Improving Access to Financial Coaching Act of 2026
- Bill Number
- H.R. 8373
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-20: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-07-10T08:06:41Z
AI-Generated Summary
Purpose
The Improving Access to Financial Coaching Act of 2026 aims to create a federal grant program to expand access to financial coaching services. Financial coaching provides personalized guidance on managing money, reducing debt, building savings, and using credit responsibly. The bill seeks to support low- and moderate-income households, strengthen community providers, improve consumer financial health, and develop national standards for coach certification.
Key Provisions
- Grant Program Establishment: The Secretary of the Treasury, through the Director of the Office of Consumer Policy, must launch the program within one year of enactment to award grants for financial coaching.
- Eligible Entities:
- Nonprofits or community-based organizations.
- Community Development Financial Institutions (CDFIs): Nonprofit lenders serving underserved communities.
- Minority Depository Institutions (MDIs): Banks primarily serving racial or ethnic minorities.
- Must have operated for at least one year, serve low-income areas (e.g., census tracts at or below 120% of area median family income, minority-majority areas, or rural zones), or clients at or below 120% of Area Median Income (AMI) (average income for a specific region).
- For non-English speaking areas, must partner with language service providers.
- Application Requirements: Entities submit details on their organization, staff qualifications (including coach certifications), work plan, budget, and languages served.
- Grant Uses:
- Direct support for the entity's operations.
- Subgrants and technical assistance to other eligible providers.
- Additional Duties: The Director must promote industry best practices and develop standardized credentialing for coaches and agencies.
- Funding: Authorizes $100 million for fiscal years 2026–2028, with 55% for direct grants and 45% for subgrants (proportions adjustable if needed).
Significant Changes to Existing Law
- Introduces a new federal grant program administered by Treasury's Office of Consumer Policy, which previously lacked this specific authority for financial coaching.
- No direct amendments to prior laws, but references definitions from existing statutes (e.g., CDFI and MDI definitions remain unchanged).
Potential Impacts
- Citizens: Increased access to free or low-cost financial coaching for low-income, minority, rural, or non-English-speaking households, potentially leading to better credit scores, savings, debt reduction, and economic stability.
- Government Agencies: Treasury gains responsibility for program administration, evaluation, and research on coach standards, requiring new staffing and oversight.
- No notable international relations impacts.
Main Stakeholders
- Primary Beneficiaries: Low- and moderate-income individuals, families in underserved (e.g., minority, rural, low-AMI) areas.
- Providers: Nonprofits, CDFIs, and MDIs delivering coaching services.
- Government: U.S. Department of the Treasury (Office of Consumer Policy).
- Indirect: Financial coaches seeking standardized credentials and community partners for language services.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Congress's spending power to authorize grants; promotes evidence-based practices without mandating private sector changes.
- Constitutional: Standard federal program under enumerated powers (e.g., general welfare clause); no apparent free speech, due process, or federalism concerns.
- Political: Targets economic equity and mobility; could foster bipartisan support via community development focus, but funding levels may spark debates on federal spending priorities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Garcia, Sylvia R. [D-TX-29]
Cosponsors (8)
Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Carson, André [D-IN-7], Rep. Titus, Dina [D-NV-1], Rep. Green, Al [D-TX-9], Rep. Tlaib, Rashida [D-MI-12], Rep. Johnson, Julie [D-TX-32], Rep. Sykes, Emilia Strong [D-OH-13], Rep. Grijalva, Adelita S. [D-AZ-7]
Recent Actions
- 2026-04-20: Referred to the House Committee on Financial Services.
- 2026-04-20: Introduced in House
- 2026-04-20: Introduced in House
Bill Versions
- Improving Access to Financial Coaching Act of 2026 — issued 2026-04-20 — PDF (7 pages)