WASHINGTON–The White House has asked Treasury Secretary Steve Mnuchin to identify and develop recommendations to overhaul the federal government’s financial literacy education efforts.
Once developed, the administration then wants those recommendations shared with the Office of Management and Budget (OMB) prior to Oct. 1.
The Trump Administration said it plans to consider “streamlining and consolidation” proposals as part of its fiscal 2020 budget.
The financial education program request was included as part of a report outlining proposed reforms that was released by the White House through OMB. It is the same report that received significant attention after also recommending consolidation of the Department of Labor and Department of Education, as well as other programs.
‘Limited Success’
The Trump Administration is seeking to consolidate the number of agencies involved in financial literacy and education, and to better coordinate those efforts with non-government entities.
According to the proposal, Treasury would maintain the lead as head of the Financial Literacy and Education Commission (FLEC), where Bureau of Consumer Financial Protection Acting Director Mick Mulvaney currently serves as vice chair.
The administration noted that the Council, created in 2003, now includes the heads of 22 federal agencies (including all the federal financial institution regulators) and the White House Domestic Policy Council. The White House said FLEC has had “limited success rationalizing federal efforts to promote access to quality financial literacy and education tools for all Americans.”
What’s Being Proposed
Some of the changes being proposed include:
- Using an evidence-based approach to articulate a national vision that outlines the appropriate role for the federal government and leverages the current work of non-profit organizations, the private sector, and state and local governments.
- Elimination and development of programs based on how much knowledge participants are acquiring from the financial literacy and education program, as well as how likely the program is to result in behavior that leads to greater financial capability.
- Consolidation of financial literacy programs into fewer agencies, with a mandate that they consult with relevant experts in other agencies.
According to the White House, the federal government spends $250 million annually on financial literacy and education and that another $170 million is spent on technical assistance and education for entrepreneurs by the Small Business Administration.