II 

114TH CONGRESS 

2D SESSION S. 3458 

To establish programs to improve family economic security by breaking the 

cycle of multigenerational poverty, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2016 

Mr. HEINRICH (for himself and Ms. COLLINS) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To establish programs to improve family economic security 

by breaking the cycle of multigenerational poverty, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Two-Generation Economic Empowerment Act of 2016’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings; purposes. 

Sec. 3. Definitions. 


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TITLE I—INTERAGENCY COUNCIL ON MULTIGENERATIONAL 

POVERTY 

Sec. 101. Interagency Council on Multigenerational Poverty. 

Sec. 102. Information displayed on Council website. 

Sec. 103. GAO Report. 

Sec. 104. Authorization of appropriations. 

TITLE II—2-GENERATION PROGRAMS 

Sec. 201. Programs. 

Sec. 202. General provisions. 

TITLE III—PERFORMANCE PARTNERSHIP PILOT PROGRAM 

Sec. 301. Definitions. 

Sec. 302. Performance partnership pilots. 

Sec. 303. Reporting; evaluations. 

Sec. 304. Applicability to existing performance partnership pilots. 

TITLE IV—SOCIAL IMPACT BONDS PILOT PROGRAM 

Sec. 401. Definitions; purposes. 

Sec. 402. Social impact bond application. 

Sec. 403. Awarding social impact bond contracts. 

Sec. 404. Feasibility study funding. 

Sec. 405. Evaluations. 

Sec. 406. Role of Interagency Council on Multigenerational Poverty. 

Sec. 407. Availability of information related to social impact bond projects. 

Sec. 408. Funding. 

Sec. 409. Community Reinvestment Act. 

1 SEC. 2. FINDINGS; PURPOSES. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) Almost half, or 44 percent, of children in 

4 the United States are from low-income families. 

5 (2) Individuals caught in multigenerational pov6 erty tend to lack the support needed to move beyond 

7 day-to-day situations, make long-term financial 

8 plans, and support the community around them. 

9 (3) Twenty-five percent of children in the 

10 United States live in single-mother households, and 

11 80 percent of African-American or Hispanic children 


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1 who live in such households are from low-income 

2 families. 

3 (4) Many of the services and systems that are 

4 intended to help low-income families are fragmented, 

5 with approaches that address the needs of parents 

6 and children separately. These fragmented ap7 proaches often leave either the parent or the child 

8 behind and dim the family’s chance at success. 

9 (5) In 2009, the Department of Agriculture es10 timated that 11,500,000 individuals in the United 

11 States are from low-income families that reside more 

12 than 1 mile from a supermarket, and 2,300,000 of 

13 such individuals do not have access to a car. 

14 (6) Healthy communities have a variety of com15 ponents, including— 

16 (A) safe, sustainable, accessible, and af17 fordable transportation options that enable— 

18 (i) children to commute to and from 

19 school safely; and 

20 (ii) parents to seek work outside of 

21 their community; 

22 (B) housing that is affordable, high-qual23 ity, socially integrated, and location-efficient; 


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1 (C) access to quality schools, parks and 

2 other recreational facilities, child care, libraries, 

3 financial services, and other daily needs; and 

4 (D) support for healthy behavioral develop5 ment of children and adolescents. 

6 (7) A successful 2-generation program will— 

7 (A) improve family economic security by 

8 creating opportunities for, and addressing the 

9 needs of, parents and children; 

10 (B) break the cycle of multigenerational 

11 poverty; and 

12 (C) foster and develop healthy commu13 nities. 

14 (8) The return on investment in education for 

15 children and their parents is high. Early childhood 

16 education programs help children develop new skills 

17 and prepare them for grade school. A parent’s level 

18 of educational attainment is the best predictor of a 

19 child’s success. Higher education opens the door to 

20 a stable career with a family-sustaining wage, pro21 viding opportunities for families to break the cycle of 

22 multigenerational poverty. 

23 (9) Social capital is a key success factor of the 

24 2-generation approach and builds on the strength 

25 and resilience of families, bolstering the aspirations 


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1 parents have for their children and for themselves. 

2 Family poverty is associated with a weaker social 

3 network of support. For individuals living in certain 

4 regions, the lack of community development contrib5 utes to a lack of economic mobility and a lack of 

6 multigenerational success. 

7 (10) Physical and mental health have a major 

8 impact on the ability of a family to thrive. There is 

9 a well-documented correlation between poor health 

10 and poor family finances, with poor health causing 

11 poor family finances and poor family finances caus12 ing poor health. Improved physical health and health 

13 behaviors are associated with higher scores on stand14 ardized tests. There is a link between mothers pro15 viding a higher level of emotional support and posi16 tive outcomes in children, such as children dem17 onstrating an improved social competence and en18 gagement in schooling. Meanwhile, social isolation of 

19 children is associated with a higher rate of abuse 

20 and neglect of children. 

21 (b) PURPOSE.—The purpose of this Act is to improve 

22 family economic security by breaking the cycle of 

23 multigenerational poverty, including through developing 2- 

24 generation programs that involve initiatives of the Federal 


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1 Government, States, local governments, and tribal govern2 ments and initiatives of the private sector. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) 2-GENERATION APPROACH.—The term ‘‘2- 

6 generation approach’’ means the approach to break7 ing the cycle of multigenerational poverty by improv8 ing family economic security through the implemen9 tation of 2-generation programs that create opportu10 nities for, and address the needs of, parents and 

11 children together. 

12 (2) 2-GENERATION PROGRAM.—The term ‘‘2- 

13 generation program’’ means a pilot program estab14 lished under section 201(a). 

15 (3) AGENCY.—The term ‘‘agency’’ has the 

16 meaning given such term in section 551 of title 5, 

17 United States Code. 

18 (4) COUNCIL AGENCY.—The term ‘‘Council 

19 agency’’ means an agency listed in any of subpara20 graphs (A) through (M) of section 101(c)(1). 

21 (5) DISCRETIONARY APPROPRIATIONS.—The 

22 term ‘‘discretionary appropriations’’ has the mean23 ing given such term in section 250(c) of the Bal24 anced Budget and Emergency Deficit Control Act of 

25 1985 (2 U.S.C. 900(c)). 


