I 

111TH CONGRESS 

1ST SESSION H. R. 3037 

To require the Secretary of Education to establish a pilot program to award 

grants to State and local educational agencies to develop financial literacy 

programs in elementary and secondary schools, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2009 

Mr. CLEAVER introduced the following bill; which was referred to the 

Committee on Education and Labor 

A BILL 

To require the Secretary of Education to establish a pilot 

program to award grants to State and local educational 

agencies to develop financial literacy programs in elementary and secondary schools, 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. 

4 This Act may be cited as the ‘‘Financial Literacy for 

5 Youth Act of 2009’’ or the ‘‘FLY Act of 2009’’. 


sroberts on PROD1PC70 with BILLS
2 

•HR 3037 IH

1 SEC. 2. REQUIREMENT TO ESTABLISH A PILOT PROGRAM 

2 TO AWARD GRANTS TO STATE AND LOCAL 

3 EDUCATIONAL AGENCIES TO DEVELOP FI4 NANCIAL LITERACY PROGRAMS IN ELEMEN5 TARY AND SECONDARY SCHOOLS. 

6 (a) IN GENERAL.— 

7 (1) PILOT PROGRAM.—The Secretary of Edu8 cation (referred to in this Act as the ‘‘Secretary’’) 

9 shall establish a pilot program to award grants to 

10 State and local educational agencies to develop fi11 nancial literacy programs in elementary and sec12 ondary schools. 

13 (2) GRANT AWARDS.—The Secretary shall 

14 award grants under the pilot program to 10 State 

15 or local education agencies. 

16 (b) APPLICATION.— 

17 (1) IN GENERAL.—Each State or local edu18 cational agency that desires a grant under the pilot 

19 program shall submit an application to the Secretary 

20 at such time, in such manner, and accompanied by 

21 such information as the Secretary may reasonably 

22 require. 

23 (2) CONTENTS.—Each grant application under 

24 the pilot program shall describe how— 

25 (A) funds will be used to incorporate finan26 cial literacy into the curriculum; 


sroberts on PROD1PC70 with BILLS
3 

•HR 3037 IH

1 (B) a local educational agency will work 

2 with State educational agencies to ensure that 

3 the curriculum is in compliance with State 

4 standards; 

5 (C) the funds will be used for professional 

6 development; 

7 (D) a local educational agency will coordi8 nate its financial literacy program with local, 

9 State, and Federal programs (or other commu10 nity initiatives, if applicable); and 

11 (E) a local educational agency will measure 

12 performance and evaluate the effectiveness of 

13 its program. 

14 (c) USE OF FUNDS.—A grant award under the pilot 

15 program shall be used to integrate financial literacy pro16 grams into elementary and secondary school curriculums; 

17 to carry out professional development, including fellow18 ships for financial literacy instructors and personnel (in19 cluding licensed teachers, education administrators, and 

20 bank personnel) involved in the education of financial lit21 eracy programs; to conduct program evaluations and sur22 veys; and to collect, analyze, and develop information nec23 essary to accomplish the pilot program. 


sroberts on PROD1PC70 with BILLS
4 

•HR 3037 IH

1 (d) MAXIMUM GRANT.—A grant award under the 

2 pilot program to any one State or local educational agency 

3 shall be not more than $250,000 for any fiscal year. 

4 (e) LIMITATION ON ADMINISTRATIVE COSTS.—Not 

5 more than 4 percent of the amounts made available under 

6 the pilot program for any fiscal year may be used for ad7 ministrative costs to carry out the pilot program. 

8 (f) REPORTS.— 

9 (1) REPORT BY A STATE OR LOCAL EDUCATION

10 AGENCY.—Not later than 90 days after the conclu11 sion of the pilot program, a State or local edu12 cational agency shall prepare and submit to the Sec13 retary a report that details which curriculums and 

14 policies implemented in the financial literacy pro15 gram were successful or unsuccessful, which curricu16 lums and policies they would recommend to other 

17 education agencies, and such further guidelines for 

18 this report as the Secretary shall deem necessary. 

19 (2) REPORT BY THE SECRETARY.—Not later 

20 than 180 days after the conclusion of the pilot pro21 gram, the Secretary shall submit to the Committee 

22 on Financial Services and the Committee on Edu23 cation and Labor a report on the pilot program. 

24 (g) FINANCIAL LITERACY DEFINED.—The term ‘‘fi25 nancial literacy’’ means the acquisition of knowledge and 


sroberts on PROD1PC70 with BILLS
5 

•HR 3037 IH

1 understanding of all personal financial matters and trans2 actions, from finance management and investment, to 

3 being able to make sound financial decisions, including but 

4 not limited to understanding— 

5 (1) how to balance a checkbook, read a credit 

6 card statement, and calculate interest rates; 

7 (2) what a pay stub is and why Federal and 

8 State taxes, Social Security, and Medicare are de9 ducted from wages; 

10 (3) the differences between various types of 

11 bank accounts; 

12 (4) the significance of a credit score and how 

13 to read credit reports; 

14 (5) the marketing techniques frequently used by 

15 individuals and businesses to attract patrons; and 

16 (6) the importance of saving for college and re17 tirement. 

18 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated such sums as are nec20 essary for each of the fiscal years 2010 through 2015 to 

21 carry out the pilot program. 

Æ 


sroberts on PROD1PC70 with BILLS