II 

115TH CONGRESS 

1ST SESSION S. 963 

To encourage and support partnerships between the public and private sectors 

to improve our Nation’s social programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 27, 2017 

Mr. YOUNG (for himself, Mr. BENNET, Ms. COLLINS, and Mr. BOOKER) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To encourage and support partnerships between the public 

and private sectors to improve our Nation’s social programs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Social Impact Partner5 ships to Pay for Results Act’’. 

6 SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RE7 SULTS. 

8 Title XX of the Social Security Act (42 U.S.C. 1397 

9 et seq.) is amended— 


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1 (1) in the title heading, by striking ‘‘TO 

2 STATES’’ and inserting ‘‘AND PROGRAMS 

3 FOR’’; and 

4 (2) by adding at the end the following new sub5 title: 

6 ‘‘Subtitle C—Social Impact 

7 Partnerships 

8 ‘‘SEC. 2051. PURPOSES. 

9 ‘‘The purposes of this subtitle are the following: 

10 ‘‘(1) To improve the lives of families and indi11 viduals in need in the United States by funding so12 cial programs that achieve real results. 

13 ‘‘(2) To redirect funds away from programs 

14 that, based on objective data, are ineffective, and 

15 into programs that achieve demonstrable, measur16 able results. 

17 ‘‘(3) To ensure Federal funds are used effec18 tively on social services to produce positive outcomes 

19 for both service recipients and taxpayers. 

20 ‘‘(4) To establish the use of social impact part21 nerships to address some of our Nation’s most 

22 pressing problems. 

23 ‘‘(5) To facilitate the creation of public-private 

24 partnerships that bundle philanthropic or other pri25 vate resources with existing public spending to scale 


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1 up effective social interventions already being imple2 mented by private organizations, nonprofits, chari3 table organizations, and State and local governments 

4 across the country. 

5 ‘‘(6) To bring pay-for-performance to the social 

6 sector, allowing the United States to improve the im7 pact and effectiveness of vital social services pro8 grams while redirecting inefficient or duplicative 

9 spending. 

10 ‘‘(7) To incorporate outcomes measurement and 

11 randomized controlled trials or other rigorous meth12 odologies for assessing program impact. 

13 ‘‘SEC. 2052. SOCIAL IMPACT PARTNERSHIP APPLICATION. 

14 ‘‘(a) NOTICE.—Not later than 1 year after the date 

15 of the enactment of this subtitle, the Secretary, in con16 sultation with the Federal Interagency Council on Social 

17 Impact Partnerships, shall publish in the Federal Register 

18 a request for proposals from States or local governments 

19 for social impact partnership projects in accordance with 

20 this section. 

21 ‘‘(b) REQUIRED OUTCOMES FOR SOCIAL IMPACT

22 PARTNERSHIP PROJECT.—To qualify as a social impact 

23 partnership project under this subtitle, a project must 

24 produce one or more measurable, clearly defined outcomes 


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1 that result in social benefit and Federal savings through 

2 any of the following: 

3 ‘‘(1) Increasing work and earnings by individ4 uals in the United States who are unemployed for 

5 more than 6 consecutive months. 

6 ‘‘(2) Increasing employment and earnings of in7 dividuals who have attained 16 years of age but not 

8 25 years of age. 

9 ‘‘(3) Increasing employment among individuals 

10 receiving Federal disability benefits. 

11 ‘‘(4) Reducing the dependence of low-income 

12 families on Federal means-tested benefits. 

13 ‘‘(5) Improving rates of high school graduation. 

14 ‘‘(6) Reducing teen and unplanned pregnancies. 

15 ‘‘(7) Improving birth outcomes and early child16 hood health and development among low-income 

17 families and individuals. 

18 ‘‘(8) Reducing rates of asthma, diabetes, or 

19 other preventable diseases among low-income fami20 lies and individuals to reduce the utilization of emer21 gency and other high-cost care. 

22 ‘‘(9) Increasing the proportion of children living 

23 in two-parent families. 

24 ‘‘(10) Reducing incidences and adverse con25 sequences of child abuse and neglect. 


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1 ‘‘(11) Reducing the number of youth in foster 

2 care by increasing adoptions, permanent guardian3 ship arrangements, reunifications, or placements 

4 with a fit and willing relative, or by avoiding placing 

5 children in foster care by ensuring they can be cared 

6 for safely in their own homes. 

7 ‘‘(12) Reducing the number of children and 

8 youth in foster care residing in group homes, child 

9 care institutions, agency-operated foster homes, or 

10 other non-family foster homes, unless it is deter11 mined that it is in the interest of the child’s long12 term health, safety, or psychological well-being to 

13 not be placed in a family foster home. 

14 ‘‘(13) Reducing the number of children return15 ing to foster care. 

16 ‘‘(14) Reducing recidivism among juvenile of17 fenders, individuals released from prison, or other 

18 high-risk populations. 

19 ‘‘(15) Reducing the rate of homelessness among 

20 our most vulnerable populations. 

21 ‘‘(16) Improving the health and well-being of 

22 those with mental, emotional, and behavioral health 

23 needs. 

24 ‘‘(17) Improving the educational outcomes of 

25 special-needs or low-income children. 


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1 ‘‘(18) Improving the employment and well-being 

2 of returning United States military members. 

