[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9881 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9881
To direct the Commissioner of Social Security to establish American
Dream Accounts for every child born in the United States, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2024
Mr. Phillips (for himself, Mr. Vargas, and Mr. Thanedar) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Education and the Workforce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To direct the Commissioner of Social Security to establish American
Dream Accounts for every child born in the United States, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Dream Accounts Act of
2024''.
SEC. 2. ESTABLISHMENT OF AMERICAN DREAM ACCOUNTS.
(a) American Dream Account.--
(1) In general.--The Commissioner shall establish and
manage an American Dream Account (in this Act, referred to as
an ``Account'') for each covered individual.
(2) Initial amount.--Upon the establishment of an Account,
the Commissioner shall transfer $5,000 into such Account, to be
invested in accordance with section 3.
(3) Vesting.--A contribution to an Account vests when a
contribution is made, and the balance of an Account is
nonforfeitable except as described in section 4(b)(5).
(4) Distributions.--The Commissioner may only distribute
the balance of an Account upon receiving a request in
accordance with section 4.
(b) Peace Corps and AmeriCorps Bonus.--If a covered individual
serves, for at least 12 months, as a Peace Corps volunteer or volunteer
leader (as referred to in the Peace Corps Act (22 U.S.C. 2501 et seq.))
or in an approved national service position (as defined in section 101
of the National and Community Service Act of 1990 (42 U.S.C. 12511)),
prior to the date that such individual turns 26 years of age and prior
to requesting a disbursement under section 4, then the Commissioner
shall transfer $10,000 to the Account of such covered individual.
(c) Exempt From Benefit and Entitlement Determinations.--
Notwithstanding any other provision of law, the balance of an Account
shall not be taken into account in determining the need or eligibility
of a covered individual or the family of the covered individual under
any Federal, State, or local program financed in whole or in part with
Federal funds.
SEC. 3. INVESTMENT GUIDELINES.
The Commissioner shall invest the funds of each Account established
under this Act, and any interest or proceeds earned on such funds, in a
commonly recognized index comprised of common stock, the aggregate
market value of which is a reasonably complete representation of the
United States equity markets.
SEC. 4. DISBURSEMENT.
(a) In General.--The Commissioner shall, upon receiving a request
pursuant to subsection (b)(1)(A), make a disbursement in accordance
with the election made under subsection (b)(1)(B) to a covered
individual or an eligible beneficiary in the form of--
(1) a one-time disbursement;
(2) monthly checks over a 12-month period;
(3) a rollover contribution directly to a Roth IRA (as
defined in section 408A of the Internal Revenue Code of 1986);
or
(4) any combination of the disbursements described in
paragraphs (1) through (3) as the Secretary may prescribe by
regulation.
(b) Disbursement and Request Requirements.--
(1) In general.--
(A) Request information.--To receive a disbursement
from the Account of a covered individual, such
individual, or an eligible beneficiary, shall submit a
request at such time, in such manner, and containing
such information as the Commissioner may require.
(B) Disbursement form.--As part of the request made
under subparagraph (A), a covered individual or
eligible beneficiary shall elect the form in which the
disbursement should be made.
(2) Covered individual request eligibility.--To be eligible
to receive a disbursement under this Act, a covered individual
shall be older than 17 years of age and younger than 26 years
of age, and--
(A) earn a regular high school diploma (as defined
in section 8101(43)(A) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801(43)(A));
(B) earn a recognized equivalent of a diploma, such
as a general equivalency diploma or a home school
diploma; or
(C) obtain a waiver of disability from the Social
Security Administration.
(3) Requirements for certain disbursements.--A covered
individual, or an eligible beneficiary, shall--
(A) in order to receive a one-time disbursement,
establish a bank account prior to submitting a request
for a disbursement; or
(B) in order to have the Commissioner transfer any
amount in a rollover contribution directly to a Roth
IRA (as defined in section 408A of the Internal Revenue
Code of 1986), establish a Roth IRA (as so defined)
prior to submitting a request for a disbursement.
(4) Disbursement after death of a covered individual.--In
the case of a covered individual who dies prior to submitting a
request for a disbursement, an eligible beneficiary who is the
appropriate individual in accordance with the laws of the
domicile of the covered individual at the date of death of the
individual shall submit a request under paragraph (1) not later
than 1 year after the date of the death of such individual.
(5) Failure to submit a request.--If a request for
disbursement is not submitted to the Commissioner to receive a
disbursement prior to the date that the individual turns 26
years of age, or within the necessary time period described in
paragraph (4), then the Commissioner shall transfer the balance
of such Account to the general fund of the Treasury.
(c) Exempt From Benefit and Entitlement Determinations.--
Notwithstanding any other provision of law, an amount received as a
disbursement from an Account under this Act shall not be taken into
account, for the year in which the disbursement is received, in
determining the need or eligibility of an individual under any Federal,
State, or local program financed in whole or in part with Federal
funds.
(d) Attachment.--The right of any person to any payment from an
Account under this Act shall not be transferable or assignable, at law
or in equity, and none of the moneys paid or payable, or rights
existing under this Act, shall be subject to execution, levy,
attachment, garnishment, or other legal process, or to the operation of
any bankruptcy or insolvency law.