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1 (6) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given such term in section 101(a) of the 

4 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

5 (7) INTERVENTION.—The term ‘‘intervention’’ 

6 means a specific service delivered to achieve an im7 pact through a social impact bond project under title 

8 IV. 

9 (8) MULTIGENERATIONAL POVERTY.—The term 

10 ‘‘multigenerational poverty’’ means pervasive poverty 

11 transferred from parents to their children through 

12 structural and systematic factors. 

13 (9) SCHOOL READINESS.—The term ‘‘school 

14 readiness’’ means the development of— 

15 (A) physical well-being and motor skills; 

16 (B) social and emotional skills; 

17 (C) approaches to learning; 

18 (D) language skills (including early lit19 eracy); and 

20 (E) cognition and general knowledge. 

21 (10) STATE.—The term ‘‘State’’ means each of 

22 the several States of the United States, the District 

23 of Columbia, and each commonwealth or territory of 

24 the United States. 


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1 (11) VULNERABLE POPULATION.—The term 

2 ‘‘vulnerable population’’ means a population con3 sisting of individuals who, as determined by the ap4 plicable lead agency designated under section 

5 202(a)— 

6 (A) are economically disadvantaged; 

7 (B) are racial or ethnic minorities; 

8 (C) are low-income children; 

9 (D) are elderly; 

10 (E) are homeless; 

11 (F) are individuals with a disability, as de12 fined in section 3 of the Americans with Dis13 abilities Act of 1990 (42 U.S.C. 12102); 

14 (G) are infected with the human immuno15 deficiency virus (HIV); or 

16 (H) have any other chronic health condi17 tion, including a severe mental illness. 

18 TITLE I—INTERAGENCY COUN19 CIL ON MULTIGENERATIONAL 

20 POVERTY 

21 SEC. 101. INTERAGENCY COUNCIL ON MULTIGENERATION22 AL POVERTY. 

23 (a) ESTABLISHMENT.—There is established within 

24 the Federal Government an interagency council to be 

25 known as the ‘‘Interagency Council on Multigenerational 


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1 Poverty’’ (referred to in this Act as the ‘‘Council’’) to 

2 carry out the objectives under subsection (b) and the 2- 

3 generation approach, including by providing guidance, and 

4 addressing questions pertaining, to 2-generation programs 

5 and other programs engaging in efforts to break the cycle 

6 of multigenerational poverty. 

7 (b) OBJECTIVES.—The objectives of the Council are 

8 each of the following: 

9 (1) Establish an ongoing system of coordination 

10 among and within agencies or organizations related 

11 to programs aimed at breaking the cycle of 

12 multigenerational poverty. 

13 (2) Identify knowledge gaps, research needs, 

14 and policy and program deficiencies associated with 

15 multigenerational poverty. 

16 (3) Identify best practices of programs, includ17 ing the 2-generation programs, and methodologies to 

18 break the cycle of multigenerational poverty. 

19 (c) MEMBERSHIP.— 

20 (1) COMPOSITION.—The Council shall be com21 posed of at least 1 designee from each of the fol22 lowing: 

23 (A) The Office of Management and Budg24 et. 

25 (B) The Bureau of Indian Affairs. 


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1 (C) The Department of Agriculture. 

2 (D) The Department of Education. 

3 (E) The Department of Health and 

4 Human Services. 

5 (F) The Department of Housing and 

6 Urban Development. 

7 (G) The Department of Labor. 

8 (H) The Department of Transportation. 

9 (I) The Department of the Treasury. 

10 (J) The Department of Veterans Affairs. 

11 (K) The Corporation for National and 

12 Community Service. 

13 (L) The Domestic Policy Council. 

14 (M) The National Economic Council. 

15 (2) DESIGNATION.— 

16 (A) IN GENERAL.—The head of each 

17 Council agency shall designate at least 1 em18 ployee described in subparagraph (B) of such 

19 agency to serve as a member of the Council. 

20 (B) RESPONSIBILITIES.—An employee de21 scribed in this subparagraph shall be a senior 

22 employee of the agency whose responsibilities 

23 relate to policies, procedures, and economics 

24 with respect to family well-being. 

25 (3) CHAIRPERSON.— 


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1 (A) IN GENERAL.—The Chairperson of the 

2 Council (referred to in this section as the 

3 ‘‘Chairperson’’) shall be a designee under para4 graph (1)(E), as selected by the Council if there 

5 is more than 1 such designee. 

6 (B) INITIATING GUIDANCE.—The Chair7 person, on behalf of the Council, shall identify 

8 and invite individuals from diverse entities, in9 cluding advocates, individuals from nonprofit 

10 organizations, small businesses, and philan11 thropic organizations, and researchers from in12 stitutions of higher education, to provide the 

13 Council with advice and knowledge pertaining 

14 to addressing multigenerational poverty. 

15 (d) DUTIES.— 

16 (1) STRATEGIC PLAN TO END AND PREVENT

17 MULTIGENERATIONAL POVERTY.—Not later than 1 

18 year after the date of enactment of this Act, the 

19 Council shall develop, make available for public com20 ment, and submit to the President and Congress, a 

21 strategic plan to end and prevent multigenerational 

22 poverty that includes activities under the 2-genera23 tion approach and other activities consistent with 

24 the objectives under subsection (b). The Council 

25 shall update such plan annually. 


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1 (2) IMPLEMENTING AND ADVISING 2-GENERA2 TION PROGRAMS.—The Council shall establish proce3 dures for implementing the 2-generation approach 

4 that consist of— 

5 (A) coordinating the efforts of each 2-gen6 eration program; 

7 (B) advising and assisting relevant agen8 cies in the development and implementation of 

9 each such program; 

10 (C) advising relevant agencies on specific 

11 programmatic and policy matters related to 

12 each such program; 

13 (D) providing relevant subject matter ex14 pertise to each lead agency designated under 

15 section 202(a); and 

16 (E) identifying and addressing issues that 

17 may influence the future of each 2-generation 

18 program. 