3 ‘‘(19) Increasing the financial stability of low4 income families. 

5 ‘‘(20) Increasing the independence and employ6 ability of individuals who are physically or mentally 

7 disabled. 

8 ‘‘(21) Other measurable outcomes defined by 

9 the State or local government that result in positive 

10 social outcomes and Federal savings. 

11 ‘‘(c) APPLICATION REQUIRED.—The notice described 

12 in subsection (a) shall require a State or local government 

13 to submit an application for the social impact partnership 

14 project that addresses the following: 

15 ‘‘(1) The outcome goals of the project. 

16 ‘‘(2) A description of each intervention in the 

17 project and anticipated outcomes of the intervention. 

18 ‘‘(3) Rigorous evidence demonstrating that the 

19 intervention can be expected to produce the desired 

20 outcomes. 

21 ‘‘(4) The target population that will be served 

22 by the project. 

23 ‘‘(5) The expected social benefits to participants 

24 who receive the intervention and others who may be 

25 impacted. 


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1 ‘‘(6) Projected Federal, State, and local govern2 ment costs and other costs to conduct the project. 

3 ‘‘(7) Projected Federal, State, and local govern4 ment savings and other savings, including an esti5 mate of the savings to the Federal Government, on 

6 a program-by-program basis and in the aggregate, if 

7 the project is implemented and the outcomes are 

8 achieved as a result of the intervention. 

9 ‘‘(8) If savings resulting from the successful 

10 completion of the project are estimated to accrue to 

11 the State or local government, the likelihood of the 

12 State or local government to realize those savings. 

13 ‘‘(9) A plan for delivering the intervention 

14 through a social impact partnership model. 

15 ‘‘(10) A description of the expertise of each 

16 service provider that will administer the intervention, 

17 including a summary of the experience of the service 

18 provider in delivering the proposed intervention or a 

19 similar intervention, or demonstrating that the serv20 ice provider has the expertise necessary to deliver 

21 the proposed intervention. 

22 ‘‘(11) An explanation of the experience of the 

23 State or local government, the intermediary, or the 

24 service provider in raising private and philanthropic 

25 capital to fund social service investments. 


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1 ‘‘(12) The detailed roles and responsibilities of 

2 each entity involved in the project, including any 

3 State or local government entity, intermediary, serv4 ice provider, independent evaluator, investor, or 

5 other stakeholder. 

6 ‘‘(13) A summary of the experience of the serv7 ice provider in delivering the proposed intervention 

8 or a similar intervention, or a summary dem9 onstrating the service provider has the expertise nec10 essary to deliver the proposed intervention. 

11 ‘‘(14) A summary of the unmet need in the 

12 area where the intervention will be delivered or 

13 among the target population who will receive the 

14 intervention. 

15 ‘‘(15) The proposed payment terms, the meth16 odology used to calculate outcome payments, the 

17 payment schedule, and performance thresholds. 

18 ‘‘(16) The project budget. 

19 ‘‘(17) The project timeline. 

20 ‘‘(18) The criteria used to determine the eligi21 bility of an individual for the project, including how 

22 selected populations will be identified, how they will 

23 be referred to the project, and how they will be en24 rolled in the project. 

25 ‘‘(19) The evaluation design. 


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1 ‘‘(20) The metrics that will be used in the eval2 uation to determine whether the outcomes have been 

3 achieved as a result of the intervention and how the 

4 metrics will be measured. 

5 ‘‘(21) An explanation of how the metrics used 

6 in the evaluation to determine whether the outcomes 

7 achieved as a result of the intervention are inde8 pendent, objective indicators of impact and are not 

9 subject to manipulation by the service provider, 

10 intermediary, or investor. 

11 ‘‘(22) A summary explaining the independence 

12 of the evaluator from the other entities involved in 

13 the project and the evaluator’s experience in con14 ducting rigorous evaluations of program effective15 ness including, where available, well-implemented 

16 randomized controlled trials on the intervention or 

17 similar interventions. 

18 ‘‘(23) Any potential payment disputes related to 

19 the outcomes of the evaluation. 

20 ‘‘(24) The capacity of the service provider to 

21 deliver the intervention to the number of partici22 pants the State or local government proposes to 

23 serve in the project. 

24 ‘‘(25) A description of whether and how the 

25 State or local government and service providers plan 


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1 to sustain the intervention, if it is timely and appro2 priate to do so, to ensure that successful interven3 tions continue to operate after the period of the so4 cial impact partnership. 

5 ‘‘(d) PROJECT INTERMEDIARY INFORMATION RE6 QUIRED.—The application described in subsection (c) shall 

7 also contain the following information about any inter8 mediary for the social impact partnership project (whether 

9 an intermediary is a service provider or other entity): 

10 ‘‘(1) Experience and capacity for providing or 

11 facilitating the provision of the type of intervention 

12 proposed. 

13 ‘‘(2) The mission and goals. 

14 ‘‘(3) Information on whether the intermediary 

15 is already working with service providers that pro16 vide this intervention or an explanation of the capac17 ity of the intermediary to begin working with service 

18 providers to provide the intervention. 

19 ‘‘(4) Experience working in a collaborative envi20 ronment across government and nongovernmental 

21 entities. 

22 ‘‘(5) Previous experience collaborating with 

23 public or private entities to implement evidence24 based programs. 


