2 of family home, retirement accounts, busi3 ness and entrepreneurial ventures, poten4 tial future inheritances, and any other as5 sets or debts; and 

6 (ii) continue to factor in current or 

7 past income to the extent such information 

8 is useful in estimating overall household 

9 wealth. 

10 (3) ADJUSTMENT FOR INFLATION.— 

11 (A) IN GENERAL.—For each calendar year 

12 beginning after 2024, each of the dollar 

13 amounts under paragraphs (1) and (2)(B)(i) 

14 shall be increased by such dollar amount multi15 plied by the cost-of-living adjustment deter16 mined under section 1(f)(3) of the Internal 

17 Revenue Code of 1986 determined by sub18 stituting ‘‘calendar year 2023’’ for ‘‘calendar 

19 year 2016’’ in subparagraph (A)(ii) thereof. 

20 (B) ROUNDING.—If any amount adjusted 

21 under paragraph (1) is not a multiple of $50, 

22 such amount shall be rounded to the next low23 est multiple of $50. 

24 (e) PROHIBITION ON USE OF PAYROLL TAXES TO

25 FUND AO ACCOUNTS.—The American Opportunity Fund 


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1 and AO accounts are wholly separate and unique from the 

2 Social Security system. No amount from any tax on em3 ployment may be contributed to the American Opportunity 

4 Fund or AO accounts. 

5 SEC. 4. AO ACCOUNTS. 

6 (a) IN GENERAL.— 

7 (1) ESTABLISHMENT.—The Executive Director 

8 shall establish in the American Opportunity Fund an 

9 account (to be known as an ‘‘American Opportunity 

10 account’’ or an ‘‘AO account’’) for each eligible indi11 vidual certified under subsection (b). Each such ac12 count shall be identified to its account holder by 

13 means of a unique personal identifier currently rec14 ognized by the Internal Revenue Service and shall 

15 remain in the American Opportunity Fund. 

16 (2) ACCOUNT BALANCE.—The balance in an ac17 count holder’s AO account at any time is the excess 

18 of— 

19 (A) the sum of— 

20 (i) all deposits made into the Amer21 ican Opportunity Fund and credited to the 

22 account under paragraph (3); and 

23 (ii) the total amount of allocations 

24 made to and reductions made in the ac25 count pursuant to paragraph (4); over 


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1 (B) the amounts paid out of the account 

2 with respect to such individual under subsection 

3 (c). 

4 (3) CREDITING OF CONTRIBUTIONS.—Pursuant 

5 to regulations which shall be prescribed by the Exec6 utive Director, the Executive Director shall credit to 

7 each AO account the amounts paid into the Amer8 ican Opportunity Fund under section 3(d) which are 

9 attributable to the account holder of such account. 

10 (4) ALLOCATION OF EARNINGS AND LOSSES.— 

11 The Executive Director shall allocate to each AO ac12 count an amount equal to the net earnings and net 

13 losses from each investment of sums in the Amer14 ican Opportunity Fund which are attributable, on a 

15 pro rata basis, to sums credited to such account, re16 duced by an appropriate share of the administrative 

17 expenses paid out of the net earnings, as determined 

18 by the Executive Director. 

19 (b) ELIGIBLE INDIVIDUAL.—For purposes of this 

20 title— 

21 (1) IN GENERAL.—The term ‘‘eligible indi22 vidual’’ means any individual who— 

23 (A) was born after December 31, 2005; 

24 (B) has not yet attained the age of 18 

25 years; and 


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1 (C) has a valid, unique, Federal Govern2 ment issued identification number recognized by 

3 the Internal Revenue Service. 

4 (2) CERTIFICATION OF ACCOUNT HOLDERS.— 

5 (A) AUTOMATIC CERTIFICATION FOR CER6 TAIN INDIVIDUALS BORN AFTER DECEMBER 31, 

7 2023.—On any date after December 31, 2023, 

8 on which an eligible individual is issued a social 

9 security account number under section 

10 203(c)(2) of the Social Security Act, the Com11 missioner of Social Security shall certify to the 

12 Executive Director and the Secretary of the 

13 Treasury the name of, and social security num14 ber issued to, such eligible individual. 

15 (B) OTHER INDIVIDUALS.—In the case of 

16 an eligible individual who is not certified under 

17 subparagraph (A), such individual may request 

18 the establishment an AO account under this 

19 subparagraph by application to the Executive 

20 Director, and the Executive Director shall cer21 tify such individual under this subparagraph. 

22 (c) RESTRICTIONS ON DISTRIBUTIONS.— 

23 (1) AGE-RELATED RESTRICTIONS.— 

24 (A) IN GENERAL.—Except as otherwise 

25 provided in this paragraph, no amount may be 


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1 distributed from an AO account before the date 

2 on which the account holder attains the age of 

3 18. 

