Sponsors (51)
The bill expands federally funded, evidence-based financial education for youth and underserved populations—likely improving financial capability and reducing borrower risk—but requires new federal spending and creates risks of uneven implementation, administrative bias, and strain on school resources, with program continuity limited by a sunset provision.
Students and young adults (approximately ages 8–24) would gain funded, evidence-based personal finance education and materials tailored to their age, improving financial knowledge, decision-making, workforce readiness, and long-term money management.
Underserved groups — including low-income and at‑risk youth and military personnel and their families — would receive prioritized, culturally and linguistically appropriate programs and supports, increasing reach to communities that often lack such resources.
Borrowers served by the funded centers could see efforts to reduce student loan default rates, which may preserve credit and lower future financial stress for recent graduates.
Taxpayers face increased federal spending — approximately $27.5 million to $55 million per year through FY2029 — to fund the program, representing a recurring budgetary cost.
Schools and school budgets could be strained if programs require extra classroom time or new resources, potentially displacing other curricular or extracurricular priorities.
Administrative and allocation risks — including reliance on self-reported literacy, discretionary application/evaluation standards, and evidence/sustainability requirements — could lead to inefficient resource targeting and favor larger institutions over small community groups.
Based on analysis of 3 sections of legislative text.
Authorizes CFPB grants to create Centers of Excellence in financial literacy for ages 8–24 with annual funding of $27.5M–$55M and a sunset after FY2029.
Official title: To establish a grant program in the Bureau of Consumer Financial Protection to fund the establishment of centers of excellence to support research, development and planning, implementation, and evaluation of effective programs in financial literacy education for young people and families ages 8 through 24 years old, and for other purposes.
Introduced January 16, 2025 by André Carson · Last progress January 16, 2025
Creates a new CFPB grant program to fund regional Centers of Excellence that develop and deliver research-based financial literacy education for young people and families ages 8–24. The CFPB may award competitive grants to eligible institutions, set standards for applications and accessibility, and must report recipients and funding annually to Congress. Grants are authorized at a minimum of $27.5 million and capped at $55 million per fiscal year, with authority expiring after fiscal year 2029. The program funds curriculum development, teacher training, outreach, evaluation, and related activities aimed at improving financial outcomes including reducing student loan defaults.