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1 ‘‘(6) Ability to raise or provide funding to cover 

2 operating costs (if applicable to the project). 

3 ‘‘(7) Capacity and infrastructure to track out4 comes and measure results, including— 

5 ‘‘(A) capacity to track and analyze pro6 gram performance and assess program impact; 

7 and 

8 ‘‘(B) experience with performance-based 

9 awards or performance-based contracting and 

10 achieving project milestones and targets. 

11 ‘‘(8) Role in delivering the intervention. 

12 ‘‘(9) How the intermediary would monitor pro13 gram success, including a description of the interim 

14 benchmarks and outcome measures. 

15 ‘‘(e) FEASIBILITY STUDIES FUNDED THROUGH

16 OTHER SOURCES.—The notice described in subsection (a) 

17 shall permit a State or local government to submit an ap18 plication for social impact partnership funding that con19 tains information from a feasibility study developed for 

20 purposes other than applying for funding under this sub21 title. 

22 ‘‘SEC. 2053. AWARDING SOCIAL IMPACT PARTNERSHIP 

23 AGREEMENTS. 

24 ‘‘(a) TIMELINE IN AWARDING AGREEMENT.—Not 

25 later than 6 months after receiving an application in acVerDate Sep 11 2014 00:38 Apr 29, 2017 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S963.IS S963

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1 cordance with section 2052, the Secretary, in consultation 

2 with the Federal Interagency Council on Social Impact 

3 Partnerships, shall determine whether to enter into an 

4 agreement for a social impact partnership project with a 

5 State or local government. 

6 ‘‘(b) CONSIDERATIONS IN AWARDING AGREEMENT.— 

7 In determining whether to enter into an agreement for a 

8 social impact partnership project (the application for 

9 which was submitted under section 2052) the Secretary, 

10 in consultation with the Federal Interagency Council on 

11 Social Impact Partnerships (established by section 2056) 

12 and the head of any Federal agency administering a simi13 lar intervention or serving a population similar to that 

14 served by the project, shall consider each of the following: 

15 ‘‘(1) The recommendations made by the Com16 mission on Social Impact Partnerships. 

17 ‘‘(2) The value to the Federal Government of 

18 the outcomes expected to be achieved if the outcomes 

19 specified in the agreement are achieved as a result 

20 of the intervention. 

21 ‘‘(3) The likelihood, based on evidence provided 

22 in the application and other evidence, that the State 

23 or local government in collaboration with the inter24 mediary and the service providers will achieve the 

25 outcomes. 


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1 ‘‘(4) The savings to the Federal Government if 

2 the outcomes specified in the agreement are achieved 

3 as a result of the intervention. 

4 ‘‘(5) The savings to the State and local govern5 ments if the outcomes specified in the agreement are 

6 achieved as a result of the intervention. 

7 ‘‘(6) The expected quality of the evaluation that 

8 would be conducted with respect to the agreement. 

9 ‘‘(7) The capacity and commitment of the State 

10 or local government to sustain the intervention, if 

11 appropriate and timely and if the intervention is suc12 cessful, beyond the period of the social impact part13 nership. 

14 ‘‘(c) AGREEMENT AUTHORITY.— 

15 ‘‘(1) AGREEMENT REQUIREMENTS.—The Sec16 retary, in consultation with the Federal Interagency 

17 Council on Social Impact Partnerships and the head 

18 of any Federal agency administering a similar inter19 vention or serving a population similar to that 

20 served by the project, may enter into an agreement 

21 for a social impact partnership project with a State 

22 or local government if the Secretary, in consultation 

23 with the Federal Interagency Council on Social Im24 pact Partnerships, determines that each of the fol25 lowing requirements are met: 


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1 ‘‘(A) The State or local government agrees 

2 to achieve one or more outcomes as a result of 

3 the intervention, as specified in the agreement 

4 and validated by independent evaluation, in 

5 order to receive payment. 

6 ‘‘(B) The Federal payment to the State or 

7 local government for each specified outcome 

8 achieved as a result of the intervention is less 

9 than or equal to the value of the outcome to the 

10 Federal Government over a period not to exceed 

11 10 years, as determined by the Secretary, in 

12 consultation with the State or local government. 

13 ‘‘(C) The duration of the project does not 

14 exceed 10 years. 

15 ‘‘(D) The State or local government has 

16 demonstrated, through the application sub17 mitted under section 2052, that, based on prior 

18 rigorous experimental evaluations or rigorous 

19 quasi-experimental studies, the intervention can 

20 be expected to achieve each outcome specified in 

21 the agreement. 

22 ‘‘(E) The State, local government, inter23 mediary, or service provider has experience rais24 ing private or philanthropic capital to fund soVerDate Sep 11 2014 00:38 Apr 29, 2017 Jkt 069200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S963.IS S963

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1 cial service investments (if applicable to the 

2 project). 

3 ‘‘(F) The State or local government has 

4 shown that each service provider has experience 

5 delivering the intervention, a similar interven6 tion, or has otherwise demonstrated the exper7 tise necessary to deliver the intervention. 

