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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5165 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5165

To amend title V of the Elementary and Secondary Education Act of 1965 
  to provide grants to State educational agencies in order to provide 
subgrants to eligible local entities to promote financial education to 
                       students in the classroom.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2010

  Mr. Castle introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL

 
To amend title V of the Elementary and Secondary Education Act of 1965 
  to provide grants to State educational agencies in order to provide 
subgrants to eligible local entities to promote financial education to 
                       students in the classroom.

    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 ``Financial Education in the Classroom 
Act of 2010''.

SEC. 2. FINANCIAL EDUCATION FOR STUDENTS.

    (a) In General.--Subpart 13 of part D of title V of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7267 et seq.) is amended 
to read as follows:

             ``Subpart 13--Financial Education for Students

``SEC. 5531. SHORT TITLE.

    ``This subpart may be cited as the `Financial Education in the 
Classroom Act'.

``SEC. 5532. PURPOSE AND GOALS.

    ``(a) Purpose.--The purpose of this subpart is to promote and carry 
out economic and financial literacy among all students in kindergarten 
through grade 12 by awarding competitive grants to State educational 
agencies to improve the quality of student understanding of personal 
finance and economics.
    ``(b) Goals.--The goals of this subpart are the following:
            ``(1) To increase students' knowledge of, and achievement 
        in, economics and financial literacy to enable the students to 
        become more productive and informed citizens.
            ``(2) To strengthen teachers' understanding of, and 
        competency in, economics and personal finance to enable the 
        teachers to increase student mastery of economic and financial 
        education principles and the practical application of those 
        principles.
            ``(3) To assist State educational agencies in measuring the 
        impact of education in economics and personal finances.
            ``(4) To encourage economic and financial education 
        research and development, disseminate effective instructional 
        materials, and promote replication of best practices and 
        exemplary programs that foster economic and financial literacy.
            ``(5) To leverage and expand private and public support for 
        economic education partnerships at national, State, and local 
        levels.

``SEC. 5533. GRANTS TO STATE EDUCATIONAL AGENCIES FOR FINANCIAL 
              EDUCATION FOR STUDENTS.

