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The Social Impact Partnerships to Pay for Results Act (SIPPRA), for the first time establishes a funding stream and structure to support and advance the implementation of Pay for Success contracting to impact Federal outcomes and related costs.
- Provides $100M in funding to support outcome payments associated with Pay for Success projects (social impact partnerships), feasibility studies, and project evaluations.
- Funding for projects, feasibility studies, and evaluations is available until 10 years after the date of enactment.
- Establishes the Commission on Social Impact Partnerships that consists of nine members, which include a Chair appointed by the President and eight members chosen by Congressional leaders and the Chairman and ranking members of the Senate Finance and House Ways and Means committees.
- Establishes a new Federal Interagency Council on Social Impact Partnerships that consists of 11 members and is chaired by the Director of the Office of Management Budget.
- Authority to review and approve proposals sits with the Secretary of the Treasury (Secretary), in consultation with the Federal Interagency Council on Social Impact Partnerships.
- No more than $10M of the total funding can be provided to support feasibility studies and federal funding can only cover up to 50 percent of the estimated total cost of the feasibility study.
- Feasibility studies developed for other purposes than applying for funding under this new authority can be submitted as part of a social impact partnership application.
- Of the funds available, no more than 15 percent ($15M) may be obligated to evaluate the implementation and outcomes of the projects.
- State and local governments are to submit applications to the Secretary and Council to develop and execute projects that produce one or more measurable, clearly defined outcomes that result in social benefit and Federal, State, or local savings.
- As part of an application, state and local governments need to provide a variety of details, including outcome goals, intervention, evaluation, target population, expected social benefits, projected costs, and projected savings.
Read the full article on SIPPRA at America Forward