8 ‘‘(2) PAYMENT.—The Secretary shall pay the 

9 State or local government only if the independent 

10 evaluator described in section 2055 determines that 

11 the social impact partnership project has met the re12 quirements specified in the agreement and achieved 

13 an outcome as a result of the intervention, as speci14 fied in the agreement and validated by independent 

15 evaluation. 

16 ‘‘(3) LIMITATION.—The Secretary may not 

17 enter into a contract for a social impact partnership 

18 project under paragraph (1) after the date that is 10 

19 years after the date of enactment of the Social Im20 pact Partnerships to Pay for Results Act. 

21 ‘‘(d) NOTICE OF AGREEMENT AWARD.—Not later 

22 than 30 days after entering into an agreement under this 

23 section, the Secretary shall publish a notice in the Federal 

24 Register that includes, with regard to the agreement, the 

25 following: 


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1 ‘‘(1) The outcome goals of the social impact 

2 partnership project. 

3 ‘‘(2) A description of each intervention in the 

4 project. 

5 ‘‘(3) The target population that will be served 

6 by the project. 

7 ‘‘(4) The expected social benefits to participants 

8 who receive the intervention and others who may be 

9 impacted. 

10 ‘‘(5) The detailed roles, responsibilities, and 

11 purposes of each Federal, State, or local government 

12 entity, intermediary, service provider, independent 

13 evaluator, investor, or other stakeholder. 

14 ‘‘(6) The payment terms, the methodology used 

15 to calculate outcome payments, the payment sched16 ule, and performance thresholds. 

17 ‘‘(7) The project budget. 

18 ‘‘(8) The project timeline. 

19 ‘‘(9) The project eligibility criteria. 

20 ‘‘(10) The evaluation design. 

21 ‘‘(11) The metrics that will be used in the eval22 uation to determine whether the outcomes have been 

23 achieved as a result of each intervention and how 

24 these metrics will be measured. 


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1 ‘‘(12) The estimate of the savings to the Fed2 eral, State, and local government, on a program-by3 program basis and in the aggregate, if the agree4 ment is entered into and implemented and the out5 comes are achieved as a result of each intervention. 

6 ‘‘(e) AUTHORITY TO TRANSFER ADMINISTRATION OF

7 AGREEMENT.—The Secretary may transfer to the head of 

8 another Federal agency the authority to administer (in9 cluding making payments under) an agreement entered 

10 into under this section, and any funds necessary to do so. 

11 ‘‘(f) REQUIREMENT ON FUNDING USED TO BENEFIT

12 CHILDREN.—Not less than 50 percent of all Federal pay13 ments made to carry out agreements under this section 

14 shall be used for initiatives that directly benefit children. 

15 ‘‘SEC. 2054. FEASIBILITY STUDY FUNDING. 

16 ‘‘(a) REQUESTS FOR FUNDING FOR FEASIBILITY

17 STUDIES.—The Secretary shall reserve a portion of the 

18 amounts appropriated to carry out this subtitle to assist 

19 States or local governments in developing feasibility stud20 ies to apply for social impact partnership funding under 

21 section 2052. To be eligible to receive funding to assist 

22 with completing a feasibility study, a State or local govern23 ment shall submit an application for feasibility study fund24 ing addressing the following: 


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1 ‘‘(1) A description of the outcome goals of the 

2 social impact partnership project. 

3 ‘‘(2) A description of the intervention, including 

4 anticipated program design, target population, an 

5 estimate regarding the number of individuals to be 

6 served, and setting for the intervention. 

7 ‘‘(3) Evidence to support the likelihood that the 

8 intervention will produce the desired outcomes. 

9 ‘‘(4) A description of the potential metrics to be 

10 used. 

11 ‘‘(5) The expected social benefits to participants 

12 who receive the intervention and others who may be 

13 impacted. 

14 ‘‘(6) Estimated costs to conduct the project. 

15 ‘‘(7) Estimates of Federal, State, and local gov16 ernment savings and other savings if the project is 

17 implemented and the outcomes are achieved as a re18 sult of each intervention. 

19 ‘‘(8) An estimated timeline for implementation 

20 and completion of the project, which shall not exceed 

21 10 years. 

22 ‘‘(9) With respect to a project for which the 

23 State or local government selects an intermediary to 

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1 cessfully execute the project and the ability of the 

2 intermediary to foster the partnerships. 

3 ‘‘(10) The expected resources needed to com4 plete the feasibility study for the State or local gov5 ernment to apply for social impact partnership fund6 ing under section 2052. 

7 ‘‘(b) FEDERAL SELECTION OF APPLICATIONS FOR

8 FEASIBILITY STUDY.—Not later than 6 months after re9 ceiving an application for feasibility study funding under 

10 subsection (a), the Secretary, in consultation with the 

11 Federal Interagency Council on Social Impact Partner12 ships and the head of any Federal agency administering 

13 a similar intervention or serving a population similar to 

14 that served by the project, shall select State or local gov15 ernment feasibility study proposals for funding based on 

16 the following: 

17 ‘‘(1) The recommendations made by the Com18 mission on Social Impact Partnerships. 

19 ‘‘(2) The likelihood that the proposal will 

20 achieve the desired outcomes. 

21 ‘‘(3) The value of the outcomes expected to be 

22 achieved as a result of each intervention. 

23 ‘‘(4) The potential savings to the Federal Gov24 ernment if the social impact partnership project is 

25 successful. 