4 (B) HIGHER EDUCATION EXPENSES.— 

5 Subparagraph (A) shall not apply to amounts 

6 paid for qualified tuition and related expenses 

7 (as defined in section 25A(f)(1) of the Internal 

8 Revenue Code of 1986) of the account holder if 

9 the account holder is an eligible student (as de10 fined in section 25A(b)(3) of such Code) with 

11 respect to such expenses. 

12 (C) AUTHORITY TO PROVIDE HIGHER AGE

13 LIMIT FOR CERTAIN DISTRIBUTIONS.—The Sec14 retary, in consultation with the American Op15 portunity Fund Advisory Board, may by regula16 tions provide for a higher age limitation with 

17 respects to distributions relating to certain cat18 egories of qualified expenses if the Secretary de19 termines that such higher age limitation is ap20 propriate. 

21 (2) USE-RELATED RESTRICTIONS.— 

22 (A) IN GENERAL.—No amount may be dis23 tributed from an AO account unless the account 

24 holder establishes, under rules established by 

25 the Executive Director in consultation with the 


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1 American Opportunity Fund Advisory Board, 

2 that such amount shall be used for a qualified 

3 expense. 

4 (B) QUALIFIED EXPENSE.—For purposes 

5 of this subsection— 

6 (i) IN GENERAL.—The term ‘‘qualified 

7 expense’’ means expenses for any of the 

8 following: 

9 (I) Education of the account 

10 holder at— 

11 (aa) an institution of higher 

12 education (as defined in section 

13 101 of the Higher Education Act 

14 of 1965 (20 U.S.C. 1001)); or 

15 (bb) an area career and 

16 technical education school (as de17 fined in section 3 of the Carl D. 

18 Perkins Career and Technical 

19 Education Act of 2006 (20 

20 U.S.C. 2302)). 

21 (II) Ownership of a home by the 

22 account holder. 

23 (III) Any expenses paid or in24 curred on or after the date on which 

the account holder attains age 591 25 ⁄2. 


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1 (IV) Any other investment in fi2 nancial assets or personal capital that 

3 provides long-term gains to wages and 

4 wealth, as established under regula5 tions promulgated by the Secretary, in 

6 consultation with the Executive Direc7 tor and the American Opportunity 

8 Fund Advisory Board. 

9 (ii) EXCEPTION.—Such term shall not 

10 include any expense described in clause (i) 

11 which is paid to a person who does not 

12 meet such standards as are prescribed by 

13 the Secretary, in consultation with the Ex14 ecutive Director and the American Oppor15 tunity Fund Advisory Board. 

16 (3) AMERICAN OPPORTUNITY ACCOUNT ADVI17 SORY BOARD.—For purposes of this subsection, the 

18 term ‘‘American Opportunity Fund Advisory Board’’ 

19 means an advisory board established by the Sec20 retary consisting of individuals with expertise in sav21 ings and asset-building, home financing, education 

22 financing, consumer financial protection, and such 

23 other areas as the Secretary may determine appro24 priate. 


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1 SEC. 5. ASSIGNMENT, ALIENATION, AND TREATMENT OF 

2 DECEASED INDIVIDUALS. 

3 (a) ASSIGNMENT AND ALIENATION.—Under regula4 tions which shall be prescribed by the Executive Director, 

5 rules relating to assignment and alienation applicable 

6 under chapter 84 of title 5, United States Code, with re7 spect to amounts held in accounts in the Thrift Savings 

8 Fund shall apply with respect to amounts held in AO ac9 counts in the American Opportunity Fund. 

10 (b) TREATMENT OF ACCOUNTS OF DECEASED INDI11 VIDUALS.—In the case of a deceased account holder of an 

12 AO account which has an account balance greater than 

13 zero, upon receipt of notification of such individual’s 

14 death, the Executive Director shall close the account and 

15 shall transfer the balance in such account to the AO ac16 count of such account holder’s surviving spouse or, if there 

17 is no such account of a surviving spouse, to the duly ap18 pointed legal representative of the estate of the deceased 

19 account holder, or if there is no such representative, to 

20 the person or persons determined to be entitled thereto 

21 under the laws of the domicile of the deceased account 

22 holder. 

23 SEC. 6. RULES GOVERNING AO ACCOUNTS RELATING TO IN24 VESTMENT, ACCOUNTING, AND REPORTING. 

25 (a) INVESTMENT PROGRAM.— 


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1 (1) IN GENERAL.—The American Opportunity 

2 Fund Board shall invest amounts in the American 

3 Opportunity Fund in securities of the United States 

4 Government issued as provided in paragraph (2). 

5 (2) SECURITIES.— 

6 (A) IN GENERAL.—The Secretary of the 

7 Treasury is authorized to issue special interest8 bearing obligations of the United States for 

9 purchase by the American Opportunity Fund. 

