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Earlier this month, Congress passed bipartisan legislation that has significant implications for the Pay for Success (PFS) movement.
As part of the budget agreement, Congress has allocated nearly $100 million to provide competitively awarded outcomes-based financing to state and local governments and to conduct feasibility studies on their efficacy. This program — the Social Impact Partnerships to Pay for Results Act (SIPPRA) — will be run out of the US Department of the Treasury and will be launched within a year, with awards announced six months after that.
It indicates a commitment from lawmakers in Washington to funding and evaluating outcomes-based financing. It also formally embeds an outcomes-based approach in federal programs and incentivizes state and local governments to engage in the market. By including feasibility studies, it also has the potential to provide learnings that will fundamentally shape the future of the pay for success movement.
Read the full article on the Social Impact Partnerships to Pay for Results Act Giving Compass by Matt Bannick and Tracy Palandjian at Medium