19 (3) REPORTS TO CONGRESS.— 

20 (A) ANNUAL REPORTS.—Not later than 1 

21 year after the date of enactment of this Act, 

22 and annually thereafter, the Council shall pre23 pare and submit to Congress a report that in24 cludes— 


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1 (i) information on the progress and 

2 results of each 2-generation program in 

3 achieving the appropriate quantitative lev4 els for the outcomes described in section 

5 201(b) that each program is designed to 

6 achieve; and 

7 (ii) information on any issue con8 cerning each such program and rec9 ommendations to address each such issue. 

10 (B) BIANNUAL REPORTS.—Not later than 

11 1 year after the date of enactment of this Act, 

12 and every 2 years thereafter, the Council shall 

13 prepare and submit to Congress a report that 

14 includes— 

15 (i) information on the overall progress 

16 of the Council in ending and preventing 

17 multigenerational poverty; and 

18 (ii) legislative policy recommendations, 

19 including addressing any needs for greater 

20 legislative authority to meet the objectives 

21 of this Act. 

22 (4) AVAILABLE FUNDING.—Not later than 90 

23 days after the date of enactment of this Act, each 

24 Council agency shall identify, prepare, and submit to 

25 the Chairperson a list of funding sources that could 


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1 support 2-generation programs in achieving the ap2 propriate quantitative levels for the outcomes de3 scribed in section 201(b) that each program is de4 signed to achieve. 

5 SEC. 102. INFORMATION DISPLAYED ON COUNCIL WEBSITE. 

6 (a) IN GENERAL.—The Council shall ensure that the 

7 information listed in subsection (b) is made available to 

8 the public and displayed on the official website of the 

9 Council. 

10 (b) INFORMATION.—The information listed in this 

11 subsection is each of the following: 

12 (1) The national strategic plan to end and pre13 vent multigenerational poverty required under sec14 tion 101(d)(1). 

15 (2) Information on the 2-generation programs, 

16 including— 

17 (A) the outcomes described in section 

18 201(b) that each program is designed to 

19 achieve, and the appropriate quantitative levels 

20 for achieving such outcomes; 

21 (B) national partners consisting of private 

22 and government entities participating in (or in23 terested in participating in), including by fund24 ing, a 2-generation program; 


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1 (C) a description of the 2-generation pro2 gram described in title III, including detailed 

3 information on the performance partnership pi4 lots approved under section 302(a), the discre5 tionary appropriations used to carry out such 

6 program, and any waivers received under sec7 tion 202(d) for such program, including infor8 mation specifying the waivers used for each 

9 such pilot; and 

10 (D) a description of the 2-generation pro11 gram described in title IV, including the infor12 mation described in section 407. 

13 (3) Each report, including the data contained in 

14 each such report, that— 

15 (A) the Council submits to Congress under 

16 section 101(d)(3); 

17 (B) the Comptroller General of the United 

18 States submits under section 103 or 303(c); 

19 and 

20 (C) is submitted to the Council under sec21 tion 303(d) or subsection (d) or (e) of section 

22 405. 

23 (4) Information describing the best practices 

24 (as determined by the Council) of the 2-generation 

25 programs, and other programs engaging in efforts to 


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1 break the cycle of multigenerational poverty, to en2 able interested entities to emulate such best prac3 tices in any efforts to end or prevent 

4 multigenerational poverty. 

5 SEC. 103. GAO REPORT. 

6 (a) IN GENERAL.—Not later than 1 year after the 

7 date of enactment of this Act, the Comptroller General 

8 of the United States shall conduct a study, and submit 

9 a report to Congress and the Interagency Council on 

10 Multigenerational Poverty, on Federal block grants under 

11 the jurisdiction of council participants to identify barriers 

12 and opportunities for collaboration in order to carry out 

13 the 2-generation approach. 

14 (b) CONTENTS.—The study and report under sub15 section (a) shall— 

16 (1) identify block grants that could be used for 

17 the 2-generation approach and whether waiver of 

18 any funding restriction or requirement in particular 

19 would facilitate the 2-generation approach without 

20 compromising the policy goals of those block grants; 

21 (2) identify opportunities and barriers for col22 laboration among block-grant recipients; and 

23 (3) examine any duplications of reporting or ap24 plications as a result of such collaboration. 


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1 SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated for each of 

3 fiscal years 2017 through 2022 such sums as may be nec4 essary to carry out this title. 

5 TITLE II—2-GENERATION 

6 PROGRAMS 

7 SEC. 201. PROGRAMS. 

8 (a) IN GENERAL.—The Council shall establish, as 2- 

9 generation programs, each of the following: 

10 (1) The 2-generation performance partnership 

11 pilot program described in title III. 

12 (2) The 2-generation social impact bonds pilot 

13 program described in title IV. 

14 (b) OUTCOME MEASURES.— 

15 (1) ESTABLISHMENT.—The Council shall estab16 lish clearly defined outcome measures for each 2- 

17 generation program that include the outcomes de18 scribed in paragraphs (2) and (3) that each program 

19 is designed to achieve and the appropriate quan20 titative levels for achieving such outcomes. 

21 (2) PRIMARY OUTCOMES.—Each 2-generation 

22 program shall be designed to achieve primary out23 comes consisting of— 

24 (A) improved academic achievement of 

25 children and increased earning potential of par26 ents, including enhanced— 


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1 (i) school readiness of children from 

2 birth through age 5; and 

3 (ii) educational attainment of parents; 

4 and 

5 (B) two or more of the following outcomes: 

6 (i) Improved financial stability of fam7 ilies, including increased financial capa8 bility of, and savings for, parents and chil9 dren, achieved through increased earning 

10 potential and enhanced financial decision11 making skills of parents and children. 

12 (ii) Increased access for parents and 

13 children to programs that foster healthy 

14 parent-child relationships. 

15 (iii) Increased opportunities for all 

16 family members to participate in programs 

17 that address the mental health needs of 

18 parents and children. 

19 (iv) Improved education of parents 

20 and children on obesity prevention and nu21 trition, and a subsequent reduction in 

22 rates of obesity and related diseases among 

23 parents and children. 

24 (v) Improved maternal and child 

25 health, including social and emotional 


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1 health and development of mothers and 

2 children. 

