The Young Americans Financial Literacy Act would authorize a grant program within the CFPB to establish centers of excellence that research, develop, implement, and evaluate financial literacy education for young people and families ages 8 through 24. Grants would be awarded to eligible institutions to build and sustain these centers, with activities ranging from curriculum design to professional development and program evaluation.
A sunset provision caps new grants after FY 2029 and requires annual reporting to Congress on recipients and populations served. The bill also emphasizes accessibility, evidence-based content, and data sharing to improve outcomes and accountability.
At a Glance
What It Does
The Director of the CFPB, in consultation with the Financial Literacy and Education Commission, will grant funds to eligible institutions to establish centers of excellence for financial literacy education (ages 8–24). Grants cover research, planning, implementation, and evaluation of programs with a defined core competency framework.
Who It Affects
Eligible institutions include partnerships among higher education, government agencies, nonprofits, financial institutions, and small organizations. The programs target young people and families, with attention to at-risk populations and diverse cultural or linguistic needs.
Why It Matters
This creates a standardized, evaluative, and scalable approach to financial literacy education, aiming to raise outcomes for youth and maintain a data-driven path toward greater financial capability and reduced debt risk.
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What This Bill Actually Does
The bill would set up a grant-based mechanism within the Consumer Financial Protection Bureau to support centers of excellence in financial literacy for people ages 8 to 24 and their families. These centers would be established through competitive grants to eligible institutions—such as colleges, state or local agencies, nonprofits, and financial firms—working in partnership.
The centers’ work includes researching core financial literacy concepts, developing instructional materials, delivering professional development, and evaluating program effectiveness.
The Five Things You Need to Know
Grants funded through a CFPB program to create centers of excellence in financial literacy for ages 8–24.
Annual grant funding range of $27.5 million to $55 million, with no new grants after FY 2029.
Applications prioritized by clear definitions of financial literacy, targeting of at-risk groups, age- and socioeconomically appropriate content, and data-sharing commitments.
Eligible institutions include HEIs, government agencies, nonprofits, financial institutions, and small partnering organizations.
Content must be delivered accessibly via traditional methods and digital platforms, with user-friendly websites and broad dissemination.
Section-by-Section Breakdown
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Authorization to fund centers of excellence
The Director of the CFPB, in consultation with the Financial Literacy and Education Commission, shall make competitive grants to eligible institutions to establish centers of excellence that support research, development and planning, implementation, and evaluation of financial literacy education for youths aged 8–24. This creates a formal grant mechanism to seed and sustain centers that can produce scalable, evidence-based programs.
Authorized activities
Grants may fund a range of activities: developing and implementing research-based curricula; creating instructional materials and outreach to at-risk groups; delivering professional development for educators; increasing access to financial literacy information; reducing student loan defaults through debt-management programs; ongoing research and evaluation; and establishing assessment measures to demonstrate effectiveness and potential for replication.
Application priority criteria
Applicants will be evaluated with emphasis on clear outcomes definitions, proven reach to diverse or at-risk populations, age- and economically appropriate content, alignment with educational standards, explicit goals of financial independence, sustainable delivery models, professional development, inclusivity considerations, asset-building emphasis, and transparent sharing of effectiveness data.
Standards and procedures
The Director will set application and evaluation standards, distribution criteria, and other necessary procedures. This ensures consistency in how grants are awarded, monitored, and assessed across centers.
Content delivery requirements
Grant recipients must deliver content through traditional education channels and digital means, including social media. Websites should be user-friendly and free of overly dense content to support comprehension.
Grant amounts and duration
Grants must total at least $27.5 million and may not exceed $55 million per fiscal year. No new grants may be awarded after the end of FY 2029, creating a defined funding horizon and potential need for renewal or redesign after that date.
Reporting to Congress
The Director must issue an annual report listing grant recipients and describing the populations served by each grant, providing transparency about program reach and impact.
Definitions
Defines eligible institutions as partnerships among higher education, state/local government agencies, nonprofits, financial institutions, or small partnering organizations. It also clarifies the meaning of an institution of higher education for purposes of the program.
Table of contents amendment
This section amends the table of contents in the Dodd-Frank Act to insert a new Sec. 1037 (now 1037) and Sec. 1038 (effective date) following the changes introduced by the bill.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Colleges and universities that host centers and collaborate on research and curriculum development, gaining grant-supported capacity and visibility.
- State and local governments partnering to implement and scale financial literacy programs in schools and communities; they gain structured funding and guidance.
- Nonprofit organizations dedicated to financial literacy expand their reach and share evidence-based practices.
- Youth and families aged 8–24, including at-risk or underserved populations, receive improved access to financial literacy resources and skills.
- Educators and school districts who integrate research-based materials and professional development into curricula.
Who Bears the Cost
- The CFPB’s federal budget to provide grants and administer the program, funded by taxpayers.
- Grantee institutions that must allocate staff time, reporting, and administrative resources to manage centers and programs.
- Local governments and school districts that may incur costs to coordinate and sustain programming beyond grant periods.
- Participants and partner organizations contributing in-kind efforts or matching contributions as required by grant agreements.
Key Issues
The Core Tension
Balancing a nationwide, evidence-based expansion of youth financial literacy with finite federal funding and the need for durable, scalable programs that can survive beyond the grant window.
The bill creates a substantial federal program with a clear funding envelope and sunset, which raises questions about long-term sustainability and the risk of program discontinuity after FY 2029. Implementation hinges on rigorous standards, evaluation, and data-sharing practices that must balance accountability with privacy and operational burden.
There is also a potential overlap with existing financial literacy initiatives; ensuring coordination to avoid duplication while maximizing impact will be essential. Additionally, requiring accessibility and broad dissemination could strain some recipients if digital divides or resource constraints limit capacity to reach all intended populations.
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