II 

117TH CONGRESS 

1ST SESSION S. 222 

To establish American opportunity accounts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 4, 2021 

Mr. BOOKER (for himself, Ms. BALDWIN, Mr. SCHUMER, Mrs. GILLIBRAND, 

Mr. COONS, Mr. MERKLEY, Mr. MARKEY, Mr. VAN HOLLEN, Mr. 

BROWN, Mr. HEINRICH, Mr. SCHATZ, Ms. WARREN, Mr. SANDERS, Mr. 

DURBIN, and Ms. KLOBUCHAR) introduced the following bill; which was 

read twice and referred to the Committee on Finance 

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: 

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. 


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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. 

18 SEC. 3. AMERICAN OPPORTUNITY FUND. 

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

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

21 ‘‘American Opportunity Fund’’. 


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1 (b) AMOUNTS HELD BY FUND.—The American Op2 portunity Fund consists of the sum of all amounts paid 

3 into the Fund under this title, increased by the total net 

4 earnings from investments of sums held in the Fund or 

5 reduced by the total net losses from investments of sums 

6 held in the Fund, and reduced by the total amount of pay7 ments made from the Fund (including payments for ad8 ministrative expenses). 

9 (c) USE OF FUND.— 

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

11 Opportunity Fund are appropriated and shall re12 main available without fiscal year limitation— 

13 (A) to make contributions to AO accounts; 

14 (B) to invest under section 6; 

15 (C) to make distributions in accordance 

16 with this title; 

17 (D) to pay the administrative expenses of 

18 carrying out this title; and 

19 (E) to purchase insurance as provided in 

20 section 8(c)(2). 

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

22 American Opportunity Fund shall not be appro23 priated for any purpose other than the purposes 

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

25 other purpose. 


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1 (d) TRANSFERS TO AMERICAN OPPORTUNITY

2 FUND.—The Secretary shall make transfers from the gen3 eral fund of the Treasury to the American Opportunity 

4 Fund as follows: 

5 (1) INITIAL CONTRIBUTION FOR ELIGIBLE INDI6 VIDUALS BORN AFTER DECEMBER 31, 2021.—Upon 

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

8 respect to an individual born after December 31, 

9 2021, the Secretary shall transfer $1,000 to the AO 

10 account of the individual. 

11 (2) ANNUAL CONTRIBUTIONS.— 

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

13 after the year in which an AO account is estab14 lished for an eligible individual and before the 

15 year the eligible individual attains the age of 

16 18, the Secretary shall transfer the annual con17 tribution amount to the AO account of the indi18 vidual. 

19 (B) ANNUAL CONTRIBUTION AMOUNT.— 

20 The annual contribution amount shall be the 

21 amount such that the annual contribution 

22 amount for any taxpayer whose household in23 come is within an income tier specified in the 

24 following table shall decrease, on a sliding scale 

25 in a linear manner, from the initial amount to 


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1 the final amount specified in such table for 

2 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. 

3 (C) APPLICABLE HOUSEHOLD INCOME; 

4 POVERTY LINE.—For purposes of this para5 graph— 

6 (i) APPLICABLE HOUSEHOLD IN7 COME.—The term ‘‘applicable household 

8 income’’ means household income (as de9 fined in section 36B(d) of the Internal 

10 Revenue Code of 1986), except that— 

11 (I) with respect to any calendar 

12 year, the Secretary shall use the in13 come of the second calendar year pre14 ceding the calendar year for which the 

15 contribution relates; and 

16 (II) in determining household in17 come the Secretary shall aggregate 

18 the income of married individuals fil19 ing separate tax returns. 


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1 (ii) SPECIAL RULE FOR INDIVIDUALS

2 NOT FILING RETURNS.— 

3 (I) IN GENERAL.—In the case of 

4 any taxpayer who was not required to 

5 file a return of tax for the tax im6 posed by section 1 for the taxable 

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

8 whom the information described in 

9 clause (i) is not available for such 

10 year, such taxpayer shall be treated as 

11 a taxpayer with a household income 

12 which is less than 100 percent of the 

13 poverty line. 

14 (II) USE OF OTHER DATA.—Sub15 clause (I) shall not apply if the Sec16 retary determines, based on such 

17 other information from any agency of 

18 the United States as the Secretary de19 termines is reliable, that the tax20 payer’s household income for such 

21 year is 100 percent of the poverty line 

22 or greater. 