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1 ‘‘(5) The potential savings to the State and 

2 local governments if the project is successful. 

3 ‘‘(c) PUBLIC DISCLOSURE.—Not later than 30 days 

4 after selecting a State or local government for feasibility 

5 study funding under this section, the Secretary shall cause 

6 to be published on the website of the Federal Interagency 

7 Council on Social Impact Partnerships information ex8 plaining why a State or local government was granted fea9 sibility study funding. 

10 ‘‘(d) FUNDING RESTRICTION.— 

11 ‘‘(1) FEASIBILITY STUDY RESTRICTION.—The 

12 Secretary may not provide feasibility study funding 

13 under this section for more than 50 percent of the 

14 estimated total cost of the feasibility study reported 

15 in the State or local government application sub16 mitted under subsection (a). 

17 ‘‘(2) AGGREGATE RESTRICTION.—Of the total 

18 amounts appropriated to carry out this subtitle, the 

19 Secretary may not use more than $10,000,000 to 

20 provide feasibility study funding to States or local 

21 governments under this section. 

22 ‘‘(3) NO GUARANTEE OF FUNDING.—The Sec23 retary shall have the option to award no funding 

24 under this section. 


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1 ‘‘(e) SUBMISSION OF FEASIBILITY STUDY RE2 QUIRED.—Not later than 9 months after the receipt of 

3 feasibility study funding under this section, a State or 

4 local government receiving the funding shall complete the 

5 feasibility study and submit the study to the Federal 

6 Interagency Council on Social Impact Partnerships. 

7 ‘‘(f) DELEGATION OF AUTHORITY.—The Secretary 

8 may transfer to the head of another Federal agency the 

9 authorities provided in this section and any funds nec10 essary to exercise the authorities. 

11 ‘‘SEC. 2055. EVALUATIONS. 

12 ‘‘(a) AUTHORITY TO ENTER INTO AGREEMENTS.— 

13 For each State or local government awarded a social im14 pact partnership project approved by the Secretary under 

15 this subtitle, the head of the relevant agency, as rec16 ommended by the Federal Interagency Council on Social 

17 Impact Partnerships and determined by the Secretary, 

18 shall enter into an agreement with the State or local gov19 ernment to pay for all or part of the independent evalua20 tion to determine whether the State or local government 

21 project has achieved a specific outcome as a result of the 

22 intervention in order for the State or local government to 

23 receive outcome payments under this subtitle. 

24 ‘‘(b) EVALUATOR QUALIFICATIONS.—The head of the 

25 relevant agency may not enter into an agreement with a 


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1 State or local government unless the head determines that 

2 the evaluator is independent of the other parties to the 

3 agreement and has demonstrated substantial experience in 

4 conducting rigorous evaluations of program effectiveness 

5 including, where available and appropriate, well-imple6 mented randomized controlled trials on the intervention or 

7 similar interventions. 

8 ‘‘(c) METHODOLOGIES TO BE USED.—The evalua9 tion used to determine whether a State or local govern10 ment will receive outcome payments under this subtitle 

11 shall use experimental designs using random assignment 

12 or other reliable, evidence-based research methodologies, 

13 as certified by the Federal Interagency Council on Social 

14 Impact Partnerships, that allow for the strongest possible 

15 causal inferences when random assignment is not feasible. 

16 ‘‘(d) PROGRESS REPORT.— 

17 ‘‘(1) SUBMISSION OF REPORT.—The inde18 pendent evaluator shall— 

19 ‘‘(A) not later than 2 years after a project 

20 has been approved by the Secretary and bian21 nually thereafter until the project is concluded, 

22 submit to the head of the relevant agency and 

23 the Federal Interagency Council on Social Im24 pact Partnerships a written report summarizing 


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1 the progress that has been made in achieving 

2 each outcome specified in the agreement; and 

3 ‘‘(B) before the scheduled time of the first 

4 outcome payment and before the scheduled time 

5 of each subsequent payment, submit to the 

6 head of the relevant agency and the Federal 

7 Interagency Council on Social Impact Partner8 ships a written report that includes the results 

9 of the evaluation conducted to determine wheth10 er an outcome payment should be made along 

11 with information on the unique factors that 

12 contributed to achieving or failing to achieve 

13 the outcome, the challenges faced in attempting 

14 to achieve the outcome, and information on the 

15 improved future delivery of this or similar inter16 ventions. 

17 ‘‘(2) SUBMISSION TO THE SECRETARY AND

18 CONGRESS.—Not later than 30 days after receipt of 

19 the written report pursuant to paragraph (1)(B), the 

20 Federal Interagency Council on Social Impact Part21 nerships shall submit the report to the Secretary 

22 and each committee of jurisdiction in the House of 

23 Representatives and the Senate. 

24 ‘‘(e) FINAL REPORT.— 


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1 ‘‘(1) SUBMISSION OF REPORT.—Within 6 

2 months after the social impact partnership project is 

3 completed, the independent evaluator shall— 

4 ‘‘(A) evaluate the effects of the activities 

5 undertaken pursuant to the agreement with re6 gard to each outcome specified in the agree7 ment; and 

8 ‘‘(B) submit to the head of the relevant 

9 agency and the Federal Interagency Council on 

10 Social Impact Partnerships a written report 

11 that includes the results of the evaluation and 

12 the conclusion of the evaluator as to whether 

13 the State or local government has fulfilled each 

14 obligation of the agreement, along with infor15 mation on the unique factors that contributed 

16 to the success or failure of the project, the chal17 lenges faced in attempting to achieve the out18 come, and information on the improved future 

19 delivery of this or similar interventions. 

