Title: Consumer Financial Education and Empowerment Act
Policy area: Finance and Financial Sector

Summary:
Consumer Financial Education and Empowerment Act
This bill establishes within the Consumer Financial Protection Bureau a program to award grants to certain nonprofit organizations, state governments, and local governments for financial literacy programs. Programs eligible for grants may include education regarding credit, student loan debt, homeownership, investments, retirement, or starting a business.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6012 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6012

To require the Director of the Bureau of Consumer Financial Protection 
to establish a grant program to facilitate financial literacy programs, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 2020

Mr. David Scott of Georgia (for himself, Mr. Stivers, Mrs. Beatty, Mr. 
    Hill of Arkansas, Ms. Dean, and Mr. Loudermilk) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
To require the Director of the Bureau of Consumer Financial Protection 
to establish a grant program to facilitate financial literacy programs, 
                        and for other purposes.

    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 ``Consumer Financial Education and 
Empowerment Act''.

SEC. 2. FINANCIAL LITERACY GRANT PROGRAM.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Director of the Bureau of Consumer Financial 
Protection shall establish a program to award grants on a competitive 
basis to eligible entities to facilitate financial literacy programs as 
described in subsection (d).
    (b) Application Requirements.--To be eligible to be awarded a grant 
under the program established under subsection (a), an eligible entity 
shall submit an application to the Director at such time, in such 
manner, and containing such information as the Director may require, 
including information on--
            (1) the curriculum and design of the financial literacy 
        program proposed by the eligible entity, including a 
        description of how such program meets the requirements of 
        subsection (d);
            (2) expected participants in the proposed financial 
        literacy program;
            (3) who is expected to be employed or otherwise involved 
        with the proposed financial literacy program, including--
                    (A) administrators;
                    (B) consultants; and
                    (C) financial advisors; and
            (4) a prospective budget for the proposed financial 
        literacy program.
    (c) Grants.--
            (1) Amounts.--The Director shall determine the amount of 
        each grant awarded under the program established under 
        subsection (a).
            (2) Term.--A grant awarded under the program established 
        under subsection (a) shall be for a term of 12 months.
            (3) Considerations.--In awarding grants under the program 
        established under subsection (a), the Director may consider 
        whether the proposed financial literacy program of an applicant 
        would address the types of abuse that result in a penalty being 
        deposited into the Consumer Financial Civil Penalty Fund 
        established under section 1017(d) of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act (12 U.S.C. 5497(d)).
            (4) Renewal.--An eligible entity may apply to renew a grant 
        awarded under the program established under subsection (a) by 
        submitting to the Director a simplified renewal application 
        that shall receive expedited review.
            (5) Bureau of consumer financial protection annual 
        financial literacy report.--In awarding grants under this 
        section, the Director shall consider information provided by 
        the annual report that is required under section 1013(d)(4) of 
        the Dodd-Frank Wall Street Reform and Consumer Protection Act 
        (12 U.S.C. 5493(d)(4)).
    (d) Financial Literacy Program Described.--A financial literacy 
program described in this subsection is a program that provides the 
following:
            (1) Instruction to participants, including individuals who 
        provide instruction with respect to financial literacy 
        education, on one or more of the following:
                    (A) Personal financial wellness.
                    (B) Credit and alternatives to credit.
                    (C) Management of student loan debt.
                    (D) Financial counseling for individuals who seek 
                to attend a college, university, or vocational school.
                    (E) Preparation for homeownership.
                    (F) Basic investing.
                    (G) Financial saving, planning, and management.
                    (H) Tax planning.
                    (I) Personal information security.
                    (J) Preparation for retirement.
                    (K) Entrepreneurship assistance or assistance in 
                starting a business.
                    (L) Other topics as determined by the Director.
            (2) An in-person instruction component that--
                    (A) may be provided as a webinar, an in-classroom 
                experience, or one-on-one financial coaching;
                    (B) includes--
                            (i) live, real-time instruction; and
                            (ii) an opportunity for students to engage 
                        with an instructor; and
                    (C) is not primarily comprised of self-taught 
                instruction.
    (e) Funding.--
            (1) In general.--The Director shall, in accordance with 
        section 1017(d) of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act (12 U.S.C. 5497(d)), use amounts in the 
        Consumer Financial Civil Penalty Fund to carry out this Act.
            (2) Amounts.--To carry out this Act, the Director shall use 
        until expended not less than--
                    (A) in fiscal year 2021, $50,000,000; and
                    (B) in each allocation period starting after fiscal 
                year 2021, the lessor of--
                            (i) $25,000,000; or
                            (ii) after allocation to victims has been 
                        determined for the prior allocation period, 50 
                        percent of the remaining amounts collected 
                        during the prior allocation period.
            (3) Conforming amendment.--Section 1017(d)(2) of the Dodd-
        Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 
        5497(d)(2)) is amended--
                    (A) by striking ``, the Bureau may use'' and 
                inserting ``, the Bureau--
                    ``(A) may use'';
                    (B) by striking ``programs.'' and inserting 
                ``programs; and''; and
                    (C) by adding at the end the following:
                    ``(B) shall use such funds for the grant program 
                established by the Consumer Financial Education and 
                Empowerment Act.''.
    (f) Financial Literacy and Education Commission Report.--Not later 
than 2 years after the Director establishes the program under 
subsection (a), and every 5 years thereafter, the Financial Literacy 
and Education Commission shall submit to Congress and the Director a 
report that provides recommendations on how to improve such program.
    (g) Definitions.--In this section:
            (1) Allocation period.--The term ``allocation period'' 
        means the biannual allocation period of funds to a class of 
        victims that occurs according to the schedule established 
        pursuant to section 1075.105(b) of title 12, Code of Federal 
        Regulations (or any successor regulation).
            (2) Commission.--The term ``Commission'' means the 
        Financial Literacy and Education Commission, established under 
        title V of the Fair and Accurate Credit Transactions Act of 
        2003 (20 U.S.C. 9701 et seq.).
            (3) Director.--The term ``Director'' means the Director of 
        the Bureau of Consumer Financial Protection.
            (4) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State government, local government, or agency 
                of a State or local government; or
                    (B) a nonprofit organization that--
                            (i) has knowledge of personal financial 
                        management;
                            (ii) has experience providing financial 
                        education; and
                            (iii) has a history of achieving goals and 
                        objectives of financial literacy programs.
            (5) Nonprofit organization.--The term ``nonprofit 
        organization'' means an organization that is described in 
        section 501(c)(3) of the Internal Revenue Code of 1986 (26 
        U.S.C. 501(c)(3)) and is exempt from taxation under section 
        501(a) of such Code.
            (6) State.--The term ``State'' means each State of the 
        United States, the District of Columbia, each territory or 
        possession of the United States, and each federally recognized 
        Indian Tribe.
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