[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2022 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 2022
To establish a youth savings match grant program for students in grades
9 through 12.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 15, 2023
Mr. Peters (for himself and Ms. Lummis) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
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 the 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 2024 and each of the 3 succeeding fiscal years.
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