10 (B) INVESTMENT.— 

11 (i) Obligations issued for the purpose 

12 of this paragraph shall have maturities 

13 fixed with due regard to the needs of the 

14 American Opportunity Fund as determined 

15 by the Executive Director, and shall bear 

16 interest at a rate equal to the average mar17 ket yield (computed by the Secretary of the 

18 Treasury on the basis of market quotations 

19 as of the end of the calendar month next 

20 preceding the date of issue of such obliga21 tions) on all marketable interest-bearing 

22 obligations of the United States then form23 ing a part of the public debt which are not 

24 due or callable earlier than 10 years after 

25 the end of such calendar month. 


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1 (ii) Any average market yield com2 puted under clause (i) which is not a mul3 tiple of one-eighth of 1 percent, shall be 

4 rounded to the nearest multiple of one5 eighth of 1 percent. 

6 (b) INDEPENDENT PUBLIC ACCOUNTANT.— 

7 (1) IN GENERAL.—Under regulations which 

8 shall be prescribed by the Executive Director, and 

9 subject to the provisions of this title, section 8439(b) 

10 of title 5, United States Code (relating to engage11 ment of independent qualified public accountant), 

12 shall apply with respect to the American Oppor13 tunity Fund and accounts maintained in such Fund 

14 in the same manner and to the same extent as such 

15 section relates to the Thrift Savings Fund and the 

16 accounts maintained in the Thrift Savings Fund. 

17 (2) APPLICATION RULES.—For purposes of 

18 paragraph (1), references in such section 8439(b) to 

19 an employee, Member, former employee, or former 

20 Member shall be deemed references to an account 

21 holder of an AO account in the American Oppor22 tunity Fund. 

23 (c) CONFIDENTIALITY AND DISCLOSURE.— 

24 (1) IN GENERAL.—Except as otherwise author25 ized by Federal law, the American Opportunity 


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1 Fund Board, the Executive Director, and any em2 ployee of the American Opportunity Fund Board 

3 shall not disclose information with respect to the 

4 American Opportunity Fund or any account main5 tained in such Fund. 

6 (2) DISCLOSURE TO DESIGNEE OF BENE7 FICIARY.—The Executive Director may, subject to 

8 such requirements and conditions as he may pre9 scribe by regulations, disclose such information with 

10 respect to the AO account of the beneficiary to such 

11 person or persons as the beneficiary may designate 

12 in a request for or consent to such disclosure, or to 

13 any other person at the beneficiary’s request to the 

14 extent necessary to comply with a request for infor15 mation or assistance made by the beneficiary to such 

16 other person. 

17 SEC. 7. AMERICAN OPPORTUNITY FUND BOARD. 

18 (a) IN GENERAL.—There is established in the execu19 tive branch of the Government an American Opportunity 

20 Fund Board. 

21 (b) COMPOSITION, DUTIES, AND RESPONSIBIL22 ITIES.—Subject to the provisions of this title, the following 

23 provisions shall apply with respect to the American Oppor24 tunity Fund Board in the same manner and to the same 


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1 extent as such provisions relate to the Federal Retirement 

2 Thrift Investment Board: 

3 (1) Section 8472 of title 5, United States Code 

4 (relating to composition of Federal Retirement 

5 Thrift Investment Board). 

6 (2) Section 8474 of such title (relating to Exec7 utive Director). 

8 (3) Section 8476 of such title (relating to ad9 ministrative provisions). 

10 SEC. 8. FIDUCIARY RESPONSIBILITIES. 

11 (a) IN GENERAL.—Under regulations of the Sec12 retary of Labor, the provisions of sections 8477 and 8478 

13 of title 5, United States Code, shall apply in connection 

14 with the American Opportunity Fund and the accounts 

15 maintained in such Fund in the same manner and to the 

16 same extent as such provisions apply in connection with 

17 the Thrift Savings Fund and the accounts maintained in 

18 the Thrift Savings Fund. 

19 (b) INVESTIGATIVE AUTHORITY.—Any authority 

20 available to the Secretary of Labor under section 504 of 

21 the Employee Retirement Income Security Act of 1974 

22 (29 U.S.C. 1134) is hereby made available to the Sec23 retary of Labor, and any officer designated by the Sec24 retary of Labor, to determine whether any person has vioVerDate Sep 11 2014 07:27 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H1041.IH H1041

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1 lated, or is about to violate, any provision applicable under 

2 subsection (a). 

3 (c) EXCULPATORY PROVISIONS; INSURANCE.— 

4 (1) IN GENERAL.—Any provision in an agree5 ment or instrument which purports to relieve a fidu6 ciary from responsibility or liability for any responsi7 bility, obligation, or duty under this title shall be 

8 void. 