    ``(a) Grants to State Educational Agencies.--From the funds 
appropriated under section 5536 to carry out this section for each 
fiscal year, the Secretary shall award grants, on a competitive basis, 
to State educational agencies to award subgrants to eligible local 
entities to develop and carry out programs that are designed to provide 
financial education to students in the classroom.
    ``(b) State Educational Agency Uses of Funds.--
            ``(1) In general.--A State educational agency that receives 
        a grant under this section--
                    ``(A) shall--
                            ``(i) use the grant funds to award 
                        subgrants, on a competitive basis, to eligible 
                        local entities, to develop and carry out 
                        financial education programs to assist students 
                        in kindergarten through grade 12 achieve 
                        financial literacy by teaching such students--
                                    ``(I) personal financial management 
                                skills; and
                                    ``(II) the basic principles 
                                involved with earning, spending, 
                                saving, investing, credit, and 
                                insurance; and
                            ``(ii) reserve not less than 2 percent of 
                        the grant funds to provide State-wide 
                        professional development activities to prepare 
                        teachers and school administrators in economic 
                        and financial literacy; and
                    ``(B) may reserve not more than 3 percent of the 
                grant funds for--
                            ``(i) administrative expenses, including 
                        ongoing technical assistance, training, 
                        monitoring, and dissemination of promising 
                        practices for eligible local entities that 
                        receive subgrants under this section; and
                            ``(ii) conducting, in accordance with 
                        subsection (c)(2)(E), an evaluation of the 
                        financial education programs developed and 
                        carried out by such eligible local entities.
            ``(2) Subgrants to eligible local entities.--
                    ``(A) Application.--Each eligible local entity 
                desiring a subgrant under this section shall submit an 
                application to the State educational agency at such 
                time, in such manner, and including such information as 
                the State educational agency may reasonably require.
                    ``(B) Application contents.--Each application 
                submitted under subparagraph (A) shall include--
                            ``(i) a description of how the eligible 
                        local entity will use funds received under this 
                        section, including a description of the 
                        financial education program (in this 
                        subparagraph referred to as the `proposed 
                        program') the entity plans to develop and carry 
                        out using the funds;
                            ``(ii) a description of each partner in the 
                        eligible local entity;
                            ``(iii) if the eligible local entity does 
                        not include a partnership with a small or large 
                        business described in subsection (g)(1)(F), a 
                        description of how the entity will collaborate 
                        with the business community to promote the 
                        connection between financial education and 
                        economic development;
                            ``(iv) an identification of Federal, State, 
                        and local programs that the eligible local 
                        entity will coordinate with the proposed 
                        program to make the most effective use of 
                        public resources;
                            ``(v) an evaluation of the community needs 
                        and available resources, and a description of 
                        how the proposed program will address those 
                        needs;
                            ``(vi) if the eligible local entity plans 
                        to use volunteers, a description of how the 
                        entity will encourage and use individuals with 
                        appropriate financial literacy qualifications 
                        to serve as the volunteers;
                            ``(vii) an assurance that the eligible 
                        local entity has experience, or promise of 
                        success, in developing, implementing, and 
                        providing high-quality financial education or 
                        personal finance education training or 
                        instruction; and
                            ``(viii) such other information and 
                        assurances as the State educational agency may 
                        reasonably require.
                    ``(C) Use of funds.--An eligible local entity that 
                receives a subgrant under this section--
                            ``(i) shall use funds made available under 
                        the subgrant to develop and carry out financial 
                        education programs to assist students in 
                        kindergarten through grade 12 achieve financial 
                        literacy by teaching such students--
                                    ``(I) personal financial management 
                                skills; and
                                    ``(II) the basic principles 
                                involved with earning, spending, 
                                saving, investing, credit, and 
                                insurance; and
                            ``(ii) may use funds made available under 
                        the subgrant to--
                                    ``(I) develop or acquire financial 
                                educational materials, activities, or 
                                coursework, that have been integrated 
                                into the curricula of the schools 
                                served by the local educational agency 
                                of the eligible local entity; or
                                    ``(II) develop or carry out for 
                                teachers and administrators, 
                                professional development programs that 
                                use effective and innovative approaches 
                                to the teaching of financial education 
                                and personal finance.
                    ``(D) Approval of local application.--The State 
                educational agency shall approve only those 
                applications from eligible local entities that have 
                developed plans that the State educational agency 
                determines to be feasible and appropriate in order to 
                achieve the desired purpose of the subgrants.
                    ``(E) Considerations.--In awarding subgrants under 
                this section, the State educational agency shall take 
                into consideration--
                            ``(i) whether the eligible local entities 
                        that will be awarded a subgrant under this 
                        section are equitably distributed among the 
                        different geographic regions of the State and 
                        serve urban and rural areas; and
                            ``(ii) local educational agencies that may 
                        benefit from a subgrant under this subsection 
                        that are serving higher percentages or numbers 
