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S. 918·113th Congress·Senate Bill

American Dream Accounts Act of 2013

IntroducedTrack

Latest action (9 May 2013): Introduced

What this bill does

The American Dream Accounts Act of 2013 would authorize the Secretary of Education to award competitive grants to states, school districts, charter schools, colleges, nonprofits, or partnerships of these to create "American Dream Accounts" for groups of low-income students. Each account would combine an online tool for tracking a student's academic progress and college readiness with a linked college savings account, funded with an initial deposit from the grant recipient (not from federal grant funds). Grants would last up to three years, with a possible two-year extension, and $3 million would be authorized for fiscal year 2013 and unspecified future amounts.

The program targets low-income public school students in grade 9 or below at the time of application, requiring groups of at least 30 students per grant. Participating students, families, teachers, and school staff could access parts of the online account under privacy protections, though savings-account details would generally be restricted. The bill also specifies that funds in these savings accounts would not count against a student's eligibility for federal financial aid or public assistance, and it requires grantees to track outcomes like graduation, FAFSA completion, and college enrollment, with the Secretary submitting annual evaluation reports to Congress.

The bill was introduced in the Senate on May 9, 2013, by Senator Christopher Coons with Senator Marco Rubio, and referred to the Committee on Health, Education, Labor, and Pensions. It received no further action or vote in the 113th Congress.

Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.

Official summary

American Dream Accounts Act of 2013 - Authorizes the Secretary of Education to award competitive grants to eligible entities so each can establish and administer American Dream Accounts for a group of at least 30 low-income public school students who, at the time the entities apply for a grant, are attending a grade no higher than ninth grade.

Lists as eligible entities: (1) state educational agencies, (2) local educational agencies, (3) charter schools, (4) charter management organizations, (5) institutions of higher education (IHEs), (6) nonprofit organizations, (7) entities experienced in educational savings or assisting low-income students attain higher education, and (8) consortia of two or more of these entities.

Describes an American Dream Account as a personal online account for low-income students that monitors their progress toward higher education and includes a college savings account that provides some tax-preferred accumulation.

Requires American Dream Accounts to provide students with opportunities, either online or in person, to: (1) attain financial literacy; (2) learn about preparing for enrollment in an IHE; and (3) identify their skills or interests, including career interests.

Requires grantees, subject to federal privacy laws and regulations, to allow vested stakeholders to have secure Internet access to an American Dream Account, but not the college savings account portion of that Account.

Prohibits grantees from using their grant to provide the initial deposit into the college savings account portion of a student's American Dream Account.

Prohibits the funds in those college savings accounts from being considered in making federal student financial aid determinations.

Common questions

What does S. 918 do?
The American Dream Accounts Act of 2013 would authorize the Secretary of Education to award competitive grants to states, school districts, charter schools, colleges, nonprofits, or partnerships of these to create "American Dream Accounts" for groups of low-income students. Each account would combine an online tool for tracking a student's academic progress and college readiness with a linked college savings account, funded with an initial deposit from the grant recipient (not from federal grant funds). Grants would last up to three years, with a possible two-year extension, and $3 million would be authorized for fiscal year 2013 and unspecified future amounts. The program targets low-income public school students in grade 9 or below at the time of application, requiring groups of at least 30 students per grant. Participating students, families, teachers, and school staff could access parts of the online account under privacy protections, though savings-account details would generally be restricted. The bill also specifies that funds in these savings accounts would not count against a student's eligibility for federal financial aid or public assistance, and it requires grantees to track outcomes like graduation, FAFSA completion, and college enrollment, with the Secretary submitting annual evaluation reports to Congress. The bill was introduced in the Senate on May 9, 2013, by Senator Christopher Coons with Senator Marco Rubio, and referred to the Committee on Health, Education, Labor, and Pensions. It received no further action or vote in the 113th Congress.
Has S. 918 become law?
Not yet. As of 9 May 2013, S. 918 is introduced.
Who sponsored S. 918?
S. 918 was sponsored by Sen. Christopher Coons [D-DE] (Democrat-DE), with 3 cosponsors.
What's the latest action on S. 918?
Introduced (9 May 2013).

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