20 ‘‘(2) SUBMISSION TO THE SECRETARY AND

21 CONGRESS.—Not later than 30 days after receipt of 

22 the written report pursuant to paragraph (1)(B), the 

23 Federal Interagency Council on Social Impact Part24 nerships shall submit the report to the Secretary 


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1 and each committee of jurisdiction in the House of 

2 Representatives and the Senate. 

3 ‘‘(f) LIMITATION ON COST OF EVALUATIONS.—Of 

4 the amounts appropriated to carry out this subtitle, the 

5 Secretary may not obligate more than 15 percent to evalu6 ate the implementation and outcomes of the projects. 

7 ‘‘(g) DELEGATION OF AUTHORITY.—The Secretary 

8 may transfer to the head of another Federal agency the 

9 authorities provided in this section and any funds nec10 essary to exercise the authorities. 

11 ‘‘SEC. 2056. FEDERAL INTERAGENCY COUNCIL ON SOCIAL 

12 IMPACT PARTNERSHIPS. 

13 ‘‘(a) ESTABLISHMENT.—There is established the 

14 Federal Interagency Council on Social Impact Partner15 ships (in this section referred to as the ‘Council’) to— 

16 ‘‘(1) coordinate with the Secretary on the ef17 forts of social impact partnership projects funded 

18 under this subtitle; 

19 ‘‘(2) advise and assist the Secretary in the de20 velopment and implementation of the projects; 

21 ‘‘(3) advise the Secretary on specific pro22 grammatic and policy matter related to the projects; 

23 ‘‘(4) provide subject-matter expertise to the 

24 Secretary with regard to the projects; 


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1 ‘‘(5) certify to the Secretary that each State or 

2 local government that has entered into an agreement 

3 with the Secretary for a social impact partnership 

4 project under this subtitle and each evaluator se5 lected by the head of the relevant agency under sec6 tion 2055 has access to Federal administrative data 

7 to assist the State or local government and the eval8 uator in evaluating the performance and outcomes of 

9 the project; 

10 ‘‘(6) address issues that will influence the fu11 ture of social impact partnership projects in the 

12 United States; 

13 ‘‘(7) provide guidance to the executive branch 

14 on the future of social impact partnership projects 

15 in the United States; 

16 ‘‘(8) prior to approval by the Secretary, certify 

17 that each State and local government application for 

18 a social impact partnership contains rigorous, inde19 pendent data and reliable, evidence-based research 

20 methodologies to support the conclusion that the 

21 project will yield savings to the State or local gov22 ernment or the Federal Government if the project 

23 outcomes are achieved; 

24 ‘‘(9) certify to the Secretary, in the case of each 

25 approved social impact partnership that is expected 


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1 to yield savings to the Federal Government, that the 

2 project will yield a projected savings to the Federal 

3 Government if the project outcomes are achieved, 

4 and coordinate with the relevant Federal agency to 

5 produce an after-action accounting once the project 

6 is complete to determine the actual Federal savings 

7 realized, and the extent to which actual savings 

8 aligned with projected savings; and 

9 ‘‘(10) provide periodic reports to the Secretary 

10 and make available reports periodically to Congress 

11 and the public on the implementation of this sub12 title. 

13 ‘‘(b) COMPOSITION OF COUNCIL.—The Council shall 

14 have 11 members, as follows: 

15 ‘‘(1) CHAIR.—The Chair of the Council shall be 

16 the Director of the Office of Management and Budg17 et. 

18 ‘‘(2) OTHER MEMBERS.—The head of each of 

19 the following entities shall designate one officer or 

20 employee of the entity to be a Council member: 

21 ‘‘(A) The Department of Labor. 

22 ‘‘(B) The Department of Health and 

23 Human Services. 

24 ‘‘(C) The Social Security Administration. 

25 ‘‘(D) The Department of Agriculture. 


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1 ‘‘(E) The Department of Justice. 

2 ‘‘(F) The Department of Housing and 

3 Urban Development. 

4 ‘‘(G) The Department of Education. 

5 ‘‘(H) The Department of Veterans Affairs. 

6 ‘‘(I) The Department of the Treasury. 

7 ‘‘(J) The Corporation for National and 

8 Community Service. 

9 ‘‘SEC. 2057. COMMISSION ON SOCIAL IMPACT PARTNER10 SHIPS. 

11 ‘‘(a) ESTABLISHMENT.—There is established the 

12 Commission on Social Impact Partnerships (in this section 

13 referred to as the ‘Commission’). 

14 ‘‘(b) DUTIES.—The duties of the Commission shall 

15 be to— 

16 ‘‘(1) assist the Secretary and the Federal Inter17 agency Council on Social Impact Partnerships in re18 viewing applications for funding under this subtitle; 

19 ‘‘(2) make recommendations to the Secretary 

20 and the Federal Interagency Council on Social Im21 pact Partnerships regarding the funding of social 

22 impact partnership agreements and feasibility stud23 ies; and 


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1 ‘‘(3) provide other assistance and information 

2 as requested by the Secretary or the Federal Inter3 agency Council on Social Impact Partnerships. 