3 (3) COST-EFFECTIVE OUTCOMES.—In achieving 

4 the primary outcomes described in paragraph (2), 

5 each 2-generation program shall make better use of 

6 budgetary resources to seek enhanced outcomes that 

7 are cost-effective for regions, communities, or vul8 nerable populations. 

9 SEC. 202. GENERAL PROVISIONS. 

10 (a) LEAD AGENCIES.—The Director of the Office of 

11 Management and Budget shall, in collaboration with the 

12 Council— 

13 (1) designate a lead agency from among the 

14 Council agencies for the purpose of carrying out the 

15 2-generation program described in title III; and 

16 (2) designate a lead agency from among the 

17 Council agencies for the purpose of carrying out the 

18 2-generation program described in title IV. 

19 (b) AGENCY HEAD DETERMINATIONS.— 

20 (1) IN GENERAL.—A Council agency may par21 ticipate (directly or by providing discretionary appro22 priations that have been appropriated to such agen23 cy) in the 2-generation program described in title III 

24 only upon providing a written determination by the 

25 head of such agency to the lead agency designated 


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1 under subsection (a)(1) that, based on the best 

2 available information, transferring resources to par3 ticipate in such program will not— 

4 (A) result in such agency reducing any 

5 services (funded in whole or in part by the dis6 cretionary appropriations of such agency) that 

7 such agency provided prior to participating in 

8 the 2-generation program; and 

9 (B) otherwise adversely affect vulnerable 

10 populations that are recipients of such services. 

11 (2) CONSIDERATION.—In making the deter12 mination under paragraph (1), the head of the 

13 Council agency may take into consideration the dis14 cretionary appropriations that will be used in the 2- 

15 generation program. 

16 (c) TRANSFER AUTHORITY.— 

17 (1) 2-GENERATION ACCOUNT.—The lead agency 

18 designated under subsection (a)(1) may establish an 

19 account for the purpose of carrying out the 2-gen20 eration program described in title III, allowing mul21 tiple Council agencies participating in the 2-genera22 tion program to combine discretionary appropria23 tions for the purpose of carrying out the 2-genera24 tion program. 


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1 (2) TRANSFERS.—Subject to the written ap2 proval of the Director of the Office of Management 

3 and Budget and paragraph (4), the head of each 

4 Council agency participating in the 2-generation pro5 gram described in title III may transfer discre6 tionary appropriations of the agency to the account 

7 established under paragraph (1), to be used for such 

8 2-generation program. 

9 (3) AVAILABILITY.— 

10 (A) PURPOSES.—Subject to the waiver au11 thority under subsection (d), the discretionary 

12 appropriations transferred under paragraph (2) 

13 shall remain available for the same purposes for 

14 which the appropriations were originally appro15 priated. 

16 (B) OBLIGATION BY THE FEDERAL GOV17 ERNMENT.—The discretionary appropriations 

18 transferred under paragraph (2) shall remain 

19 available for obligation by the Federal Govern20 ment for the period for which such appropria21 tions were permitted to remain available, as of 

22 the day before the date of the transfer. 

23 (4) NOTICE REQUIREMENT.—Not later than 30 

24 days prior to transferring any discretionary appro25 priations under paragraph (2), the head of the 


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1 Council agency transferring the appropriations shall 

2 provide written notice of the transfer to the Com3 mittee on Appropriations of the House of Represent4 atives, the Committee on Appropriations of the Sen5 ate, and other appropriate committees of Congress. 

6 (d) WAIVER AUTHORITY.— 

7 (1) IN GENERAL.—To reduce administrative 

8 burdens (including application and reporting re9 quirements) and subject to other provisions of this 

10 Act (but notwithstanding subsection (c)(3)(A)), the 

11 head of a Council agency participating in the 2-gen12 eration program described in title III may waive (in 

13 whole or in part) the application, solely with respect 

14 to discretionary appropriations used in such 2-gen15 eration program, of any statutory, regulatory, or ad16 ministrative requirement that such agency head— 

17 (A) is authorized to waive (in accordance 

18 with the terms and conditions of the Federal 

19 law authorizing such appropriations); or 

20 (B) would not otherwise be authorized to 

21 waive, but for the application of this subsection. 

22 (2) LIMITATIONS.— 

23 (A) IN GENERAL.—An agency head de24 scribed in paragraph (1) shall not waive any re25 quirement related to nondiscrimination, wage 


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1 and labor standards, or allocation of funds to 

2 State or sub-State levels. 

3 (B) REQUIREMENTS.—For the waiver of 

4 any statutory, regulatory, or administrative re5 quirement described in paragraph (1)(B), an 

6 agency head described in paragraph (1) shall— 

7 (i) prior to granting the waiver, sub8 mit to the lead agency designated under 

9 subsection (a)(1) a written determination, 

10 with respect to the discretionary appropria11 tions described in paragraph (1), that the 

12 granting of such waiver for purposes of the 

13 2-generation program described in title 

14 III— 

15 (I) is consistent with the statu16 tory purposes of the Federal program 

17 for which such discretionary appro18 priations were appropriated and the 

19 other provisions of this section, as 

20 well as the written determination by 

21 such agency head under subsection 

22 (b)(1); 

23 (II) is necessary to achieve the 

24 appropriate quantitative levels for the 

25 outcomes described in section 201(b) 


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1 that the program is designed to 

2 achieve, and is no broader in scope 

3 than is necessary to achieve such lev4 els; and 

5 (III) will result in— 

6 (aa) realizing efficiencies by 

7 simplifying reporting burdens or 

8 reducing administrative barriers 

9 with respect to such discretionary 

10 appropriations; or 

11 (bb) increasing the ability of 

12 individuals to obtain access to 

13 services that are provided 

14 through such discretionary ap15 propriations; and 

16 (ii) provide at least 60 days of ad17 vance written notice to the Committee on 

18 Appropriations of the House of Represent19 atives, the Committee on Appropriations of 

20 the Senate, and other appropriate commit21 tees of Congress. 

