Program to Inspire Growth and Guarantee Youth Budgeting Advice and Necessary Knowledge Act
Bill: S.2816 | Sponsor: Sen. Peters, Gary C. (D-MI)
Policy area: Education

Summary:
PIGGY BANK Act or the Program to Inspire Growth and Guarantee Youth Budgeting Advice and Necessary Knowledge Act
This bill requires the Department of Education to establish a pilot program for local educational agencies to carry out youth savings match programs for students in grades 9-12.

To establish a youth savings match grant program for students in grades 
                             9 through 12.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``PIGGY BANK Act'' or the ``Program to 
Inspire Growth and Guarantee Youth Budgeting Advice and Necessary 
Knowledge Act''.

SEC. 2. PILOT YOUTH SAVINGS MATCH GRANT PROGRAM.

    (a) Definitions.--In this Act:
            (1) ESEA terms.--The terms ``local educational agency'' and 
        ``parent'' have the meaning given those terms in section 8101 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (b) Program Authorized.--
            (1) In general.--The Secretary, in collaboration with the 
        Financial Literacy and Education Commission of the Department 
        of Treasury and the Division of Consumer and Community Affairs 
        of the Board of Governors of the Federal Reserve System, shall 
        establish a pilot program to award grants to States, on a 
        competitive basis, to enable those States to select 
        participating eligible local educational agencies in the State 
        to carry out a youth savings match program, as described in 
        subsection (d).
            (2) Duration.--Grants awarded under this section shall be 
        for a period of 6 years.
    (c) Application.--Each State desiring a grant under this section 
shall submit to the Secretary an application at such time, in such 
manner, and accompanied by such information as the Secretary may 
require, which shall include, at a minimum--
            (1) a comprehensive plan of administration of the youth 
        savings match program, including how parents will be encouraged 
        to participate;
            (2) the identification of a single account trustee, which 
        shall be a State agency, such as a State Department of 
        Treasury, Office of the Governor, Lieutenant Governor, State 
        financial regulator, Comptroller, a tax-exempt nonprofit 
        organization or foundation, or a for-profit organization or 
        business with demonstrated expertise and experience in 
        successfully managing financial services;
            (3) an assurance that the State and participating eligible 
        local educational agencies in the State will participate in an 
        evaluation of the program;
            (4) an identification of the individuals who will conduct 
        the training for teachers who administer the financial literacy 
        classroom component of the program; and
            (5) a description of the goals and objectives of the 
        financial literacy classroom component of the program and an 
        overview of that program, including an overview of the topics 
        that will be part of that program.
    (d) Youth Savings Match Grant Program.--
            (1) Eligible leas.--A local educational agency shall be 
        eligible to participate in the youth savings match program if 
        that local educational agency receives funding under part A of 
        title I of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6311 et seq.).
            (2) Youth savings match program.--Each participating 
        eligible local educational agency shall use grant funds to 
        carry out a youth savings match program, through which the 
        eligible local educational agency shall ensure that--
                    (A) every year each student in grades 9 through 12 
                that is served by that eligible local educational 
                agency is notified that--
                            (i) a youth savings match program account 
                        has been established for that student, and the 
                        account will be funded in accordance with 
                        subparagraph (B);
                            (ii) in order to retain the initial deposit 
                        and matching contributions from grant funding 
                        that are deposited in the student's youth 
                        savings match program account, the student and 
                        parents may not withdraw from the student's 
                        youth savings match program account until the 
                        date that is 1 year after the date of the 
                        student's high school graduation, or expected 
                        high school graduation, unless the withdrawal 
                        is approved in accordance with subparagraph 
                        (G); and
                            (iii) upon withdrawal, funds in the youth 
                        savings match program account may be taxed;
                    (B) each student in grades 9 through 12 who is 
                served by the eligible local educational agency--
                            (i) receives $300 in an initial deposit in 
                        the participating student's youth savings match 
                        program account; and
                            (ii) receives, on a monthly basis and for a 
                        total of not more than 4 years, an amount of 
                        funds equal to the amount of funds that the 
                        participating student or such student's family 
                        contributes in that month to the student's 
                        youth savings match program account, except 
                        that such monthly match amount shall not exceed 
                        $25 and the total amount of Federal matching 
                        funds shall not exceed $300 each year;
                    (C) funds contributed to a youth savings match 
                program account are deposited in an account at a 
                depository institution (as defined in section 
                19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 
                461(b)(1)(A))) or invested in United States Treasury 
                bills, notes, or bonds;
                    (D) participating students and their families are 
                able to make deposits into the youth savings match 
                program account in person, online, or on mobile 
                devices, and are encouraged to make automatic deposits 
                into that account;
                    (E) the parents of participating students are 
                encouraged to participate in the program and contribute 
                to the student's youth savings match program account;
                    (F) any early withdrawal from a youth savings match 
                program account will require approval of the savings 
                account trustee identified in the State's application 
                under subsection (c) and such a withdrawal will only be 
                approved if the funds are withdrawn for the purpose of 
                paying for postsecondary education, a career and 
                technical education program of study, homeownership, 
                business ownership, medical hardship, or for another 
                purpose that the eligible local educational agency 
                determines to be an authorized purpose;
                    (G) if funds are withdrawn from a youth savings 
                match program account that are not approved under 
                subparagraph (F)--
                            (i) the student will lose any Federal grant 
                        money that has been contributed to the account 
                        (including the initial deposit, matching 
                        contributions, and bonus contributions, as 
                        described in subparagraph (B)), and no further 
                        matching funds will be contributed to the 
                        account; and
                            (ii) the student and parent may still 
                        retain, and may withdraw funds that the student 
                        or parent has contributed to the student's 
                        youth savings match program account; and
                    (H) participating students receive financial 
                literacy education, in a manner determined by the State 
                receiving the grant, which shall include information 
                about how funds in the youth savings match program 
                account may be taxed and explaining how taxation works 
                for interest-bearing or investment accounts.
    (e) Evaluation.--The Secretary shall carry out an evaluation of the 
grant program under this section to determine which aspects of the 
program have been effective and which aspects of the program have not 
been effective.
    (f) Report.--Not later than 4 years after the implementation of the 
grant program under this section, the Secretary shall prepare and 
submit a report to Congress containing the results of the evaluation 
under subsection (e).
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this Act such sums as may be necessary for 
fiscal year 2022 and each of the 3 succeeding fiscal years.
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