II 

117TH CONGRESS 

1ST SESSION S. 2816 

To establish a youth savings match grant program for students in grades 

9 through 12. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 23, 2021 

Mr. PETERS (for himself and Ms. LUMMIS) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To establish a youth savings match grant program for 

students in grades 9 through 12. 

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. 

4 This Act may be cited as the ‘‘PIGGY BANK Act’’ 

5 or the ‘‘Program to Inspire Growth and Guarantee Youth 

6 Budgeting Advice and Necessary Knowledge Act’’. 

7 SEC. 2. PILOT YOUTH SAVINGS MATCH GRANT PROGRAM. 

8 (a) DEFINITIONS.—In this Act: 

9 (1) ESEA TERMS.—The terms ‘‘local edu10 cational agency’’ and ‘‘parent’’ have the meaning 


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1 given those terms in section 8101 of the Elementary 

2 and Secondary Education Act of 1965 (20 U.S.C. 

3 7801). 

4 (2) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Education. 

6 (b) PROGRAM AUTHORIZED.— 

7 (1) IN GENERAL.—The Secretary, in collabora8 tion with the Financial Literacy and Education 

9 Commission of the Department of Treasury and the 

10 Division of Consumer and Community Affairs of the 

11 Board of Governors of the Federal Reserve System, 

12 shall establish a pilot program to award grants to 

13 States, on a competitive basis, to enable those States 

14 to select participating eligible local educational agen15 cies in the State to carry out a youth savings match 

16 program, as described in subsection (d). 

17 (2) DURATION.—Grants awarded under this 

18 section shall be for a period of 6 years. 

19 (c) APPLICATION.—Each State desiring a grant 

20 under this section shall submit to the Secretary an appli21 cation at such time, in such manner, and accompanied by 

22 such information as the Secretary may require, which shall 

23 include, at a minimum— 


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1 (1) a comprehensive plan of administration of 

2 the youth savings match program, including how 

3 parents will be encouraged to participate; 

4 (2) the identification of a single account trust5 ee, which shall be a State agency, such as a State 

6 Department of Treasury, Office of the Governor, 

7 Lieutenant Governor, State financial regulator, 

8 Comptroller, a tax-exempt nonprofit organization or 

9 foundation, or a for-profit organization or business 

10 with demonstrated expertise and experience in suc11 cessfully managing financial services; 

12 (3) an assurance that the State and partici13 pating eligible local educational agencies in the State 

14 will participate in an evaluation of the program; 

15 (4) an identification of the individuals who will 

16 conduct the training for teachers who administer the 

17 financial literacy classroom component of the pro18 gram; and 

19 (5) a description of the goals and objectives of 

20 the financial literacy classroom component of the 

21 program and an overview of that program, including 

22 an overview of the topics that will be part of that 

23 program. 

24 (d) YOUTH SAVINGS MATCH GRANT PROGRAM.— 


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1 (1) ELIGIBLE LEAS.—A local educational agen2 cy shall be eligible to participate in the youth sav3 ings match program if that local educational agency 

4 receives funding under part A of title I of the Ele5 mentary and Secondary Education Act of 1965 (20 

6 U.S.C. 6311 et seq.). 

7 (2) YOUTH SAVINGS MATCH PROGRAM.—Each 

8 participating eligible local educational agency shall 

9 use grant funds to carry out a youth savings match 

10 program, through which the eligible local educational 

11 agency shall ensure that— 

12 (A) every year each student in grades 9 

13 through 12 that is served by that eligible local 

14 educational agency is notified that— 

15 (i) a youth savings match program ac16 count has been established for that stu17 dent, and the account will be funded in ac18 cordance with subparagraph (B); 

19 (ii) in order to retain the initial de20 posit and matching contributions from 

21 grant funding that are deposited in the 

22 student’s youth savings match program ac23 count, the student and parents may not 

24 withdraw from the student’s youth savings 

25 match program account until the date that 


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1 is 1 year after the date of the student’s 

2 high school graduation, or expected high 

3 school graduation, unless the withdrawal is 

4 approved in accordance with subparagraph 

5 (G); and 

6 (iii) upon withdrawal, funds in the 

7 youth savings match program account may 

8 be taxed; 

9 (B) each student in grades 9 through 12 

10 who is served by the eligible local educational 

11 agency— 

12 (i) receives $300 in an initial deposit 

13 in the participating student’s youth savings 

14 match program account; and 

15 (ii) receives, on a monthly basis and 

16 for a total of not more than 4 years, an 

17 amount of funds equal to the amount of 

18 funds that the participating student or 

19 such student’s family contributes in that 

20 month to the student’s youth savings 

21 match program account, except that such 

22 monthly match amount shall not exceed 

23 $25 and the total amount of Federal 

24 matching funds shall not exceed $300 each 

25 year; 


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1 (C) funds contributed to a youth savings 

2 match program account are deposited in an ac3 count at a depository institution (as defined in 

4 section 19(b)(1)(A) of the Federal Reserve Act 

5 (12 U.S.C. 461(b)(1)(A))) or invested in United 

6 States Treasury bills, notes, or bonds; 

7 (D) participating students and their fami8 lies are able to make deposits into the youth 

9 savings match program account in person, on10 line, or on mobile devices, and are encouraged 

11 to make automatic deposits into that account; 

12 (E) the parents of participating students 

13 are encouraged to participate in the program 

14 and contribute to the student’s youth savings 

15 match program account; 

16 (F) any early withdrawal from a youth 

17 savings match program account will require ap18 proval of the savings account trustee identified 

19 in the State’s application under subsection (c) 

20 and such a withdrawal will only be approved if 

21 the funds are withdrawn for the purpose of pay22 ing for postsecondary education, a career and 

23 technical education program of study, home24 ownership, business ownership, medical hard25 ship, or for another purpose that the eligible 


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1 local educational agency determines to be an 

2 authorized purpose; 

3 (G) if funds are withdrawn from a youth 

4 savings match program account that are not 

5 approved under subparagraph (F)— 

6 (i) the student will lose any Federal 

7 grant money that has been contributed to 

8 the account (including the initial deposit, 

9 matching contributions, and bonus con10 tributions, as described in subparagraph 

11 (B)), and no further matching funds will 

12 be contributed to the account; and 

13 (ii) the student and parent may still 

14 retain, and may withdraw funds that the 

15 student or parent has contributed to the 

16 student’s youth savings match program ac17 count; and 

18 (H) participating students receive financial 

19 literacy education, in a manner determined by 

20 the State receiving the grant, which shall in21 clude information about how funds in the youth 

22 savings match program account may be taxed 

23 and explaining how taxation works for interest24 bearing or investment accounts. 


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1 (e) EVALUATION.—The Secretary shall carry out an 

2 evaluation of the grant program under this section to de3 termine which aspects of the program have been effective 

4 and which aspects of the program have not been effective. 

5 (f) REPORT.—Not later than 4 years after the imple6 mentation of the grant program under this section, the 

7 Secretary shall prepare and submit a report to Congress 

8 containing the results of the evaluation under subsection 

9 (e). 

10 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to carry out this Act 

12 such sums as may be necessary for fiscal year 2022 and 

13 each of the 3 succeeding fiscal years. 

Æ 


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