22 (e) PROHIBITED USE OF ASSESSMENT FOR YOUNG

23 CHILDREN.—To participate in a 2-generation program de24 scribed in title III or IV, an entity shall provide an assur25 ance that the entity will not assess the achievement of chilVerDate Sep 11 2014 20:49 Oct 05, 2016 Jkt 069200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S3458.IS S3458

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1 dren from birth through grade 2, or programs providing 

2 services to such children, by engaging in activities that in3 clude— 

4 (1) assessing such children or programs in a 

5 manner that provides or leads to any reward or 

6 sanction for any individual child, teacher, early 

7 childhood education program, as defined in section 

8 103 of the Higher Education Act of 1965 (20 

9 U.S.C. 1003), or school; 

10 (2) using a single method for assessing the ef11 fectiveness of a program serving such children as the 

12 primary or only method for assessing such program; 

13 or 

14 (3) evaluating such children for any purpose 

15 other than to— 

16 (A) improve instruction or classroom envi17 ronment; 

18 (B) target high-quality, evidence-based 

19 professional development; 

20 (C) determine the need for health (includ21 ing mental health), disability, or family support 

22 services; 

23 (D) inform the quality improvement proc24 ess for such programs at the State level; 


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1 (E) evaluate such a program for the pur2 poses of program improvement and providing 

3 information to the parents of children partici4 pating in such program; or 

5 (F) provide research conducted as part of 

6 a national evaluation. 

7 TITLE III—PERFORMANCE 

8 PARTNERSHIP PILOT PROGRAM 

9 SEC. 301. DEFINITIONS. 

10 In this title: 

11 (1) LEAD AGENCY.—The term ‘‘lead agency’’ 

12 means the lead agency designated under section 

13 202(a)(1). 

14 (2) PERFORMANCE PARTNERSHIP PILOT.—The 

15 term ‘‘performance partnership pilot’’ means a 

16 project that— 

17 (A) seeks to identify, through a demonstra18 tion, cost-effective strategies for providing serv19 ices at the State, regional, or local level; 

20 (B) involves two or more Federal programs 

21 (administered by one or more Federal agen22 cies)— 

23 (i) with related policy goals; and 


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1 (ii) at least one of which is adminis2 tered (in whole or in part) by a State, local 

3 government, or tribal government; 

4 (C) carries out the 2-generation approach 

5 by achieving the outcomes described in section 

6 201(b), including making better use of budg7 etary resources to seek enhanced outcomes that 

8 are cost-effective for regions, communities, or 

9 vulnerable populations; and 

10 (D) consistent with this title, allows— 

11 (i) an entity participating in the 

12 project to combine multiple sources of 

13 funding acquired by the entity; and 

14 (ii) multiple entities participating in 

15 the project to combine sources of funding 

16 acquired by the entities. 

17 SEC. 302. PERFORMANCE PARTNERSHIP PILOTS. 

18 (a) APPROVAL OF PILOTS.—In accordance with title 

19 II and this title, the lead agency shall approve not more 

20 than 5 performance partnership pilots under the program 

21 described in this title, by entering into performance part22 nership agreements under subsection (c). 

23 (b) USE OF DISCRETIONARY APPROPRIATIONS.— 

24 Subject to section 202 and subsections (a) and (c), a 

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1 propriated to such agency to participate in one or more 

2 of the approved performance partnership pilots. 

3 (c) PERFORMANCE PARTNERSHIP AGREEMENTS.— 

4 (1) IN GENERAL.—A Council agency may use 

5 discretionary appropriations to participate in a per6 formance partnership pilot only in accordance with 

7 the terms of a performance partnership agreement, 

8 described in paragraph (3), that is entered into be9 tween— 

10 (A) subject to paragraph (2), the lead 

11 agency on behalf of each Council agency partici12 pating in such pilot; and 

13 (B) a representative of each State, local 

14 government, or tribal government that has ap15 plied for participation in such pilot, in accord16 ance with application procedures established by 

17 the lead agency. 

18 (2) LIMITATION.—The lead agency may only 

19 enter into an agreement under paragraph (1) upon 

20 receiving, from the head of each Council agency to 

21 be participating in such pilot, a written concurrence 

22 to enter into such agreement, including an agree23 ment that such Council agency will comply with all 

24 requirements under this Act for participating in 

25 such pilot. 


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1 (3) TERMS OF THE AGREEMENT.—A perform2 ance partnership agreement entered into under para3 graph (1) shall specify, at a minimum, each of the 

4 following: 

5 (A) The length of such agreement, which 

6 shall end not later than 5 fiscal years after the 

7 date of enactment of this Act. 

8 (B) The Federal programs and federally 

9 funded services that are involved in such pilot. 

10 (C) The discretionary appropriations that 

11 are being used in the performance partnership 

12 pilot (by the respective Federal account identi13 fier, and the total amount from such account 

14 that is being used in such pilot), and the period 

15 of availability for obligation by the Federal Gov16 ernment of such funds. 

17 (D) The non-Federal funds that are being 

18 used in such pilot, by source (which may in19 clude private funds and governmental funds) 

20 and by amount. 

21 (E) The State, local, or tribal programs 

22 that are involved in such pilot. 

23 (F) The populations to be served by such 

24 pilot. 


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1 (G) The cost-effective Federal oversight 

2 procedures that will be used for the purpose of 

3 maintaining the necessary level of account4 ability for the use of the discretionary appro5 priations in such pilot. 

6 (H) The cost-effective State, local, or tribal 

7 oversight procedures that will be used for the 

8 purpose of maintaining the necessary level of 

9 accountability for the use of the discretionary 

10 appropriations in such pilot. 

11 (I) The outcomes described in section 

12 201(b) that such pilot is designed to achieve 

13 and the appropriate quantitative levels for 

14 achieving such outcomes. 

15 (J) The appropriate, reliable, and objective 

16 outcome-measurement methodology that will be 

17 used in carrying out such pilot, to determine 

18 the success of such pilot in achieving any out19 come, and the appropriate quantitative level for 

20 achieving such outcome, specified under sub21 paragraph (I). 

22 (K) Any statutory, regulatory, or adminis23 trative requirements related to a Federal man24 datory program that are barriers to achieving 


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1 any outcome or level specified under subpara2 graph (I). 

