I 
111TH CONGRESS 
1ST SESSION H. R. 1645 
To provide grants to promote financial and economic literacy. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2009 
Mrs. MCCARTHY of New York introduced the following bill; which was 
referred to the Committee on Education and Labor 
A BILL 
To provide grants to promote financial and economic literacy. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial and Eco-
nomic Literacy Improvement Act of 2009’’. 
SEC. 2. FINANCIAL AND ECONOMIC LITERACY EDUCATION 
GRANTS. 
(a) IN GENERAL.—Part D of title V of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C. 
7241 et seq.) is amended by inserting after section 5537 
the following: 
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‘‘Subpart 13A—Financial and Economic Literacy 
Education 
‘‘SEC. 5538. FINANCIAL AND ECONOMIC LITERACY EDU-
CATION GRANTS. 
‘‘(a) AUTHORIZATION.—The Secretary shall award 
grants to eligible entities to enable such entities— 
‘‘(1) to award subgrants to local entities to pro-
vide financial and economic literacy education; and 
‘‘(2) to carry out activities designed to promote 
financial and economic literacy education. 
‘‘(b) ELIGIBLE ENTITIES.—In this section, the term 
‘eligible entity’ means— 
‘‘(1) a State educational agency; or 
‘‘(2) a State partnership consisting of— 
‘‘(A) a State educational agency; 
‘‘(B) a nonprofit organization with experi-
ence and a proven quality track record in finan-
cial and economic literacy or personal finance 
education programs; and 
‘‘(C) a nonprofit organization with experi-
ence and a proven track record in quality pro-
fessional development for teachers leading to 
higher student achievement in skills and sub-
jects integral to financial and economic literacy 
or personal finance education. 
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‘‘(c) APPLICATION.—An eligible entity that desires to 
receive a grant under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may 
require. 
‘‘(d) FORMULA.—From the total amount appro-
priated under subsection (g) for a fiscal year, the Sec-
retary shall allot to each State for such fiscal year an 
amount that bears the same relation to such total amount 
as the amount such State received under part A of title 
I for such fiscal year bears to the total amount received 
by all States under part A of title I for such fiscal year. 
‘‘(e) USE OF FUNDS.— 
‘‘(1) SUBGRANTS
TO
ELIGIBLE
LOCAL
ENTI-
TIES.— 
‘‘(A) ELIGIBLE
LOCAL
ENTITY.—In this 
section, the term ‘eligible local entity’ means— 
‘‘(i) a local educational agency; or 
‘‘(ii) a local partnership consisting 
of— 
‘‘(I) a local educational agency; 
and 
‘‘(II) not less than 1 of the fol-
lowing: 
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‘‘(aa) A nonprofit organiza-
tion with experience and a proven 
track record in quality financial 
and economic literacy or personal 
finance education programs. 
‘‘(bb) A nonprofit organiza-
tion with experience and a proven 
track record in quality profes-
sional development for teachers 
leading to higher student achieve-
ment in skills and subjects inte-
gral to financial and economic lit-
eracy or personal finance edu-
cation. 
‘‘(cc) An educational service 
agency. 
‘‘(dd) A recipient of an Ex-
cellence in Economic Education 
grant under subpart 13. 
‘‘(ee) An institution of high-
er education. 
‘‘(ff) A community organiza-
tion. 
‘‘(gg) A representative of 
local business. 
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‘‘(B) AUTHORIZATION
OF
SUBGRANTS.— 
An eligible entity that receives a grant under 
this section shall use 75 percent of such grant 
funds to award subgrants to eligible local enti-
ties. 
‘‘(C) APPLICATIONS.— 
‘‘(i) IN
GENERAL.—An eligible local 
entity that desires to receive a subgrant 
under this paragraph shall submit an ap-
plication to the eligible entity at such time, 
in such manner, and accompanied by such 
information as the eligible entity may re-
quire. 
‘‘(ii) REVIEW OF APPLICATIONS.—The 
eligible entity shall review applications sub-
mitted under clause (i) in the same man-
ner as applications are reviewed under sec-
tion 5534(b). 
‘‘(D) USE
OF
FUNDS.—An eligible local 
entity that receives a subgrant under this para-
graph— 
‘‘(i) shall use the subgrant funds to— 
‘‘(I) implement teacher training 
programs to embed financial and eco-
nomic literacy and personal finance 
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education into core academic subjects 
or to effectively coordinate the teach-
ing of core academic subjects with 
teaching of financial and economic lit-
eracy and personal finance education; 
‘‘(II) administer financial and 
economic literacy assessments on not 
less than an annual basis in, at a 
minimum, the grade levels selected by 
the State pursuant to paragraph 
(2)(A); and 
‘‘(III) implement financial and 
economic literacy activities and se-
quences of study within, or coordi-
nated with, core academic subjects; 
and 
‘‘(ii) may use the subgrant funds to 
implement school-based activities, including 
after school activities, to enhance student 
understanding and experiential learning 
with consumer, economic, and personal fi-
nance concepts. 
