Legislation reauthorizing federal elementary and secondary education funding (H.R. 1, the Elementary and Secondary Education Reauthorization Act Conference Report) would establish the Excellence in Economic Education program proposed by U.S. Senator Daniel K. Akaka (D-Hawaii) to improve the education of American students in economic literacy. The Akaka provision includes key elements of the Excellence in Economic Education Act, legislation authored by Senator Akaka to increase students' economic knowledge, strengthen teachers' ability to teach economics, encourage research to increase economic understanding and instruction, help States incorporate economics in school curricula, and promote public and private partnerships to support economic education.
The Excellence in Economic Education provision is one of many reforms and priorities included in the conference report for H.R. 1. The bipartisan legislation increases federal support for elementary and secondary education, including Native Hawaiian education programs; calls for the establishment of state-based annual testing for students in grades three through eight; and targets resources to teacher training and retention, instruction for the neediest students and schools, and after-school and school safety programs. The main goal of the reauthorization is to narrow the educational achievement gap between poor and disadvantaged students and their better-off peers and between minority and non-minority students.
The Excellence in Economic Education amendment authorizes funding for the establishment of a competitive grant to be administered by the Department of Education (DOE). The Department would award a competitive grant to a national organization whose primary purpose is to foster and further economic and financial literacy for students in grades K through 12. The measure encourages economics-related research and development, dissemination of instructional materials, and replication of best practices and programs. It also increases private and public support for economic education partnerships between schools and local businesses.
"Increased education about basic economic principles such as money management, personal finance, interest rates, and inflation will assist all Americans in making informed decisions about their financial situations," Akaka said. "Beginning this education at a young age will better equip future generations to manage their financial affairs in our rapidly and constantly fluctuating economy. It is critical that today's students learn that there are consequences for every fiscal decision they make because the fiscal habits they learn now are likely to be the habits that remain as adults.
"Studies have shown that a lack of individual knowledge about fundamental economic principles can negatively impact our national economy. The need for economic literacy is no different from, or less important than, reading literacy, writing aptitude, or math and science comprehension."
The conference report also reauthorizes and enhances Native Hawaiian education and cultural programs. The Native Hawaiian Education Reauthorization Act and the Alaska Native and Native Hawaiian Education Through Cultural and Historical Organizations Act are included in H.R. 1. The Native Hawaiian Reauthorization Act (S. 86) was sponsored in the Senate by Senator Daniel K. Inouye (D-HI) and cosponsored by Senator Akaka.
"I welcome reauthorization of the Native Hawaiian Education Act," Akaka said. "The continuation of these programs is an important step forward for the preservation and propagation of Native Hawaiian language, culture, and heritage." The House of Representatives adopted the conference report to H.R. 1 by a 381-41 vote. Senate approval of the conference report is expected to come on Tuesday, and a signing ceremony at the White House with President Bush is planned for later this week.