9 (2) INSURANCE.—Amounts in the American 

10 Opportunity Fund available for administrative ex11 penses shall be available and may be used at the dis12 cretion of the Executive Director to purchase insur13 ance to cover potential liability of persons who serve 

14 in a fiduciary capacity with respect to the Fund and 

15 accounts maintained therein, without regard to 

16 whether a policy of insurance permits recourse by 

17 the insurer against the fiduciary in the case of a 

18 breach of a fiduciary obligation. 

19 SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGI20 BILITY FOR FEDERAL BENEFITS. 

21 Amounts in any AO account shall not be taken into 

22 account in determining any individual’s or household’s fi23 nancial eligibility for, or amount of, any benefit or service, 

24 paid for in whole or in part with Federal funds, including 

25 student financial aid. 


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1 SEC. 10. REPORTS. 

2 (a) REPORTS TO CONGRESS.—The Executive Direc3 tor, in consultation with the Secretary, shall annually 

4 transmit a written report to the Congress. Such report 

5 shall include— 

6 (1) a detailed description of the status and op7 eration of the American Opportunity Fund and the 

8 management of the AO accounts; and 

9 (2) a detailed accounting of the administrative 

10 expenses in carrying out this title, including the 

11 ratio of such administrative expenses to the balance 

12 of the American Opportunity Fund and the method13 ology adopted by the Executive Director for allo14 cating such expenses among the AO accounts. 

15 (b) REPORTS TO ACCOUNT HOLDERS.—The Amer16 ican Opportunity Fund Board shall prescribe regulations 

17 under which each individual for whom an AO account is 

18 maintained shall be furnished with an annual statement 

19 relating to the individual’s account, which shall include— 

20 (1) a statement of the balance of individual’s 

21 AO account; 

22 (2) a projection of the account’s growth by the 

23 time the individual attains the age of 18; and 

24 (3) such other information as the Secretary 

25 deems relevant. 


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1 SEC. 11. PROGRAMS FOR PROMOTING FINANCIAL CAPA2 BILITY. 

3 The Secretary of the Treasury, in coordination with 

4 the Financial Literacy and Education Commission, shall 

5 develop programs to promote the financial capability of 

6 account holders of AO accounts. 

7 SEC. 12. TAX TREATMENT. 

8 (a) CONTRIBUTIONS AND DISTRIBUTIONS.—Part III 

9 of subchapter B of chapter 1 of the Internal Revenue Code 

10 of 1986 is amended by inserting after section 139I the 

11 following new section: 

12 ‘‘SEC. 139J. CONTRIBUTIONS TO AND DISTRIBUTIONS FROM 

13 AO ACCOUNTS. 

14 ‘‘Gross income shall not include— 

15 ‘‘(1) any contribution credited to the AO ac16 count of the taxpayer under section 4(a)(3) of the 

17 American Opportunity Accounts Act, and 

18 ‘‘(2) any distribution from such an AO ac19 count.’’. 

20 (b) TAX TREATMENT OF EARNINGS AND DISTRIBU21 TIONS.—Subchapter F of chapter 1 of the Internal Rev22 enue Code of 1986 is amended by adding at the end the 

23 following new part: 

24 ‘‘PART IX—AMERICAN OPPORTUNITY FUND AND 

25 AO ACCOUNTS 

‘‘Sec. 530A. American Opportunity Fund and AO accounts. 


kjohnson on DSK79L0C42PROD with BILLS
25 

•HR 1041 IH

1 ‘‘SEC. 530A. AMERICAN OPPORTUNITY FUND AND AO AC2 COUNTS. 

3 ‘‘(a) GENERAL RULE.—The American Opportunity 

4 Fund and AO accounts shall be exempt from taxation 

5 under this subtitle. Notwithstanding the preceding sen6 tence, a AO account shall be subject to the taxes imposed 

7 by section 511 (relating to imposition of tax on unrelated 

8 business income of charitable organizations). 

9 ‘‘(b) DEFINITIONS.—For purposes of this section, the 

10 terms ‘American Opportunity Fund’ and ‘AO account’ 

11 have the meanings given such terms under the American 

12 Opportunity Accounts Act.’’. 

13 (c) CONFORMING AMENDMENTS.— 

14 (1) The table of sections for part III of sub15 chapter B of chapter 1 of the Internal Revenue Code 

16 of 1986 is amended by inserting after the item re17 lated to section 139I the following new item: 

‘‘Sec. 139J. Contributions to and distributions from AO accounts.’’. 

18 (2) The table of parts for subchapter F of 

19 chapter 1 of such Code is amended by adding at the 

20 end the following new item: 

‘‘PART IX—AMERICAN OPPORTUNITY FUND AND AO ACCOUNTS’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2023. 

Æ 


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