SEC. 2. REQUIREMENT TO ESTABLISH A PILOT PROGRAM 
TO AWARD GRANTS TO STATE AND LOCAL 
EDUCATIONAL AGENCIES TO DEVELOP FI-
NANCIAL LITERACY PROGRAMS IN ELEMEN-
TARY AND SECONDARY SCHOOLS. 
(a) IN GENERAL.— 
(1) PILOT PROGRAM.—The Secretary of Edu-
cation (referred to in this Act as the ‘‘Secretary’’) 
shall establish a pilot program to award grants to 
State and local educational agencies to develop fi-
nancial literacy programs in elementary and sec-
ondary schools. 
(2) GRANT
AWARDS.—The Secretary shall 
award grants under the pilot program to 10 State 
or local education agencies. 
(b) APPLICATION.— 
(1) IN
GENERAL.—Each State or local edu-
cational agency that desires a grant under the pilot 
program shall submit an application to the Secretary 
at such time, in such manner, and accompanied by 
such information as the Secretary may reasonably 
require. 
(2) CONTENTS.—Each grant application under 
the pilot program shall describe how— 
(A) funds will be used to incorporate finan-
cial literacy into the curriculum; 
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(B) a local educational agency will work 
with State educational agencies to ensure that 
the curriculum is in compliance with State 
standards; 
(C) the funds will be used for professional 
development; 
(D) a local educational agency will coordi-
nate its financial literacy program with local, 
State, and Federal programs (or other commu-
nity initiatives, if applicable); and 
(E) a local educational agency will measure 
performance and evaluate the effectiveness of 
its program. 
(c) USE OF FUNDS.—A grant award under the pilot 
program shall be used to integrate financial literacy pro-
grams into elementary and secondary school curriculums; 
to carry out professional development, including fellow-
ships for financial literacy instructors and personnel (in-
cluding licensed teachers, education administrators, and 
bank personnel) involved in the education of financial lit-
eracy programs; to conduct program evaluations and sur-
veys; and to collect, analyze, and develop information nec-
essary to accomplish the pilot program. 
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(d) MAXIMUM GRANT.—A grant award under the 
pilot program to any one State or local educational agency 
shall be not more than $250,000 for any fiscal year. 
(e) LIMITATION ON ADMINISTRATIVE COSTS.—Not 
more than 4 percent of the amounts made available under 
the pilot program for any fiscal year may be used for ad-
ministrative costs to carry out the pilot program. 
(f) REPORTS.— 
(1) REPORT BY A STATE OR LOCAL EDUCATION 
AGENCY.—Not later than 90 days after the conclu-
sion of the pilot program, a State or local edu-
cational agency shall prepare and submit to the Sec-
retary a report that details which curriculums and 
policies implemented in the financial literacy pro-
gram were successful or unsuccessful, which curricu-
lums and policies they would recommend to other 
education agencies, and such further guidelines for 
this report as the Secretary shall deem necessary. 
(2) REPORT BY THE SECRETARY.—Not later 
than 180 days after the conclusion of the pilot pro-
gram, the Secretary shall submit to the Committee 
on Financial Services and the Committee on Edu-
cation and Labor a report on the pilot program. 
(g) FINANCIAL LITERACY DEFINED.—The term ‘‘fi-
nancial literacy’’ means the acquisition of knowledge and 
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understanding of all personal financial matters and trans-
actions, from finance management and investment, to 
being able to make sound financial decisions, including but 
not limited to understanding— 
(1) how to balance a checkbook, read a credit 
card statement, and calculate interest rates; 
(2) what a pay stub is and why Federal and 
State taxes, Social Security, and Medicare are de-
ducted from wages; 
(3) the differences between various types of 
bank accounts; 
(4) the significance of a credit score and how 
to read credit reports; 
(5) the marketing techniques frequently used by 
individuals and businesses to attract patrons; and 
(6) the importance of saving for college and re-
tirement. 
(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary for each of the fiscal years 2010 through 2015 to 
carry out the pilot program. 
Æ 
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