23 (iii) POVERTY LINE.—The term ‘‘pov24 erty line’’ has the meaning given such term 


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1 under section 36B(d) of the Internal Rev2 enue Code of 1986. 

3 (D) AUTHORITY TO PROVIDE TAX INFOR4 MATION.— 

5 (i) IN GENERAL.—Section 6103(l) of 

6 the Internal Revenue Code of 1986 is 

7 amended by adding at the end the fol8 lowing new paragraph: 

9 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

10 TO CARRY OUT ELIGIBILITY REQUIREMENTS FOR

11 CERTAIN PROGRAMS.— 

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

13 disclose to officers and employees of the De14 partment of the Treasury or the American Op15 portunity Fund Board return information of 

16 any taxpayer whose income is relevant in deter17 mining any annual contribution to an American 

18 Opportunity Account under section 3 of the 

19 American Opportunity Accounts Act. Such re20 turn information shall be limited to— 

21 ‘‘(i) taxpayer identity information 

22 with respect to such taxpayer, 

23 ‘‘(ii) the filing status of such tax24 payer, 


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1 ‘‘(iii) the number of individuals for 

2 whom a deduction is allowed under section 

3 151 with respect to the taxpayer (including 

4 the taxpayer and the taxpayer’s spouse), 

5 ‘‘(iv) the modified adjusted gross in6 come (as defined in section 36B) of such 

7 taxpayer, of any spouse of such taxpayer 

8 who filed a separate return, and of each of 

9 the other individuals included under clause 

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

11 imposed by chapter 1 for the taxable year, 

12 ‘‘(v) such other information as is pre13 scribed by the Secretary by regulation as 

14 might indicate whether the taxpayer is eli15 gible for such an annual contribution (and 

16 the amount thereof), and 

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

18 which the preceding information relates or, 

19 if applicable, the fact that such informa20 tion is not available. 

21 ‘‘(B) RESTRICTION ON USE OF DISCLOSED

22 INFORMATION.—Return information disclosed 

23 under subparagraph (A) may be used by offi24 cers and employees of the Department of the 

25 Treasury or the American Opportunity Fund 


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1 Board for the purposes of, and to the extent 

2 necessary in establishing eligibility for, and 

3 verifying the appropriate amount of, any annual 

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

5 (ii) PROCEDURES AND RECORD6 KEEPING RELATED TO DISCLOSURES.— 

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

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

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

10 or (23)’’. 

11 (E) STUDY ON INCORPORATION OF OTHER

12 WEALTH FACTORS.—Not later than 2 years 

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

14 Comptroller General shall submit to Congress 

15 and the Secretary of the Treasury a report on 

16 the feasibility and distributive impacts of a new 

17 measure for determining the amount of the an18 nual contribution amount under this paragraph 

19 based on family wealth, total assets, and overall 

20 net worth. Such measure may— 

21 (i) include financial assets, the value 

22 of family home, retirement accounts, busi23 ness and entrepreneurial ventures, poten24 tial future inheritances, and any other as25 sets or debts; and 


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1 (ii) continue to factor in current or 

2 past income to the extent such information 

3 is useful in estimating overall household 

4 wealth. 

5 (3) ADJUSTMENT FOR INFLATION.— 

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

7 beginning after 2022, each of the dollar 

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

9 shall be increased by such dollar amount multi10 plied by the cost-of-living adjustment deter11 mined under section 1(f)(3) of the Internal 

12 Revenue Code of 1986 determined by sub13 stituting ‘‘calendar year 2021’’ for ‘‘calendar 

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

15 (B) ROUNDING.—If any amount adjusted 

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

17 such amount shall be rounded to the next low18 est multiple of $50. 

19 (e) PROHIBITION ON USE OF PAYROLL TAXES TO

20 FUND AO ACCOUNTS.—The American Opportunity Fund 

21 and AO accounts are wholly separate and unique from the 

22 Social Security system. No amount from any tax on em23 ployment may be contributed to the American Opportunity 

24 Fund or AO accounts. 


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1 SEC. 4. AO ACCOUNTS. 

2 (a) IN GENERAL.— 

3 (1) ESTABLISHMENT.—The Executive Director 

4 shall establish in the American Opportunity Fund an 

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

6 account’’ or an ‘‘AO account’’) for each eligible indi7 vidual certified under subsection (b). Each such ac8 count shall be identified to its account holder by 

9 means of a unique personal identifier currently rec10 ognized by the Internal Revenue Service and shall 

11 remain in the American Opportunity Fund. 