3 (L) In a case in which, during the course 

4 of such pilot, it is determined that the pilot is 

5 not achieving the appropriate quantitative levels 

6 for the outcomes specified under subparagraph 

7 (I)— 

8 (i) any consequence that will result 

9 from the failure to achieve such levels, with 

10 respect to the discretionary appropriations 

11 that are being used in such pilot; and 

12 (ii) the corrective actions that will be 

13 taken to increase the likelihood that such 

14 pilot, upon completion, will have achieved 

15 such levels. 

16 SEC. 303. REPORTING; EVALUATIONS. 

17 (a) STATE, LOCAL GOVERNMENT, OR TRIBAL GOV18 ERNMENT REPORTS.— 

19 (1) IN GENERAL.—Not later than 90 days after 

20 the first day of each fiscal year, a State, local gov21 ernment, or tribal government participating (in 

22 whole or in part) in a performance partnership pilot 

23 shall submit a report to the lead agency. 

24 (2) CONTENTS.—The report under paragraph 

25 (1) shall include information on— 


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1 (A) the progress of such performance part2 nership pilot in achieving the appropriate quan3 titative levels for the outcomes the pilot is de4 signed to achieve under section 302(c)(3)(I), in5 cluding data supporting such progress; and 

6 (B) the discretionary appropriations, and 

7 any other funds, used to carry out such per8 formance partnership pilot. 

9 (b) COUNCIL AGENCY REPORTS.—Not later than 120 

10 days after the first day of each fiscal year, each Council 

11 agency participating in a performance partnership pilot 

12 shall submit a report to the lead agency in such manner 

13 and containing such information about the performance 

14 partnership pilot as the lead agency may require. 

15 (c) EVALUATION BY COMPTROLLER GENERAL.— 

16 (1) IN GENERAL.—The Comptroller General of 

17 the United States shall conduct an evaluation of the 

18 2-generation program described in this title, which 

19 shall include information describing— 

20 (A) the criteria used by the lead agency to 

21 approve performance partnership pilots; 

22 (B) the States, local governments, and 

23 tribal governments that participated in any per24 formance partnership pilot; 


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1 (C) how each such State, local government, 

2 and tribal government used funds received 

3 under such performance partnership pilot; and 

4 (D) the success of each performance part5 nership pilot in achieving the appropriate quan6 titative levels for the outcomes the pilot is de7 signed to achieve under section 302(c)(3)(I). 

8 (2) SUBMISSION.—Not later than 90 days after 

9 the first day of each fiscal year, the Comptroller 

10 General of the United States shall submit a report 

11 containing the evaluation conducted under para12 graph (1) to the lead agency and the Council. 

13 (d) LEAD AGENCY REPORT TO THE COUNCIL.—Not 

14 later than 180 days after the first day of each fiscal year, 

15 the lead agency shall submit a report to the Council that 

16 evaluates the information provided in the reports under 

17 subsections (a), (b), and (c). 

18 SEC. 304. APPLICABILITY TO EXISTING PERFORMANCE 

19 PARTNERSHIP PILOTS. 

20 Nothing in this Act shall be construed to apply to 

21 any performance partnership pilot authorized under sec22 tion 526 of the Departments of Labor, Health and Human 

23 Services, and Education, and Related Agencies Appropria24 tions Act, 2014 (Public Law 113–76), section 524 of the 

25 Departments of Labor, Health and Human Services, and 


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1 Education, and Related Agencies Appropriations Act, 

2 2015 (Public Law 113–235), or section 525 of the Depart3 ments of Labor, Health and Human Services, and Edu4 cation, and Related Agencies Appropriations Act, 2016 

5 (Public Law 114–113). 

6 TITLE IV—SOCIAL IMPACT 

7 BONDS PILOT PROGRAM 

8 SEC. 401. DEFINITIONS; PURPOSES. 

9 (a) DEFINITIONS OF SOCIAL IMPACT BOND MODEL

10 AND SOCIAL IMPACT BOND PROJECT.— 

11 (1) SOCIAL IMPACT BOND MODEL.—The term 

12 ‘‘social impact bond model’’ means a method of fi13 nancing social services in which— 

14 (A) Federal funds are awarded to a State 

15 or local government only if such State or local 

16 government achieves appropriate quantitative 

17 levels for certain outcomes agreed upon by the 

18 State or local government and the lead agency 

19 designated under section 202(a)(2); and 

20 (B) the State or local government collabo21 rates with service providers, investors (if appli22 cable to the project), and (if necessary) an 

23 intermediary to identify— 


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1 (i) an intervention expected to 

2 produce such achievement on appropriate 

3 quantitative levels; 

4 (ii) a service provider to deliver the 

5 intervention to the target population; and 

6 (iii) if applicable, investors to assist in 

7 funding the delivery of the intervention. 

8 (2) SOCIAL IMPACT BOND PROJECT.—The term 

9 ‘‘social impact bond project’’ means a project that fi10 nances social services using a social impact bond 

11 model. 

12 (b) PURPOSES.—The purposes of this title are the 

13 following: 

14 (1) To reduce poverty among parents and chil15 dren. 

16 (2) To improve the lives of families and individ17 uals in need in the United States by funding social 

18 programs that achieve real results. 

19 (3) To ensure Federal funds are used effectively 

20 on social services to produce positive outcomes for 

21 both service recipients and taxpayers. 

22 (4) To establish programs that lessen the pov23 erty burden families face in the short-term while fos24 tering opportunities for families to achieve long-term 

25 success. 


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1 (5) To establish the use of social impact bonds 

2 to address some of our Nation’s most pressing prob3 lems. 

4 (6) To facilitate the creation of public-private 

5 partnerships that bundle philanthropic and other 

6 private resources with existing public spending to 

7 scale up effective social interventions already being 

8 implemented by private organizations, nonprofits, 

9 charitable organizations, and local governments 

10 across the country. 

11 (7) To bring pay-for-performance to the social 

12 sector, allowing the United States to improve the im13 pact and effectiveness of vital social programs. 

