shall be reallocated to States with approved plans 
under this section in accordance with paragraph (1). 
‘‘(d) USE OF GRANT FUNDS.— 
‘‘(1) REQUIRED
USES.—A grant made to a 
State educational agency under this part shall be 
used— 
‘‘(A) to provide funds to local educational 
agencies and public schools to carry out finan-
cial education programs for students in kinder-
garten through grade 12 based on the concept 
of achieving financial literacy through the 
teaching of personal financial management 
skills and the basic principles involved with 
earning, spending, saving, and investing; 
‘‘(B) to carry out professional development 
programs to prepare teachers and administra-
tors for financial education; and 
‘‘(C) to monitor and evaluate programs 
supported under subparagraphs (A) and (B). 
‘‘(2) LIMITATION ON ADMINISTRATIVE COSTS.— 
A State educational agency receiving a grant under 
subsection (a) may use not more than 4 percent of 
the total amount of the grant in each fiscal year for 
the administrative costs of carrying out this section. 
VerDate Aug 31 2005 
22:51 Mar 31, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5046.IH
H5046
rwilkins on PROD1PC63 with BILLS
‘‘(e) REPORT TO THE SECRETARY.—Each State edu-
cational agency receiving a grant under this section shall 
transmit a report to the Secretary with respect to each 
fiscal year for which a grant is received. The report shall 
describe the programs supported by the grant and the re-
sults of the State educational agency’s monitoring and 
evaluation of such programs. 
‘‘SEC. 4403. CLEARINGHOUSE. 
‘‘(a) AUTHORITY.—Subject to the availability of ap-
propriations, the Secretary shall make a grant to, or exe-
cute a contract with, an eligible entity with substantial ex-
perience in the field of financial education, such as the 
Jump$tart Coalition for Personal Financial Literacy, to 
establish, operate, and maintain a national clearinghouse 
(in this part referred to as the ‘Clearinghouse’) for in-
structional materials and information regarding model fi-
nancial education programs and best practices. 
‘‘(b) ELIGIBLE ENTITY.—In this section, the term 
‘eligible entity’ means a national nonprofit organization 
with a proven record of— 
‘‘(1) cataloging youth financial literacy mate-
rials; and 
‘‘(2) providing support services and materials to 
schools and other organizations that work to pro-
mote youth financial literacy. 
VerDate Aug 31 2005 
22:51 Mar 31, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5046.IH
H5046
rwilkins on PROD1PC63 with BILLS
‘‘(c) APPLICATION.—An eligible entity desiring to es-
tablish, operate, and maintain the Clearinghouse shall 
submit an application to the Secretary at such time, in 
such manner, and accompanied by such information, as 
the Secretary may reasonably require. 
‘‘(d) BASIS AND TERM.—The Secretary shall make 
the grant or contract authorized under subsection (a) on 
a competitive, merit basis for a term of 5 years. 
‘‘(e) USE OF FUNDS.—The Clearinghouse shall use 
the funds provided under a grant or contract made under 
subsection (a)— 
‘‘(1) to maintain a repository of instructional 
materials and related information regarding finan-
cial education programs for elementary schools and 
secondary schools, including kindergartens, for use 
by States, localities, and the general public; 
‘‘(2) to disseminate to States, localities, and the 
general public, through electronic and other means, 
instructional materials and related information re-
garding financial education programs for elementary 
schools and secondary schools, including kinder-
gartens; and 
‘‘(3) to the extent that resources allow, to pro-
vide technical assistance to States, localities, and the 
general public on the design, establishment, and im-
VerDate Aug 31 2005 
22:51 Mar 31, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5046.IH
H5046
rwilkins on PROD1PC63 with BILLS
plementation of financial education programs for ele-
mentary schools and secondary schools, including 
kindergartens. 
‘‘(f) CONSULTATION.—The chief executive officer of 
the eligible entity selected to establish and operate the 
Clearinghouse shall consult with the Department of the 
Treasury and the Securities Exchange Commission with 
respect to its activities under subsection (e). 
‘‘(g) SUBMISSION TO CLEARINGHOUSE.—Each Fed-
eral agency or department that develops financial edu-
cation programs and instructional materials for such pro-
grams shall submit to the Clearinghouse information on 
the programs and copies of the materials. 
‘‘(h) APPLICATION OF COPYRIGHT LAWS.—In car-
rying out this section the Clearinghouse shall comply with 
the provisions of title 17 of the United States Code. 
‘‘SEC. 4404. EVALUATION AND REPORT. 
‘‘(a) PERFORMANCE
MEASURES.—The Secretary 
shall develop measures to evaluate the performance of pro-
grams assisted under sections 4402 and 4403. 
‘‘(b) EVALUATION ACCORDING
TO PERFORMANCE 
MEASURES.—Applying the performance measures devel-
oped under subsection (a), the Secretary shall evaluate 
programs assisted under sections 4402 and 4403— 
VerDate Aug 31 2005 
22:51 Mar 31, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5046.IH
H5046
rwilkins on PROD1PC63 with BILLS
‘‘(1) to judge their performance and effective-
ness; 
‘‘(2) to identify which of the programs rep-
resent the best practices of entities developing finan-
cial education programs for students in kindergarten 
through grade 12; and 
‘‘(3) to identify which of the programs may be 
replicated and used to provide technical assistance to 
States, localities, and the general public. 
‘‘(c) REPORT.—For each fiscal year for which there 
are appropriations under section 4407(a), the Secretary 
shall transmit a report to Congress describing the status 
of the implementation of this part. The report shall in-
clude the results of the evaluation required under sub-
section (b) and a description of the programs supported 
under section 4402. 
‘‘SEC. 4405. DEFINITIONS. 
‘‘In this part: 
‘‘(1) FINANCIAL EDUCATION.—The term ‘finan-
cial education’ means educational activities and ex-
periences, planned and supervised by qualified teach-
ers, that enable students to understand basic eco-
nomic and consumer principles, acquire the skills 
and knowledge necessary to manage personal and 
household finances, and develop a range of com-
VerDate Aug 31 2005 
22:51 Mar 31, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5046.IH
H5046
rwilkins on PROD1PC63 with BILLS