12 (2) ACCOUNT BALANCE.—The balance in an ac13 count holder’s AO account at any time is the excess 

14 of— 

15 (A) the sum of— 

16 (i) all deposits made into the Amer17 ican Opportunity Fund and credited to the 

18 account under paragraph (3); and 

19 (ii) the total amount of allocations 

20 made to and reductions made in the ac21 count pursuant to paragraph (4); over 

22 (B) the amounts paid out of the account 

23 with respect to such individual under subsection 

24 (c). 

25 (3) CREDITING OF CONTRIBUTIONS.—Pursuant 

26 to regulations which shall be prescribed by the ExecVerDate Sep 11 2014 19:22 Feb 21, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S222.IS S222

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1 utive Director, the Executive Director shall credit to 

2 each AO account the amounts paid into the Amer3 ican Opportunity Fund under section 3(d) which are 

4 attributable to the account holder of such account. 

5 (4) ALLOCATION OF EARNINGS AND LOSSES.— 

6 The Executive Director shall allocate to each AO ac7 count an amount equal to the net earnings and net 

8 losses from each investment of sums in the Amer9 ican Opportunity Fund which are attributable, on a 

10 pro rata basis, to sums credited to such account, re11 duced by an appropriate share of the administrative 

12 expenses paid out of the net earnings, as determined 

13 by the Executive Director. 

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

15 title— 

16 (1) IN GENERAL.—The term ‘‘eligible indi17 vidual’’ means any individual who— 

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

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

20 years; and 

21 (C) has a valid, unique, Federal Govern22 ment issued identification number recognized by 

23 the Internal Revenue Service. 

24 (2) CERTIFICATION OF ACCOUNT HOLDERS.— 


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1 (A) AUTOMATIC CERTIFICATION FOR CER2 TAIN INDIVIDUALS BORN AFTER DECEMBER 31, 

3 2021.—On any date after December 31, 2021, 

4 on which an eligible individual is issued a social 

5 security account number under section 

6 203(c)(2) of the Social Security Act, the Com7 missioner of Social Security shall certify to the 

8 Executive Director and the Secretary of the 

9 Treasury the name of, and social security num10 ber issued to, such eligible individual. 

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

12 an eligible individual who is not certified under 

13 subparagraph (A), such individual may request 

14 the establishment an AO account under this 

15 subparagraph by application to the Executive 

16 Director, and the Executive Director shall cer17 tify such individual under this subparagraph. 

18 (c) RESTRICTIONS ON DISTRIBUTIONS.— 

19 (1) AGE-RELATED RESTRICTIONS.— 

20 (A) IN GENERAL.—Except as otherwise 

21 provided in this paragraph, no amount may be 

22 distributed from an AO account before the date 

23 on which the account holder attains the age of 

24 18. 


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1 (B) HIGHER EDUCATION EXPENSES.— 

2 Subparagraph (A) shall not apply to amounts 

3 paid for qualified tuition and related expenses 

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

5 Revenue Code of 1986) of the account holder if 

6 the account holder is an eligible student (as de7 fined in section 25A(b)(3) of such Code) with 

8 respect to such expenses. 

9 (C) AUTHORITY TO PROVIDE HIGHER AGE

10 LIMIT FOR CERTAIN DISTRIBUTIONS.—The Sec11 retary, in consultation with the American Op12 portunity Fund Advisory Board, may by regula13 tions provide for a higher age limitation with 

14 respect to distributions relating to certain cat15 egories of qualified expenses if the Secretary de16 termines that such higher age limitation is ap17 propriate. 

18 (2) USE-RELATED RESTRICTIONS.— 

19 (A) IN GENERAL.—No amount may be dis20 tributed from an AO account unless the account 

21 holder establishes, under rules established by 

22 the Executive Director in consultation with the 

23 American Opportunity Fund Advisory Board, 

24 that such amount shall be used for a qualified 

25 expense. 


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1 (B) QUALIFIED EXPENSE.—For purposes 

2 of this subsection— 

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

4 expense’’ means expenses for any of the 

5 following: 

6 (I) Education of the account 

7 holder at— 

8 (aa) an institution of higher 

9 education (as defined in section 

10 101 of the Higher Education Act 

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

12 (bb) an area career and 

13 technical education school (as de14 fined in section 3 of the Carl D. 

15 Perkins Career and Technical 

16 Education Act of 2006 (20 

17 U.S.C. 2302)). 

18 (II) Ownership of a home by the 

19 account holder. 