                        of school-age children who are from low-income 
                        families, as compared to other such local 
                        educational agencies.
                    ``(F) Permissive local match.--
                            ``(i) In general.--A State educational 
                        agency may require an eligible local entity to 
                        match the subgrant funds the entity receives 
                        under this section, except that such match may 
                        not be derived from other Federal funds.
                            ``(ii) Sliding scale.--The amount of a 
                        match under clause (i)--
                                    ``(I) shall be established based on 
                                a sliding fee scale that takes into 
                                account the ability of the eligible 
                                local entity to obtain such matching 
                                funds; and
                                    ``(II) shall not exceed an amount 
                                equal to 50 percent of the cost of the 
                                activities supported under the 
                                subgrant.
                            ``(iii) In-kind contributions.--Each State 
                        educational agency that requires an eligible 
                        local entity to match funds under this section 
                        shall permit the entity to provide all or any 
                        portion of such match in the form of in-kind 
                        contributions.
                            ``(iv) Consideration.--Notwithstanding 
                        clause (i), a State educational agency shall 
                        not consider an eligible local entity's ability 
                        to match funds when determining whether the 
                        entity will receive a subgrant under this 
                        section.
    ``(c) State Educational Agency Application.--
            ``(1) In general.--Each State educational agency that 
        desires to receive a grant under this section shall submit an 
        application to the Secretary, at such time, in such manner, and 
        including such information as the Secretary may reasonably 
        require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall include--
                    ``(A) a description of how the State educational 
                agency will use funds received under this section, 
                including--
                            ``(i) how the State will use funds reserved 
                        for State-wide professional development 
                        activities under subsection (b)(1)(A)(ii); and
                            ``(ii) how the State educational agency 
                        will select eligible local entities to receive 
                        subgrants under this section;
                    ``(B) a description of how the State educational 
                agency will assist local educational agencies in 
                partnering with one of the entities described in 
                subparagraphs (A) through (F) of subsection (g)(1) in 
                order to become eligible local entities;
                    ``(C) an identification of Federal and State 
                programs that the State will coordinate with the 
                programs developed and carried out by eligible entities 
                that receive subgrants under this section to make the 
                most effective use of public resources;
                    ``(D) a description of the steps that the State 
                educational agency will take to ensure that programs 
                developed and carried out by the eligible local 
                entities receiving subgrants under this section 
                implement effective strategies, including by providing 
                such entities ongoing technical assistance, training, 
                monitoring, and dissemination of promising practices;
                    ``(E) an assurance that the State educational 
                agency will conduct an independent evaluation that is 
                based on rigorous scientifically based research to 
                assess--
                            ``(i) the effectiveness of the programs 
                        developed and carried out by the eligible local 
                        entities receiving subgrants under this 
                        section; and
                            ``(ii) the impact of economic and financial 
                        literacy education on students served by such 
                        programs ; and
                    ``(F) such other information and assurances as the 
                Secretary may reasonably require.
            ``(3) Approval.--In approving applications submitted under 
        paragraph (1), the Secretary shall--
                    ``(A) to the extent feasible, ensure an equitable 
                geographic distribution of grants awarded under this 
                section; and
                    ``(B) consider local educational agencies that may 
                benefit from a subgrant under this section that are 
                serving higher percentages or numbers of school-age 
                children who are from low-income families, as compared 
                to other such local educational agencies.
    ``(d) Duration of Grants.--Grants under this section may be awarded 
for a period of not less than 3 years and not more than 5 years.
    ``(e) Amount of Grants.--A grant awarded under this section may not 
be made in an amount that is less than $50,000 per award year.
    ``(f) Reports.--
            ``(1) State educational agency.--Each State educational 
        agency receiving a grant under this section shall submit to the 
        Secretary, a report for each fiscal year for which a grant is 
        received that describes--
                    ``(A) the programs supported by the grant; and
                    ``(B) the results of the State educational agency's 
                monitoring and evaluation of such programs.
            ``(2) Secretary.--The Secretary shall publicly release a 
        copy of the report, including by posting the report on the 
        Internet website of the Department of Education.
    ``(g) Definitions.--In this section:
            ``(1) Eligible local entity.--The term `eligible local 
        entity' means a partnership consisting of a local educational 
        agency and not less than 1 of the following entities:
                    ``(A) A nonprofit organization with experience, or 
                promise of success, in developing, administering, and 
                carrying out high-quality financial education or 
                personal finance education programs.
                    ``(B) A nonprofit organization with experience, or 
                promise of success, in developing, administering, and 
                carrying out high-quality professional development for 
                teachers that leads to an increase in student academic 
                achievement in subjects integral to financial education 
                or personal finance education.
                    ``(C) A recipient of an Excellence in Economic 
                Education grant under section 5534.
                    ``(D) An institution of higher education.
                    ``(E) A community-based organization with 
                experience, or promise of success, in developing, 
                administering, and carrying out high-quality financial 
                education or personal finance education programs.
                    ``(F) A small or large business with experience, or 
                promise of success, in developing, administering, and 
                carrying out high-quality financial education or 
                personal finance education programs.
            ``(2) Low-income family.--The term `low-income family' 
        means a family below the poverty line, as determined under 
        section 1124(c)(2).

