H.R.486 - Young Americans Financial Literacy Act (119th Congress)
Summary
H.R. 486, the Young Americans Financial Literacy Act, aims to establish a grant program within the Bureau of Consumer Financial Protection. This program would fund centers of excellence focused on financial literacy education for young people and families aged 8-24. The bill emphasizes research, development, planning, implementation, and evaluation of effective financial literacy programs.
Expected Effects
If enacted, this bill would lead to the creation of financial literacy education centers. These centers would develop and implement programs, conduct research, and disseminate financial literacy information. The goal is to improve financial literacy among young Americans and their families, addressing issues like debt management, savings, and financial planning.
Potential Benefits
- Increased financial literacy among young people and families.
- Development of research-based financial literacy education programs.
- Improved access to financial literacy information through various channels, including digital platforms.
- Reduction in student loan default rates through better debt management education.
- Support for at-risk populations, including minority and disadvantaged individuals.
Potential Disadvantages
- Potential for inefficient allocation of grant funds if not properly managed.
- Risk of programs not being effectively implemented or reaching the intended audience.
- Possible duplication of existing financial literacy efforts.
- Administrative overhead associated with managing the grant program.
- The bill authorizes grants until the end of fiscal year 2029, after which funding would cease unless reauthorized.
Constitutional Alignment
The bill's focus on education and economic well-being aligns with the general welfare clause of the Constitution's preamble. Specifically, the preamble states the Constitution is intended to "promote the general Welfare". While the Constitution does not explicitly mention financial literacy, Congress has broad authority to enact legislation that it deems necessary and proper for carrying out its enumerated powers, as per Article I, Section 8. The establishment of grant programs falls within this purview.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).