20 (III) Any expenses paid or in21 curred on or after the date on which 

the account holder attains age 591 22 ⁄2. 

23 (IV) Any other investment in fi24 nancial assets or personal capital that 

25 provides long-term gains to wages and 


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1 wealth, as established under regula2 tions promulgated by the Secretary, in 

3 consultation with the Executive Direc4 tor and the American Opportunity 

5 Fund Advisory Board. 

6 (ii) EXCEPTION.—Such term shall not 

7 include any expense described in clause (i) 

8 which is paid to a person who does not 

9 meet such standards as are prescribed by 

10 the Secretary, in consultation with the Ex11 ecutive Director and the American Oppor12 tunity Fund Advisory Board. 

13 (3) AMERICAN OPPORTUNITY ACCOUNT ADVI14 SORY BOARD.—For purposes of this subsection, the 

15 term ‘‘American Opportunity Fund Advisory Board’’ 

16 means an advisory board established by the Sec17 retary consisting of individuals with expertise in sav18 ings and asset-building, home financing, education 

19 financing, consumer financial protection, and such 

20 other areas as the Secretary may determine appro21 priate. 

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

23 DECEASED INDIVIDUALS. 

24 (a) ASSIGNMENT AND ALIENATION.—Under regula25 tions which shall be prescribed by the Executive Director, 


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1 rules relating to assignment and alienation applicable 

2 under chapter 84 of title 5, United States Code, with re3 spect to amounts held in accounts in the Thrift Savings 

4 Fund shall apply with respect to amounts held in AO ac5 counts in the American Opportunity Fund. 

6 (b) TREATMENT OF ACCOUNTS OF DECEASED INDI7 VIDUALS.—In the case of a deceased account holder of an 

8 AO account which has an account balance greater than 

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

10 death, the Executive Director shall close the account and 

11 shall transfer the balance in such account to the AO ac12 count of such account holder’s surviving spouse or, if there 

13 is no such account of a surviving spouse, to the duly ap14 pointed legal representative of the estate of the deceased 

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

16 the person or persons determined to be entitled thereto 

17 under the laws of the domicile of the deceased account 

18 holder. 

19 SEC. 6. RULES GOVERNING AO ACCOUNTS RELATING TO IN20 VESTMENT, ACCOUNTING, AND REPORTING. 

21 (a) INVESTMENT PROGRAM.— 

22 (1) IN GENERAL.—The American Opportunity 

23 Fund Board shall invest amounts in the American 

24 Opportunity Fund in securities of the United States 

25 Government issued as provided in paragraph (2). 


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1 (2) SECURITIES.— 

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

3 Treasury is authorized to issue special interest4 bearing obligations of the United States for 

5 purchase by the American Opportunity Fund. 

6 (B) INVESTMENT.— 

7 (i) Obligations issued for the purpose 

8 of this paragraph shall have maturities 

9 fixed with due regard to the needs of the 

10 American Opportunity Fund as determined 

11 by the Executive Director, and shall bear 

12 interest at a rate equal to the average mar13 ket yield (computed by the Secretary of the 

14 Treasury on the basis of market quotations 

15 as of the end of the calendar month next 

16 preceding the date of issue of such obliga17 tions) on all marketable interest-bearing 

18 obligations of the United States then form19 ing a part of the public debt which are not 

20 due or callable earlier than 10 years after 

21 the end of such calendar month. 

22 (ii) Any average market yield com23 puted under clause (i) which is not a mul24 tiple of one-eighth of 1 percent, shall be 


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1 rounded to the nearest multiple of one2 eighth of 1 percent. 

3 (b) INDEPENDENT PUBLIC ACCOUNTANT.— 

4 (1) IN GENERAL.—Under regulations which 

5 shall be prescribed by the Executive Director, and 

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

7 of title 5, United States Code (relating to engage8 ment of independent qualified public accountant), 

9 shall apply with respect to the American Oppor10 tunity Fund and accounts maintained in such Fund 

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

12 section relates to the Thrift Savings Fund and the 

13 accounts maintained in the Thrift Savings Fund. 

14 (2) APPLICATION RULES.—For purposes of 

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

16 an employee, Member, former employee, or former 

17 Member shall be deemed references to an account 

18 holder of an AO account in the American Oppor19 tunity Fund. 

20 (c) CONFIDENTIALITY AND DISCLOSURE.— 

21 (1) IN GENERAL.—Except as otherwise author22 ized by Federal law, the American Opportunity 

23 Fund Board, the Executive Director, and any em24 ployee of the American Opportunity Fund Board 

25 shall not disclose information with respect to the 


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1 American Opportunity Fund or any account main2 tained in such Fund. 