14 SEC. 402. SOCIAL IMPACT BOND APPLICATION. 

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

16 of the enactment of this Act, the agency designated by 

17 the Council under section 202(a)(2) (referred to in this 

18 title as the ‘‘lead agency’’), in consultation with the Coun19 cil, shall publish in the Federal Register a notice that the 

20 lead agency is seeking proposals from States or local gov21 ernments for social impact bond projects in accordance 

22 with this section. 

23 (b) REQUIREMENTS FOR SOCIAL IMPACT BOND

24 PROJECTS.—To qualify as a social impact bond project 


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1 under this title, the services provided by the State or local 

2 government through the project must— 

3 (1) produce social benefits and Federal savings 

4 by achieving outcomes under section 201(b) at the 

5 appropriate quantitative levels; and 

6 (2) supplement and not supplant any services 

7 provided by the State or local government prior to 

8 the commencement of the project. 

9 (c) FEASIBILITY STUDY REQUIRED.—The notice de10 scribed in subsection (a) shall require a State or local gov11 ernment to submit a feasibility study for the social impact 

12 bond project that contains the following information: 

13 (1) The outcome goals of the project. 

14 (2) A description of each intervention in the 

15 project and the anticipated outcome of such inter16 vention. 

17 (3) Rigorous evidence demonstrating that the 

18 intervention can be expected to produce the desired 

19 outcome. 

20 (4) The target population that will be served by 

21 the project. 

22 (5) The expected social benefits to participants 

23 who receive the intervention and others who may be 

24 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 prepared by the State or local government of 

6 the savings to the Federal, State, and local govern7 ment, on a program-by-program basis and in the ag8 gregate, if the project is implemented and the out9 comes are achieved. 

10 (8) If savings resulting from the successful 

11 completion of the project are estimated to accrue to 

12 the State or local government, the likelihood of the 

13 State or local government to realize those savings. 

14 (9) A plan for delivering the intervention 

15 through a social impact bond model. 

16 (10) A description of the expertise of each serv17 ice provider that will administer the intervention. 

18 (11) An explanation of the experience of the 

19 State or local government, the intermediary, or the 

20 service provider in raising private and philanthropic 

21 capital to fund social service investments. 

22 (12) The detailed roles and responsibilities of 

23 each entity involved in the project, including any 

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1 ice provider, independent evaluator, investor, or 

2 other stakeholder. 

3 (13) A summary of the experience of the service 

4 provider delivering the proposed intervention, a simi5 lar intervention, or a summary demonstrating the 

6 service provider has the expertise necessary to de7 liver the intervention. 

8 (14) A summary of the unmet need in the area 

9 where the intervention will be delivered or among the 

10 target population who will receive the intervention. 

11 (15) The payment terms, the methodology used 

12 to calculate outcome payments, the payment sched13 ule, and performance thresholds. 

14 (16) The project budget. 

15 (17) The project timeline. 

16 (18) The criteria used to determine the eligi17 bility of an individual for the project, including how 

18 selected populations will be identified, how they will 

19 be referred to the project, and how they will be en20 rolled in the project. 

21 (19) The evaluation design. 

22 (20) The metrics that will be used to determine 

23 whether the outcomes have been achieved and how 

24 such metrics will be measured. 


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1 (21) A summary explaining the independence of 

2 the evaluator from the other entities involved in the 

3 project and the evaluator’s experience in conducting 

4 rigorous evaluations of program effectiveness includ5 ing, where available, well-implemented randomized 

6 controlled trials on the intervention or similar inter7 ventions. 

8 (22) The capacity of the service provider to de9 liver the intervention to the number of participants 

10 the State or local government proposes to serve in 

11 the project. 

12 (23) An assurance that the services provided by 

13 the State or local government through the project 

14 will supplement and not supplant any services pro15 vided by the State or local government prior to the 

16 commencement of the project. 

17 (d) PROJECT INTERMEDIARY INFORMATION RE18 QUIRED.—The feasibility study described in subsection (c) 

19 shall also contain the following information about the 

20 intermediary for the social impact bond project (whether 

21 the intermediary is the service provider or other entity): 

22 (1) Experience and capacity for providing or fa23 cilitating the provision of the type of intervention 

24 proposed. 

25 (2) The mission and goals. 


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1 (3) Information on whether the intermediary is 

2 already working with service providers that provide 

3 this intervention or an explanation of the capacity of 

4 the intermediary to begin working with service pro5 viders to provide the intervention. 

6 (4) Experience working in a collaborative envi7 ronment across government and nongovernmental 

8 entities. 

9 (5) Previous experience collaborating with pub10 lic or private entities to implement evidence-based 

11 programs. 

12 (6) Ability to raise or provide funding to cover 

13 operating costs (if applicable to the project). 

14 (7) Capacity and infrastructure to track out15 comes and measure results, including— 

16 (A) capacity to track and analyze program 

17 performance; and 

18 (B) experience with performance-based 

19 contracting and achieving project milestones 

20 and targets. 

21 (8) Role in delivering the intervention. 

22 (9) How the intermediary would monitor pro23 gram success, including a description of the interim 

24 benchmarks and outcome measures. 


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1 SEC. 403. AWARDING SOCIAL IMPACT BOND CONTRACTS. 

2 (a) TIMELINE IN AWARDING CONTRACT.—Not later 

3 than 6 months after receiving an application in accordance 

4 with section 402, the lead agency shall determine whether 

5 to enter into a contract for a social impact bond project 

6 with a State or local government. 

7 (b) CONSIDERATIONS IN AWARDING CONTRACT.—In 

8 determining whether to enter into a contract for a social 

9 impact bond project (the application for which was sub10 mitted under section 402) the lead agency, in consultation 

11 with the Council and the head of any Federal agency ad12 ministering a similar intervention or serving a population 

13 similar to that served by the project, shall consider each 

14 of the following: 

15 (1) The value to the Federal Government of the 

16 outcome expected to be achieved if the outcomes 

17 specified in the contract are met at the appropriate 

18 quantitative levels. 

19 (2) The ability of the State or local government 

20 in collaboration with the intermediary and the serv21 ice providers to achieve the outcomes at the appro22 priate quantitative levels. 

