# Plain Language Summary: Consumer Financial Education and Empowerment Act

This bill creates a new federal program that gives money to organizations to teach people about managing their finances. The Consumer Financial Protection Bureau (the federal agency that oversees consumer financial issues) will run a competition where nonprofits, government agencies, schools, and other qualified organizations can apply for grants to run financial education programs. The winners will receive funding to teach classes on topics like budgeting, credit, student loans, saving for a home, investing, taxes, and protecting personal financial information. The instruction has to include live, interactive teaching—either through webinars, classroom sessions, or one-on-one coaching—rather than just self-taught online courses.

The money for this program comes from civil penalties that the government collects when it catches financial companies breaking consumer protection laws. Starting in 2026, the program will have up to $30 million available in its first year, then $15 million per year after that (or 20 percent of leftover penalty money, whichever is less). Organizations can receive funding for up to five consecutive years based on a single application. The government will study what financial education people actually need and will ask an independent commission to review how well the program is working after two years.

This bill affects everyday people by expanding access to free or low-cost financial education in their communities. If you live in an area where a qualified organization wins funding, you might be able to take classes on managing debt, planning for homeownership, or other money skills. The bill also ensures that only reputable organizations—those that haven't violated consumer protection laws—can receive these grants, which helps protect the quality of the education being offered.

Consumer Financial Education and Empowerment Act

Scott, David

Consumer Financial Education and Empowerment Act This bill establishes within the Consumer Financial Protection Bureau a program to award allocations to state governments, local governments, and other entities for financial literacy programs. Programs eligible for awards may include education regarding credit, student loan debt, homeownership, investments, retirement, or tax planning.