3 (2) DISCLOSURE TO DESIGNEE OF BENE4 FICIARY.—The Executive Director may, subject to 

5 such requirements and conditions as he may pre6 scribe by regulations, disclose such information with 

7 respect to the AO account of the beneficiary to such 

8 person or persons as the beneficiary may designate 

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

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

11 extent necessary to comply with a request for infor12 mation or assistance made by the beneficiary to such 

13 other person. 

14 SEC. 7. AMERICAN OPPORTUNITY FUND BOARD. 

15 (a) IN GENERAL.—There is established in the execu16 tive branch of the Government an American Opportunity 

17 Fund Board. 

18 (b) COMPOSITION, DUTIES, AND RESPONSIBIL19 ITIES.—Subject to the provisions of this title, the following 

20 provisions shall apply with respect to the American Oppor21 tunity Fund Board in the same manner and to the same 

22 extent as such provisions relate to the Federal Retirement 

23 Thrift Investment Board: 


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

2 (relating to composition of Federal Retirement 

3 Thrift Investment Board). 

4 (2) Section 8474 of such title (relating to Exec5 utive Director). 

6 (3) Section 8476 of such title (relating to ad7 ministrative provisions). 

8 SEC. 8. FIDUCIARY RESPONSIBILITIES. 

9 (a) IN GENERAL.—Under regulations of the Sec10 retary of Labor, the provisions of sections 8477 and 8478 

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

12 with the American Opportunity Fund and the accounts 

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

14 same extent as such provisions apply in connection with 

15 the Thrift Savings Fund and the accounts maintained in 

16 the Thrift Savings Fund. 

17 (b) INVESTIGATIVE AUTHORITY.—Any authority 

18 available to the Secretary of Labor under section 504 of 

19 the Employee Retirement Income Security Act of 1974 

20 (29 U.S.C. 1134) is hereby made available to the Sec21 retary of Labor, and any officer designated by the Sec22 retary of Labor, to determine whether any person has vio23 lated, or is about to violate, any provision applicable under 

24 subsection (a). 

25 (c) EXCULPATORY PROVISIONS; INSURANCE.— 


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1 (1) IN GENERAL.—Any provision in an agree2 ment or instrument which purports to relieve a fidu3 ciary from responsibility or liability for any responsi4 bility, obligation, or duty under this title shall be 

5 void. 

6 (2) INSURANCE.—Amounts in the American 

7 Opportunity Fund available for administrative ex8 penses shall be available and may be used at the dis9 cretion of the Executive Director to purchase insur10 ance to cover potential liability of persons who serve 

11 in a fiduciary capacity with respect to the Fund and 

12 accounts maintained therein, without regard to 

13 whether a policy of insurance permits recourse by 

14 the insurer against the fiduciary in the case of a 

15 breach of a fiduciary obligation. 

16 SEC. 9. ACCOUNTS DISREGARDED IN DETERMINING ELIGI17 BILITY FOR FEDERAL BENEFITS. 

18 Amounts in any AO account shall not be taken into 

19 account in determining any individual’s or household’s fi20 nancial eligibility for, or amount of, any benefit or service, 

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

22 student financial aid. 

23 SEC. 10. REPORTS. 

24 (a) REPORTS TO CONGRESS.—The Executive Direc25 tor, in consultation with the Secretary, shall annually 


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1 transmit a written report to the Congress. Such report 

2 shall include— 

3 (1) a detailed description of the status and op4 eration of the American Opportunity Fund and the 

5 management of the AO accounts; and 

6 (2) a detailed accounting of the administrative 

7 expenses in carrying out this title, including the 

8 ratio of such administrative expenses to the balance 

9 of the American Opportunity Fund and the method10 ology adopted by the Executive Director for allo11 cating such expenses among the AO accounts. 

12 (b) REPORTS TO ACCOUNT HOLDERS.—The Amer13 ican Opportunity Fund Board shall prescribe regulations 

14 under which each individual for whom an AO account is 

15 maintained shall be furnished with an annual statement 

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

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

18 AO account; 

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

20 time the individual attains the age of 18; and 

21 (3) such other information as the Secretary 

22 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 139H the 

11 following new section: 

12 ‘‘SEC. 139I. 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. 


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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 139H the following new item: 

‘‘Sec. 139I. 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, 2021. 

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