SEC. 5. OFFICE OF THE AMERICAN DREAM.
(a) Establishment.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Commissioner shall establish an
office, to be known as the ``Office of the American Dream''
(referred to in this section as the ``Office''),
(2) Director.--The Commissioner shall appoint a director of
the Office who has substantial experience, training, and
expertise in the management of financial investments and
pension benefit plans.
(b) Duties.--The Office shall--
(1) develop expertise in the management of financial
investments and pension benefit plans;
(2) establish policies to guide the Commissioner's
investment and management of the Accounts, pursuant to the
guidelines described in section 3;
(3) conduct periodic reviews of the Accounts, in
collaboration with the Office of Analytics, Review, and
Oversight, including the performance of investments made for
the Accounts;
(4) regularly provide information to covered individuals
about the status of the Accounts of such individuals; and
(5) carry out the duties of the Office solely in the
interest of covered individuals.
SEC. 6. TAX TREATMENT.
(a) In General.--An Account is exempt from taxation under subtitle
A of the Internal Revenue Code of 1986 and contributions to, and
distributions from, an Account shall not be includible in the gross
income of the beneficiary of such Account.
(b) Rollovers to Roth IRAs.--
(1) Section 408A(e)(1) of the Internal Revenue Code of 1986
is amended--
(A) by striking ``and'' at the end of subparagraph
(B)(ii), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) from an American Dream Account to the extent
provided in section 4 of the American Dream Accounts
Act of 2024.''; and
(B) in the last sentence--
(i) by inserting ``or American Dream
Account'' after ``qualified tuition program'',
and
(ii) by inserting ``or (D), respectively,''
after ``subparagraph (C)''.
SEC. 7. ESTABLISHMENT OF WEBSITE AND MOBILE APPLICATION.
Not later than 1 year after the date of enactment of this Act, the
Commissioner, in consultation with the Secretary of Education, shall
develop a publicly accessible website and mobile application for
covered individuals to access information about the Accounts of such
individuals.
SEC. 8. FINANCIAL MANAGEMENT AND PERSONAL FINANCE BEST PRACTICES AND
GRANTS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Education shall disseminate best
practices for teaching financial management described in subsection (b)
to public elementary schools and public secondary schools.
(b) Best Practices.--The best practices described in this
paragraph--
(1) shall include information relating to the tracking,
management, and usage of the Accounts; and
(2) may include--
(A) methods to create a budget, track expenses, and
save for short-term and long-term financial objectives;
(B) effective ways to save and invest money,
including by introducing students to different
financial securities;
(C) information on the fundamentals of credit,
including a description and effects of credit scores,
and the importance of responsible credit card usage;
(D) critical thinking skills to evaluate financial
products, make informed decisions, and avoid financial
scams;
(E) methods to ensure that each student has a clear
understanding of postsecondary education financing
options, including student loan borrowing, in
preparation for enrollment at an institution of higher
education; and
(F) entrepreneurship training and the fundamentals
of starting a small business.
(c) Grants.--
(1) Grant authorized.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall establish a grant
program to award grants, on a competitive basis, to State
educational agencies to promote new and existing strategies to
expand, develop, implement, evaluate, and disseminate
professional development programs in financial literacy for the
voluntary use of innovative approaches to teaching financial
literacy to elementary and secondary school students.
(2) Application.--To be eligible to receive a grant under
this section, a State educational agency shall submit to the
Secretary of Education an application at such time, in such
manner, and containing such information as the Secretary may
require.
(3) Subgrants.--A State educational agency receiving a
grant under this Act shall use any remaining funds to provide
grants to local educational agencies in the State for such
local education agencies to provide professional development to
teachers.
(4) Additional uses of funds.--Each State educational
agency may use not more than 10 percent of a grant received
under this Act--
(A) for the development of financial literacy and
personal finance curricula; or
(B) to conduct an evaluation of the impact of
financial literacy or personal finance education on
students' understanding of financial literacy concepts.
(d) ESEA Definitions.--In this section, the terms ``elementary
school'', ``local educational agency'', ``secondary school'', and
``State educational agency'' have the meanings given the terms in
section 8101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
SEC. 9. DEFINITIONS.
In this Act:
(a) Commissioner.--The term ``Commissioner'' means the
Commissioner of Social Security.
(b) Covered Individual.--The term ``covered individual'' means an
individual who, after the date of enactment of this Act--
(1) has been issued a social security account number; and
(2)(A) is born a citizen of the United States; or
(B) becomes a naturalized citizen of the United States
prior to turning 18 years of age.
(c) Eligible Beneficiary.--The term ``eligible beneficiary'' means
a person who is--
(1) entitled to receive funds on behalf of a covered
individual under the laws of the domicile of the covered
individual; and
(2) not the individual for whom the Account was
established.
SEC. 10. APPROPRIATIONS.
Out of any money in the Treasury of the United States not otherwise
appropriated, there are appropriated such sums as are necessary to
carry out this Act.
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