‘‘(E) REPORT.—An eligible local entity 
that receives a subgrant under this paragraph 
shall include in the annual report card under 
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section 1111(h)(2) the same information on 
student achievement on the financial and eco-
nomic literacy assessments, administered pursu-
ant to subparagraph (D), as required, pursuant 
to section 1111(h)(2), of the other State aca-
demic 
assessments 
described 
in 
section 
1111(b)(3). 
‘‘(2) STATE
ACTIVITIES.—An eligible entity 
that receives a grant under this section shall use 25 
percent of such grant funds to carry out the fol-
lowing: 
‘‘(A) The development of financial and eco-
nomic literacy standards in not less than 3 
grade levels, including not less than 1 grade 
level in elementary school, not less than 1 grade 
level in middle school, and not less than 1 grade 
level in high school. 
‘‘(B) The development of appropriate fi-
nancial and economic literacy assessments in 
the grade levels determined under subparagraph 
(A) that are valid, reliable, and comparable 
across the State. 
‘‘(C) Teacher professional development 
programs to embed financial and economic lit-
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eracy or personal finance education into core 
academic subjects. 
‘‘(D) An evaluation of the impact of finan-
cial and economic literacy or personal finance 
education on students’ understanding of finan-
cial and economic literacy concepts. 
‘‘(f) MATCHING FUNDS.—An eligible entity that re-
ceives a grant under this section shall provide, from non- 
Federal sources, an amount equal to 25 percent of the 
amount of the grant award to carry out activities required 
under this section. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$125,000,000 for each of fiscal years 2010 through 2015. 
‘‘SEC. 5539. FINANCIAL AND ECONOMIC LITERACY AND 
ECONOMIC EDUCATION CLEARINGHOUSE. 
‘‘(a) CLEARINGHOUSE.—The Secretary shall main-
tain a clearinghouse of best practices, tools, and instruc-
tional materials for financial and economic literacy and 
personal finance instruction, aligned with voluntary na-
tionally recognized curriculum standards in such areas, for 
students of elementary school, secondary school, and post-
secondary school age (to be known as the ‘Financial and 
Economic Literacy and Economic Education Clearing-
house’). 
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‘‘(b) ACTIVITIES.—The Financial and Economic Lit-
eracy and Economic Education Clearinghouse shall collect 
and disseminate high-quality materials on financial and 
economic literacy, including best practices, professional 
development, and teaching tools that are aligned with vol-
untary nationally recognized curriculum standards in such 
areas. 
‘‘(c) ACCESSIBILITY.—The information of the Finan-
cial and Economic Literacy and Economic Education 
Clearinghouse shall— 
‘‘(1) be housed in a centrally accessible and 
user-friendly format and location; and 
‘‘(2) be easily accessible from the Department 
of Education website. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for each of fiscal years 
2010 through 2015.’’. 
(b) TABLE OF CONTENTS.—The table of contents in 
section 2 of the Elementary and Secondary Education Act 
of 1965 is amended by inserting after the item relating 
to section 5537 the following: 
‘‘Subpart 13A—Financial and Economic Literacy Education 
‘‘Sec. 5538. Financial and economic literacy education grants. 
‘‘Sec. 5539. Financial and Economic Literacy and Economic Education Clear-
inghouse.’’. 
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SEC. 3. GRANTS TO PROMOTE POSTSECONDARY FINANCIAL 
AND ECONOMIC LITERACY. 
Part A of title III of the Higher Education Act of 
1965 (20 U.S.C. 1057 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 318. GRANTS TO PROMOTE POSTSECONDARY FINAN-
CIAL AND ECONOMIC LITERACY. 
‘‘(a) AUTHORIZATION OF GRANT AWARDS.—The Sec-
retary shall award grants, on a competitive basis, to eligi-
ble entities to enable such entities to provide financial and 
economic literacy courses or course components to stu-
dents. 
‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In this sec-
tion, the term ‘eligible entity’ means— 
‘‘(1) an institution of higher education; or 
‘‘(2) a partnership consisting of— 
‘‘(A) an institution of higher education; 
‘‘(B) a nonprofit organization with experi-
ence and a proven track record in quality finan-
cial and economic literacy or personal finance 
education programs; and 
‘‘(C) a nonprofit organization with experi-
ence and a proven track record in quality pro-
fessional development for teachers leading to 
higher student achievement in skills and sub-
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jects integral to financial and economic literacy 
or personal financial education. 
‘‘(c) APPLICATION.—An eligible entity that desires to 
receive a grant under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may 
require. 
‘‘(d) MINIMUM GRANT AMOUNT.—The Secretary 
shall award grants under this section in amounts of not 
less than $500,000. 
‘‘(e) USE OF FUNDS.—An eligible entity that receives 
a grant under this section shall use the grant funds to 
develop and implement financial and economic literacy 
education, activities, student organizations, or counseling 
that increase student knowledge in consumer, economic, 
and personal financial concepts. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$125,000,000 for each of the fiscal years 2010 through 
2015.’’. 
Æ 
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