II 

109TH CONGRESS 

1ST SESSION S. 923 

To amend part A of title IV of the Social Security Act to require a State 

to promote financial education under the Temporary Assistance for 

Needy Families (TANF) Program and to allow financial education to 

count as a work activity under that program. 

IN THE SENATE OF THE UNITED STATES 

APRIL 27, 2005 

Mr. CORZINE (for himself, Mr. AKAKA, Ms. STABENOW, Mr. LAUTENBERG, 

and Mr. OBAMA) introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend part A of title IV of the Social Security Act 

to require a State to promote financial education under 

the Temporary Assistance for Needy Families (TANF) 

Program and to allow financial education to count as 

a work activity under that program. 

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 ‘‘TANF Financial Edu5 cation Promotion Act of 2005’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 
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•S 923 IS 

1 (1) Most recipients of assistance under the 

2 Temporary Assistance for Needy Families (TANF) 

3 Program established under part A of title IV of the 

4 Social Security Act (42 U.S.C. 601 et seq.) and indi5 viduals moving toward self-sufficiency operate out6 side the financial mainstream, paying high costs to 

7 handle their finances and saving little for emer8 gencies or the future. 

9 (2) Currently, personal debt levels and bank10 ruptcy filing rates are high and savings rates are at 

11 their lowest levels in 70 years. The inability of many 

12 households to budget, save, and invest prevents them 

13 from laying the foundation for a secure financial fu14 ture. 

15 (3) Financial planning can help families meet 

16 near-term obligations and maximize their longer17 term well being, especially valuable for populations 

18 that have traditionally been underserved by our fi19 nancial system. 

20 (4) Financial education can give individuals the 

21 necessary financial tools to create household budg22 ets, initiate savings plans, and acquire assets. 

23 (5) Financial education can prevent vulnerable 

24 customers from becoming entangled in financially 

25 devastating credit arrangements. 
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1 (6) Financial education that addresses abusive 

2 lending practices targeted at specific neighborhoods 

3 or vulnerable segments of the population can prevent 

4 unaffordable payments, equity stripping, and fore5 closure. 

6 (7) Financial education speaks to the broader 

7 purpose of the TANF Program to equip individuals 

8 with the tools to succeed and support themselves and 

9 their families in self-sufficiency. 

10 SEC. 3. REQUIREMENT TO PROMOTE FINANCIAL EDU11 CATION UNDER TANF. 

12 (a) STATE PLAN.—Section 402(a)(1)(A) of the Social 

13 Security Act (42 U.S.C. 602(a)(1)(A)) is amended by add14 ing at the end the following: 

15 ‘‘(vii) Establish goals and take action 

16 to promote financial education, as defined 

17 in section 407(j), among parents and care18 takers receiving assistance under the pro19 gram through collaboration with commu20 nity-based organizations, financial institu21 tions, and the Cooperative State Research, 

22 Education, and Extension Service of the 

23 Department of Agriculture.’’. 
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1 (b) INCLUSION OF FINANCIAL EDUCATION AS A

2 WORK ACTIVITY.—Section 407 of the Social Security Act 

3 (42 U.S.C 607) is amended— 

4 (1) in subsection (c)(1)— 

5 (A) in subparagraph (A), by striking ‘‘or 

6 (12)’’ and inserting ‘‘(12), or (13)’’; and 

7 (B) in subparagraph (B), by striking ‘‘or 

8 (12)’’ each place it appears and inserting ‘‘(12), 

9 or (13)’’; 

10 (2) in subsection (d)— 

11 (A) in paragraph (11), by striking ‘‘and’’ 

12 at the end; 

13 (B) in paragraph (12), by striking the pe14 riod and inserting ‘‘; and’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(13) financial education, as defined in sub17 section (j).’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(j) DEFINITION OF FINANCIAL EDUCATION.—In 

20 this part, the term ‘financial education’ means education 

21 that promotes an understanding of consumer, economic, 

22 and personal finance concepts, including the basic prin23 ciples involved with earning, budgeting, spending, saving, 

24 investing, and taxation.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section take effect on October 1, 2005. 

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