Youth Financial Learning Act

Bill Number

H.R. 7183

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Education

Status

Introduced

Latest Action

2026-01-21: Referred to the House Committee on Education and Workforce.

Last Updated

2026-02-18T16:20:49Z

AI-Generated Summary

Purpose

The Youth Financial Learning Act aims to enhance financial literacy among elementary and secondary school students by providing federal grants to integrate financial education into public school curricula. This includes teaching concepts like personal finance, consumer skills, economic principles, entrepreneurship, credit, student loans, and financial aid through hands-on learning.

Key Provisions

• Grant Authorization: The U.S. Secretary of Education awards competitive grants to State Educational Agencies (SEAs) for up to 4 years to support financial literacy programs in public elementary and secondary schools.
• Application Requirements: SEAs must submit applications detailing subgrant distribution to Local Educational Agencies (LEAs), plans for program sustainability post-grant, consultation with teachers, principals, parents, and students, and efforts to ensure geographic diversity (urban, rural, suburban areas).
• Use of Funds by SEAs:
• Up to 10% for state-level activities like technical assistance, curriculum development, guidance to LEAs, or evaluating program impacts on student financial knowledge.
• Remaining funds (at least 90%) awarded as subgrants to LEAs, prioritizing those serving high-need or low-performing schools (e.g., under school improvement plans per the Elementary and Secondary Education Act).
• Use of Subgrant Funds by LEAs:
• Implement or expand school-based financial literacy curricula as a major part of classes.
• Form partnerships with community-based organizations for innovative, evidence-based activities (e.g., after-school programs).
• Offer professional development to integrate financial literacy into broader education, including entrepreneurship.
• Matching Requirement: SEAs must match 25% of grant funds with non-federal sources.
• Supplement, Not Supplant: Funds must add to, not replace, existing federal or state education funding.
• Funding: Authorizes appropriations as needed for fiscal year 2026 and the next 4 years.

Significant Changes to Existing Law

This bill introduces a new grant program within the framework of the Elementary and Secondary Education Act of 1965, which already defines key terms like "local educational agency" and "well-rounded education." It adds targeted incentives for financial literacy without altering core requirements of that act, such as school accountability or federal funding formulas, but expands allowable uses of education funds to prioritize personal finance education in high-need areas.

Potential Impacts

• On Government Agencies: Increases administrative workload for the Department of Education in awarding and overseeing grants; requires SEAs to manage subgrants, evaluations, and matching funds, potentially straining budgets in underfunded states.
• On Citizens: Improves financial knowledge for students, particularly in low-performing or disadvantaged schools, leading to better long-term outcomes like informed decision-making on loans and savings; benefits parents through consulted program design.
• On International Relations: Minimal direct impact, as it focuses on domestic education; indirectly supports U.S. economic competitiveness by building a financially literate workforce.

Main Stakeholders Affected

• Students: Elementary and secondary public school students, especially in high-need or low-performing schools, who gain access to financial education.
• Educators and Schools: Teachers, principals, and LEAs/SEAs, who receive funding for curricula, training, and partnerships.
• Community Organizations: Non-profits or groups partnering with schools for after-school or innovative programs.
• Parents and Families: Involved in program consultation, with indirect benefits from students' improved financial skills.
• Federal and State Governments: Funders and overseers, including the Department of Education.

Notable Legal, Constitutional, or Political Implications

• Legal: Aligns with federal authority under the Spending Clause (U.S. Constitution, Article I, Section 8) to fund education conditionally; requires evidence-based activities but avoids mandating specific curricula, preserving state control over education content.
• Constitutional: No apparent conflicts with the 10th Amendment (state powers over education), as participation is voluntary and grant-based; promotes equity without infringing on free speech or privacy in financial topics.
• Political: Bipartisan sponsorship (e.g., by Reps. Lynch, Boyle, Carson) suggests broad support for youth empowerment; could influence future education policy by highlighting financial literacy as a national priority, though funding levels depend on congressional appropriations.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Lynch, Stephen F. [D-MA-8]

Cosponsors (10)

Rep. Boyle, Brendan F. [D-PA-2], Rep. Carson, André [D-IN-7], Rep. Case, Ed [D-HI-1], Rep. Clarke, Yvette D. [D-NY-9], Rep. Titus, Dina [D-NV-1], Rep. Fields, Cleo [D-LA-6], Rep. Strickland, Marilyn [D-WA-10], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Evans, Dwight [D-PA-3], Rep. Johnson, Henry C. "Hank" [D-GA-4]

Recent Actions

• 2026-01-21: Referred to the House Committee on Education and Workforce.
• 2026-01-21: Introduced in House
• 2026-01-21: Introduced in House

Bill Versions

• Youth Financial Learning Act — issued 2026-01-21 — PDF (6 pages)