4 ‘‘(c) COMPOSITION.—The Commission shall be com5 posed of nine members, of whom— 

6 ‘‘(1) one shall be appointed by the President, 

7 who will serve as the Chair of the Commission; 

8 ‘‘(2) one shall be appointed by the Majority 

9 Leader of the Senate; 

10 ‘‘(3) one shall be appointed by the Minority 

11 Leader of the Senate; 

12 ‘‘(4) one shall be appointed by the Speaker of 

13 the House of Representatives; 

14 ‘‘(5) one shall be appointed by the Minority 

15 Leader of the House of Representatives; 

16 ‘‘(6) one shall be appointed by the Chairman of 

17 the Committee on Finance of the Senate; 

18 ‘‘(7) one shall be appointed by the ranking 

19 member of the Committee on Finance of the Senate; 

20 ‘‘(8) one member shall be appointed by the 

21 Chairman of the Committee on Ways and Means of 

22 the House of Representatives; and 

23 ‘‘(9) one shall be appointed by the ranking 

24 member of the Committee on Ways and Means of 

25 the House of Representatives. 


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1 ‘‘(d) QUALIFICATIONS OF COMMISSION MEMBERS.— 

2 The members of the Commission shall— 

3 ‘‘(1) be experienced in finance, economics, pay 

4 for performance, or program evaluation; 

5 ‘‘(2) have relevant professional or personal ex6 perience in a field related to one or more of the out7 comes listed in section 2052(b); or 

8 ‘‘(3) be qualified to review applications for so9 cial impact partnership projects to determine wheth10 er the proposed metrics and evaluation methodolo11 gies are appropriately rigorous and reliant upon 

12 independent data and evidence-based research. 

13 ‘‘(e) TIMING OF APPOINTMENTS.—The appointments 

14 of the members of the Commission shall be made not later 

15 than 120 days after the date of the enactment of this sub16 title, or, in the event of a vacancy, not later than 90 days 

17 after the date the vacancy arises. If a member of Congress 

18 fails to appoint a member by that date, the President may 

19 select a member of the President’s choice on behalf of the 

20 member of Congress. Notwithstanding the preceding sen21 tence, if not all appointments have been made to the Com22 mission as of that date, the Commission may operate with 

23 no fewer than 5 members until all appointments have been 

24 made. 

25 ‘‘(f) TERM OF APPOINTMENTS.— 


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1 ‘‘(1) IN GENERAL.—The members appointed 

2 under subsection (c) shall serve as follows: 

3 ‘‘(A) Three members shall serve for 2 

4 years. 

5 ‘‘(B) Three members shall serve for 3 

6 years. 

7 ‘‘(C) Three members (one of which shall be 

8 Chair of the Commission appointed by the 

9 President) shall serve for 4 years. 

10 ‘‘(2) ASSIGNMENT OF TERMS.—The Commis11 sion shall designate the term length that each mem12 ber appointed under subsection (c) shall serve by 

13 unanimous agreement. In the event that unanimous 

14 agreement cannot be reached, term lengths shall be 

15 assigned to the members by a random process. 

16 ‘‘(g) VACANCIES.—Subject to subsection (e), in the 

17 event of a vacancy in the Commission, whether due to the 

18 resignation of a member, the expiration of a member’s 

19 term, or any other reason, the vacancy shall be filled in 

20 the manner in which the original appointment was made 

21 and shall not affect the powers of the Commission. 

22 ‘‘(h) ETHICS GUIDELINES.—At the first meeting of 

23 the Commission, the Commission shall draft appropriate 

24 ethics guidelines for members of the Commission and 

25 staff. The guidelines shall include provisions relating to 


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1 conflicts of interest, including financial conflicts of inter2 est, divided allegiances, and financial disclosure require3 ments. The Commission shall consult with the Secretary 

4 as a part of drafting the guidelines and shall furnish the 

5 Secretary with a copy of the completed guidelines. 

6 ‘‘(i) APPOINTMENT POWER.—Members of the Com7 mission appointed under subsection (c) shall not be sub8 ject to confirmation by the Senate. 

9 ‘‘SEC. 2058. FUNDING. 

10 ‘‘(a) IN GENERAL.—Out of any money in the Treas11 ury not otherwise appropriated, there is hereby appro12 priated to the Secretary, $300,000,000 to carry out the 

13 activities authorized under this subtitle, which shall re14 main available for expenditure through the date described 

15 in section 2053(c)(3). 

16 ‘‘(b) LIMITATION ON USE OF FUNDS.—Of the 

17 amounts appropriated to carry out this subtitle, the Sec18 retary may not use more than $2,000,000 in any fiscal 

19 year to support the review, approval, and oversight of so20 cial impact partnership projects, including activities con21 ducted by— 

22 ‘‘(1) the Federal Interagency Council on Social 

23 Impact Partnerships established under section 2056; 

24 ‘‘(2) the Commission on Social Impact Partner25 ships established under section 2057; and 


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1 ‘‘(3) any other agency consulted by the Sec2 retary before approving a social impact partnership 

3 project or a feasibility study under section 2054. 

