Social Impact Partnerships to Pay for Results Act

In February 2018, as part of an omnibus funding bill, Congress passed the Social Impact Partnerships to Pay for Results Act (SIPPRA), a landmark bipartisan law that will allocate $100M of funding from the Department of the Treasury to support Pay for Success initiatives through partnerships with State and local governments, over ten years. The purpose of the law is to improve the lives of Americans in need through outcomes-driven projects.

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The legislation targets several issue areas, including:

  • reducing homelessness among vulnerable populations,

  • improving child welfare,

  • reducing preventable diseases in low-income households, and

  • improving educational outcomes for students with special needs.

At least 50% of the funding must go to projects that directly impact children.

Additionally, $10M of the fund will be allocated to feasibility studies for the projects and no more than 15% of awarded funds can be used to fund evaluations of project implementation and outcomes.

Starting no later than February 2019, the Federal Government will issue a Request for Proposals (RFP) from State and local governments for potential social impact partnerships. To qualify, the proposals must include demonstrable and measurable outcomes, such as a reduction in recidivism rates or improved high school graduation rates, to be evaluated at the end of the project period. Furthermore, the duration of the projects may not exceed 10 years. The application requires a detailed description of the proposed project, including all participating organizations, the experience of the service provider in the issue area, the projected costs, budget, timeline, and outcomes as well as savings to local, State, and/or Federal governments.

At the end of the project period, an independent evaluator will assess whether or not the outcomes set at the beginning of the project were met by the service provider using experimental or otherwise evidence-based methodologies certified by the Federal Interagency Council. If they were successful, the Federal government will repay the State or local government responsible for the project.