``SEC. 5534. GRANT TO NATIONAL ORGANIZATION TO IMPROVE THE QUALITY OF 
              FINANCIAL EDUCATION PROGRAMS.

    ``(a) Authorization.--From the amounts appropriated under section 
5536, the Secretary may award a competitive grant to a national 
nonprofit educational organization that has as its primary purpose the 
improvement of the quality of student understanding of personal finance 
and economics through effective teaching of economics in the Nation's 
classrooms (referred to in this section as the `grantee').
    ``(b) Uses of Funds.--
            ``(1) Direct activities.--The grantee shall use 25 percent 
        of the funds made available through the grant for a fiscal year 
        to--
                    ``(A) strengthen and expand the grantee's 
                relationships with State and local personal finance, 
                entrepreneurial, and economic education organizations;
                    ``(B) support and promote training of teachers who 
                teach a grade from kindergarten through grade 12 
                regarding economics, including the dissemination of 
                information on effective practices and research 
                findings regarding the teaching of economics;
                    ``(C) support research on effective teaching 
                practices and the development of assessment instruments 
                to document student understanding of personal finance 
                and economics; and
                    ``(D) develop and disseminate appropriate materials 
                to foster economic literacy.
            ``(2) Subgrants.--The grantee shall use 75 percent of the 
        funds made available through the grant for a fiscal year to 
        award subgrants to State educational agencies or local 
        educational agencies, and State or local economic, personal 
        finance, or entrepreneurial education organizations (referred 
        to in this section as the `recipient'). The grantee shall award 
        such a subgrant to pay for the Federal share of the cost of 
        enabling the recipient to work in partnership with one or more 
        of the entities described in paragraph (3) for one or more of 
        the following purposes:
                    ``(A) Collaboratively establishing and conducting 
                teacher training programs that use effective and 
                innovative approaches to the teaching of economics, 
                personal finance, and entrepreneurship.
                    ``(B) Providing resources to local educational 
                agencies that desire to incorporate economics and 
                personal finance into the curricula of the schools 
                served by the agencies.
                    ``(C) Conducting evaluations of the impact of 
                economic and financial literacy education on students.
                    ``(D) Conducting economic and financial literacy 
                education research.
                    ``(E) Encouraging replication of best practices to 
                promote economic and financial literacy.
            ``(3) Partnership entities.--The entities described in this 
        paragraph are the following:
                    ``(A) A private sector entity.
                    ``(B) A State educational agency.
                    ``(C) A local educational agency.
                    ``(D) An institution of higher education.
                    ``(E) An organization promoting economic 
                development.
                    ``(F) An organization promoting educational 
                excellence.
                    ``(G) An organization promoting personal finance or 
                entrepreneurial education.
    ``(c) Grantee Applications.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, the grantee shall submit to the Secretary an 
        application at such time, in such manner, and accompanied by 
        such information as the Secretary may require.
            ``(2) Recipient applications.--
                    ``(A) Submission.--To be eligible to receive a 
                subgrant under this section, a recipient shall submit 
                an application to the grantee at such time, in such 
                manner, and accompanied by such information as the 
                grantee may require.
                    ``(B) Review.--The grantee shall invite the 
                individuals described in subparagraph (C) to review all 
                applications from recipients for a subgrant under this 
                section and to make recommendations to the grantee 
                regarding the approval of the applications.
                    ``(C) Reviewers.--The individuals described in this 
                subparagraph are the following:
                            ``(i) Leaders in the fields of economics 
                        and education.
                            ``(ii) Such other individuals as the 
                        grantee determines to be necessary, especially 
                        members of the State and local business, 
                        banking, and finance communities.
    ``(d) Administrative Costs.--The grantee and each recipient 
receiving a subgrant under this section for a fiscal year may use not 
more than 5 percent of the funds made available through the grant or 
subgrant for administrative costs.
    ``(e) Teacher Training Programs.--In carrying out the teacher 
training programs described in subsection (b)(2)(A), a recipient 
shall--
            ``(1) train teachers who teach a grade from kindergarten 
        through grade 12; and
            ``(2) encourage teachers from disciplines other than 
        economics and financial literacy to participate in such teacher 
        training programs, if the training will promote the economic 
        and financial literacy of those teachers' students.
    ``(f) Involvement of Business Community.--In carrying out the 
activities assisted under this section, the grantee and recipients are 
strongly encouraged to--
            ``(1) include interactions with the local business 
        community to the fullest extent possible to reinforce the 
        connection between economic and financial literacy and economic 
        development; and
            ``(2) work with private businesses to obtain matching 
        contributions for Federal funds and assist recipients in 
        working toward self-sufficiency.
    ``(g) Additional Requirements and Technical Assistance.--The 
grantee shall--
            ``(1) meet such other requirements as the Secretary 
        determines to be necessary to assure compliance with this 
        section; and
            ``(2) receive from the Secretary such technical assistance 
        as may be necessary to carry out this section.
    ``(h) Federal Share.--The Federal share of the cost described in 
subsection (b)(2) shall be 50 percent.
    ``(i) Payment of Non-Federal Share.--The non-Federal share may be 
paid in cash or in kind (fairly evaluated, including plant, equipment, 
or services).
    ``(j) Reports to Congress.--Not later than 2 years after the date 
funds are first made available to carry out this section, and every 2 
years thereafter, the Secretary shall submit to the appropriate 
committees of Congress a report regarding activities assisted under 
this section.

``SEC. 5535. SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available to carry out this subpart shall be used to 
supplement, and not supplant, other Federal, State, and local funds 
expended for the purpose described in section 5532(a).

``SEC. 5536. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated such 
sums as may be necessary to carry out this subpart for fiscal year 2011 
and each of the 5 succeeding fiscal years.
    ``(b) Distribution of Funds.--Of the funds appropriated under 
subsection (a) for each fiscal year--
            ``(1) the Secretary shall reserve up to 4 percent to carry 
        out the activities described in section 5534; and
            ``(2) shall use the remaining funds to carry out section 
        5533.''.

SEC. 3. CONFORMING AMENDMENT.

    The table of contents in section 2 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended by striking 
the item relating to subpart 13 of part D of title V and inserting the 
following:

             ``subpart 13--financial education for students

``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grants to State educational agencies for financial 
                            education for students.
``Sec. 5534. Grant to national organization to improve the quality of 
                            financial education programs.
``Sec. 5535. Supplement, not supplant.
``Sec. 5536. Authorization of appropriations.''.
                                 <all>
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