4 ‘‘(c) NO FEDERAL FUNDING FOR CREDIT ENHANCE5 MENTS.—No amount appropriated to carry out this sub6 title may be used to provide any insurance, guarantee, or 

7 other credit enhancement to a State or local government 

8 under which a Federal payment would be made to a State 

9 or local government as the result of a State or local gov10 ernment failing to achieve an outcome specified in an 

11 agreement. 

12 ‘‘SEC. 2059. WEBSITE. 

13 ‘‘The Federal Interagency Council on Social Impact 

14 Partnerships shall establish and maintain a public website 

15 that shall display the following: 

16 ‘‘(1) A copy of, or method of accessing, each 

17 notice published regarding a social impact partner18 ship project pursuant to this subtitle. 

19 ‘‘(2) A copy of each feasibility study funded 

20 under section 2054. 

21 ‘‘(3) For each State or local government that 

22 has entered into an agreement with the Secretary 

23 for a social impact partnership project, the website 

24 shall contain the following information: 

25 ‘‘(A) The outcome goals of the project. 


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1 ‘‘(B) A description of each intervention in 

2 the project. 

3 ‘‘(C) The target population that will be 

4 served by the project. 

5 ‘‘(D) The expected social benefits to par6 ticipants who receive the intervention and oth7 ers who may be impacted. 

8 ‘‘(E) The detailed roles, responsibilities, 

9 and purposes of each Federal, State, or local 

10 government entity, intermediary, service pro11 vider, independent evaluator, investor, or other 

12 stakeholder. 

13 ‘‘(F) The payment terms, methodology 

14 used to calculate outcome payments, the pay15 ment schedule, and performance thresholds. 

16 ‘‘(G) The project budget. 

17 ‘‘(H) The project timeline. 

18 ‘‘(I) The project eligibility criteria. 

19 ‘‘(J) The evaluation design. 

20 ‘‘(K) The metrics used to determine wheth21 er the proposed outcomes have been achieved 

22 and how these metrics are measured. 

23 ‘‘(4) A copy of the progress reports and the 

24 final reports relating to each social impact partner25 ship project. 


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1 ‘‘(5) An estimate of the savings to the Federal, 

2 State, and local government, on a program-by-pro3 gram basis and in the aggregate, resulting from the 

4 successful completion of the social impact partner5 ship project. 

6 ‘‘SEC. 2060. REGULATIONS. 

7 ‘‘The Secretary, in consultation with the Federal 

8 Interagency Council on Social Impact Partnerships, may 

9 issue regulations as necessary to carry out this subtitle. 

10 ‘‘SEC. 2061. GAO EVALUATION. 

11 ‘‘(a) IN GENERAL.—Five years after the date of en12 actment of the Social Impact Partnerships to Pay for Re13 sults Act, the Comptroller General of the United States 

14 shall— 

15 ‘‘(1) conduct an evaluation of the social impact 

16 partnership projects funded under this subtitle and, 

17 to the extent the Comptroller General determines 

18 necessary, of any other activities carried out with 

19 funds made available to carry out this subtitle; and 

20 ‘‘(2) submit a report to the Committee on Ways 

21 and Means of the House of Representatives and to 

22 the Committee on Finance of the Senate that con23 tains the results of such evaluation. 

24 ‘‘(b) ACCESS TO RECORDS.—The Comptroller Gen25 eral of the United States shall have access to any books, 


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1 accounts, records, correspondence, and other documents 

2 that are related to the expenditure of Federal funds under 

3 this subtitle and that are in the possession, custody, or 

4 control of any entity receiving Federal funds under this 

5 subtitle or of any grantee or contractor of such an entity. 

6 ‘‘SEC. 2062. DEFINITIONS. 

7 ‘‘In this subtitle 

8 ‘‘(1) AGENCY.—The term ‘agency’ has the 

9 meaning given that term in section 551 of title 5, 

10 United States Code. 

11 ‘‘(2) INTERVENTION.—The term ‘intervention’ 

12 means a specific service delivered to achieve an im13 pact through a social impact partnership project. 

14 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

15 the Secretary of the Treasury. 

16 ‘‘(4) SOCIAL IMPACT PARTNERSHIP PROJECT.— 

17 The term ‘social impact partnership project’ means 

18 a project that finances social services using a social 

19 impact partnership model. 

20 ‘‘(5) SOCIAL IMPACT PARTNERSHIP MODEL.— 

21 The term ‘social impact partnership model’ means a 

22 method of financing social services in which— 

23 ‘‘(A) Federal funds are awarded to a State 

24 or local government only if a State or local gov25 ernment achieves certain outcomes agreed on by 


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1 the State or local government and the Sec2 retary; and 

3 ‘‘(B) the State or local government coordi4 nates with service providers, investors (if appli5 cable to the project), and (if necessary) an 

6 intermediary to identify— 

7 ‘‘(i) an intervention expected to 

8 produce the outcome; 

9 ‘‘(ii) a service provider to deliver the 

10 intervention to the target population; and 

11 ‘‘(iii) investors to fund the delivery of 

12 the intervention. 

13 ‘‘(6) STATE.—The term ‘State’ means each 

14 State of the United States, the District of Columbia, 

15 each commonwealth, territory or possession of the 

16 United States, and each federally recognized Indian 

17 tribe.’’. 

Æ 


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