PIGGY BANK Act

II 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘PIGGY BANK Act’’ 4 or the ‘‘Program to Inspire Growth and Guarantee Youth 5 Budgeting Advice and Necessary Knowledge Act’’. 6 SEC. 2. PILOT YOUTH SAVINGS MATCH GRANT PROGRAM. 7 (a) DEFINITIONS.—In this Act: 8 (1) ESEA TERMS.—The terms ‘‘local edu- 9 cational agency’’ and ‘‘parent’’ have the meaning 10 VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 2022 IS given those terms in section 8101 of the Elementary 1 and Secondary Education Act of 1965 (20 U.S.C. 2 7801). 3 (2) SECRETARY.—The term ‘‘Secretary’’ means 4 the Secretary of Education. 5 (b) PROGRAM AUTHORIZED.— 6 (1) IN GENERAL.—The Secretary, in collabora- 7 tion with the Financial Literacy and Education 8 Commission of the Department of the Treasury and 9 the Division of Consumer and Community Affairs of 10 the Board of Governors of the Federal Reserve Sys- 11 tem, shall establish a pilot program to award grants 12 to States, on a competitive basis, to enable those 13 States to select participating eligible local edu- 14 cational agencies in the State to carry out a youth 15 savings match program, as described in subsection 16 (d). 17 (2) DURATION.—Grants awarded under this 18 section shall be for a period of 6 years. 19 (c) APPLICATION.—Each State desiring a grant 20 under this section shall submit to the Secretary an appli- 21 cation at such time, in such manner, and accompanied by 22 such information as the Secretary may require, which shall 23 include, at a minimum— 24 VerDate Sep 11 2014 02:05 Jul 11, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 2022 IS (1) a comprehensive plan of administration of 1 the youth savings match program, including how 2 parents will be encouraged to participate; 3 (2) the identification of a single account trust- 4 ee, which shall be a State agency, such as a State 5 Department of Treasury, Office of the Governor, 6 Lieutenant Governor, State financial regulator, 7 Comptroller, a tax-exempt nonprofit organization or 8 foundation, or a for-profit organization or business 9 with demonstrated expertise and experience in suc- 10 cessfully managing financial services; 11 (3) an assurance that the State and partici- 12 pating eligible local educational agencies in the State 13 will participate in an evaluation of the program; 14 (4) an identification of the individuals who will 15 conduct the training for teachers who administer the 16 financial literacy classroom component of the pro- 17 gram; and 18 (5) a description of the goals and objectives of 19 the financial literacy classroom component of the 20 program and an overview of that program, including 21 an overview of the topics that will be part of that 22 program. 23 (d) YOUTH SAVINGS MATCH GRANT PROGRAM.— 24 VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 2022 IS (1) ELIGIBLE LEAS.—A local educational agen- 1 cy shall be eligible to participate in the youth sav- 2 ings match program if that local educational agency 3 receives funding under part A of title I of the Ele- 4 mentary and Secondary Education Act of 1965 (20 5 U.S.C. 6311 et seq.). 6 (2) YOUTH SAVINGS MATCH PROGRAM.—Each 7 participating eligible local educational agency shall 8 use grant funds to carry out a youth savings match 9 program, through which the eligible local educational 10 agency shall ensure that— 11 (A) every year each student in grades 9 12 through 12 that is served by that eligible local 13 educational agency is notified that— 14 (i) a youth savings match program ac- 15 count has been established for that stu- 16 dent, and the account will be funded in ac- 17 cordance with subparagraph (B); 18 (ii) in order to retain the initial de- 19 posit and matching contributions from 20 grant funding that are deposited in the 21 student’s youth savings match program ac- 22 count, the student and parents may not 23 withdraw from the student’s youth savings 24 match program account until the date that 25 VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 2022 IS is 1 year after the date of the student’s 1 high school graduation, or expected high 2 school graduation, unless the withdrawal is 3 approved in accordance with subparagraph 4 (G); and 5 (iii) upon withdrawal, funds in the 6 youth savings match program account may 7 be taxed; 8 (B) each student in grades 9 through 12 9 who is served by the eligible local educational 10 agency— 11 (i) receives $300 in an initial deposit 12 in the participating student’s youth savings 13 match program account; and 14 (ii) receives, on a monthly basis and 15 for a total of not more than 4 years, an 16 amount of funds equal to the amount of 17 funds that the participating student or 18 such student’s family contributes in that 19 month to the student’s youth savings 20 match program account, except that such 21 monthly match amount shall not exceed 22 $25 and the total amount of Federal 23 matching funds shall not exceed $300 each 24 year; 25 VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 2022 IS (C) funds contributed to a youth savings 1 match program account are deposited in an ac- 2 count at a depository institution (as defined in 3 section 19(b)(1)(A) of the Federal Reserve Act 4 (12 U.S.C. 461(b)(1)(A))) or invested in United 5 States Treasury bills, notes, or bonds; 6 (D) participating students and their fami- 7 lies are able to make deposits into the youth 8 savings match program account in person, on- 9 line, or on mobile devices, and are encouraged 10 to make automatic deposits into that account; 11 (E) the parents of participating students 12 are encouraged to participate in the program 13 and contribute to the student’s youth savings 14 match program account; 15 (F) any early withdrawal from a youth 16 savings match program account will require ap- 17 proval of the savings account trustee identified 18 in the State’s application under subsection (c) 19 and such a withdrawal will only be approved if 20 the funds are withdrawn for the purpose of pay- 21 ing for postsecondary education, a career and 22 technical education program of study, home- 23 ownership, business ownership, medical hard- 24 ship, or for another purpose that the eligible 25 VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 2022 IS local educational agency determines to be an 1 authorized purpose; 2 (G) if funds are withdrawn from a youth 3 savings match program account that are not 4 approved under subparagraph (F)— 5 (i) the student will lose any Federal 6 grant money that has been contributed to 7 the account (including the initial deposit, 8 matching contributions, and bonus con- 9 tributions, as described in subparagraph 10 (B)), and no further matching funds will 11 be contributed to the account; and 12 (ii) the student and parent may still 13 retain, and may withdraw funds that the 14 student or parent has contributed to the 15 student’s youth savings match program ac- 16 count; and 17 (H) participating students receive financial 18 literacy education, in a manner determined by 19 the State receiving the grant, which shall in- 20 clude information about how funds in the youth 21 savings match program account may be taxed 22 and explaining how taxation works for interest- 23 bearing or investment accounts. 24 VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 2022 IS (e) EVALUATION.—The Secretary shall carry out an 1 evaluation of the grant program under this section to de- 2 termine which aspects of the program have been effective 3 and which aspects of the program have not been effective. 4 (f) REPORT.—Not later than 4 years after the imple- 5 mentation of the grant program under this section, the 6 Secretary shall prepare and submit a report to Congress 7 containing the results of the evaluation under subsection 8 (e). 9 (g) AUTHORIZATION OF APPROPRIATIONS.—There 10 are authorized to be appropriated to carry out this Act 11 such sums as may be necessary for fiscal year 2024 and 12 each of the 3 succeeding fiscal years. 13 Æ VerDate Sep 11 2014 23:19 Jul 09, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S2022.IS S2022 pbinns on DSKJLVW7X2PROD with $$_JOB