23 (3) The savings to the Federal Government if 

24 the outcomes specified in the contract are met at the 

25 appropriate quantitative levels. 


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1 (4) The savings to the State and local govern2 ments if the outcomes specified in the contract are 

3 met at the appropriate quantitative levels. 

4 (5) The expected quality of the evaluation that 

5 would be conducted with respect to the contract. 

6 (c) CONTRACT AUTHORITY.— 

7 (1) CONTRACT REQUIREMENTS.—In accordance 

8 with this section, the lead agency, in consultation 

9 with the Council and the head of any Federal agency 

10 administering a similar intervention or serving a 

11 population similar to that served by the project, may 

12 enter into a contract for a social impact bond project 

13 with a State or local government if the lead agency 

14 determines that each of the following requirements 

15 are met: 

16 (A) The State or local government agrees 

17 to achieve an outcome specified in the contract 

18 at the appropriate quantitative level in order to 

19 receive payment. 

20 (B) The Federal payment to the State or 

21 local government for each outcome specified is 

22 less than or equal to the value of the outcome 

23 to the Federal Government over a period not to 

24 exceed 15 years, as determined by the lead 


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1 agency, in consultation with the State or local 

2 government. 

3 (C) The duration of the project does not 

4 exceed 15 years, unless the lead agency grants 

5 an extension pursuant to paragraph (3)(B). 

6 (D) The State or local government has 

7 demonstrated, through the application sub8 mitted under section 402, that, based on prior 

9 rigorous experimental evaluations or rigorous 

10 quasi-experimental studies, the intervention can 

11 be expected to achieve each outcome specified in 

12 the contract at the appropriate quantitative 

13 level. 

14 (E) The State, local government, inter15 mediary, or service provider has experience rais16 ing private or philanthropic capital to fund so17 cial service investments (if applicable to the 

18 project). 

19 (F) The State or local government has 

20 shown that each service provider has experience 

21 delivering the intervention, a similar interven22 tion, or has otherwise demonstrated the exper23 tise necessary to deliver the intervention. 

24 (2) PAYMENT.—The lead agency shall pay the 

25 State or local government only if the independent 


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1 evaluator described in section 405 determines that 

2 the social impact bond project has met the require3 ments specified in the contract and achieved an out4 come specified in the contract. 

5 (3) LIMITATION; OPTIONAL EXTENSION TO

6 ACHIEVE SAVINGS.— 

7 (A) IN GENERAL.—Subject to subpara8 graph (B), the lead agency may not enter into 

9 a contract for a social impact bond project 

10 under paragraph (1) after the date that is 5 

11 years after the date of the enactment of this 

12 Act. 

13 (B) EXTENSION.—If the lead agency de14 termines that a social impact bond project that 

15 has not achieved the Federal savings it was 

16 projected to achieve would achieve such savings 

17 if the project were continued for a period that 

18 is not greater than 5 years, the lead agency 

19 may extend the project for not more than 5 ad20 ditional years without requiring the State or 

21 local government conducting the project to re22 submit an application in accordance with sec23 tion 402. 

24 (d) NOTICE OF CONTRACT AWARD.—Not later than 

25 30 days after entering into a contract under this section, 


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1 the lead agency shall publish a notice in the Federal Reg2 ister that includes, with regard to such contract, the fol3 lowing: 

4 (1) The outcome goals of the social impact bond 

5 project. 

6 (2) A description of each intervention in the 

7 project. 

8 (3) The target population that will be served by 

9 the project. 

10 (4) The expected social benefits to participants 

11 who receive the intervention and others who may be 

12 impacted. 

13 (5) The detailed roles, responsibilities, and pur14 poses of each Federal, State, or local government en15 tity, intermediary, service provider, independent 

16 evaluator, investor, or other stakeholder. 

17 (6) The payment terms, the methodology used 

18 to calculate outcome payments, the payment sched19 ule, and performance thresholds. 

20 (7) The project budget. 

21 (8) The project timeline. 

22 (9) The project eligibility criteria. 

23 (10) The evaluation design. 

24 (11) The metrics that will be used to determine 

25 whether the outcomes have been achieved and how 


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1 these metrics will be measured, including scenarios 

2 when only partial outcomes have been achieved. 

3 (12) The estimate prepared by the State or 

4 local government of the savings to the Federal, 

5 State, and local government, on a program-by-pro6 gram basis and in the aggregate, if the contract is 

7 entered into and implemented and the outcomes are 

8 achieved. 

9 SEC. 404. FEASIBILITY STUDY FUNDING. 

10 (a) REQUESTS FOR FUNDING FOR FEASIBILITY

11 STUDIES.—The lead agency shall reserve a portion of the 

12 funding provided in section 408 to assist States or local 

13 governments in developing feasibility studies required by 

14 section 402(c). To be eligible to receive funding to assist 

15 with completing a feasibility study, a State or local govern16 ment shall submit an application for feasibility study fund17 ing containing the following information: 

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

19 social impact bond project. 

20 (2) A description of the intervention, including 

21 anticipated program design, target population, an 

22 estimate regarding the number of individuals to be 

23 served, and setting for the intervention. 

24 (3) Evidence to support the likelihood that such 

25 intervention will produce the desired outcome. 


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1 (4) The expected social benefits to participants 

2 who receive the intervention and others who may be 

3 impacted. 

4 (5) Estimated costs to conduct the project. 

5 (6) Estimates of Federal, State, and local gov6 ernment savings and other savings if the project is 

7 implemented and the outcomes are achieved at the 

8 appropriate quantitative levels. 

9 (7) An estimated timeline for implementation 

10 and completion of the project, which shall not exceed 

11 15 years. 

12 (8) With respect to a project for which the 

13 State or local government selects an intermediary to 

14 operate the project, any partnerships needed to suc15 cessfully execute the project, the ability of the inter16 mediary to foster such partnerships, the identity of 

17 likely partners, and whether commitments to partici18 pate in the project have been secured from such 

19 partners. 

20 (9) The expected resources needed to complete 

21 the feasibility study. 

22 (10) An assurance that the services provided by 

23 the State or local government through the project 

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1 vided by the State or local government prior to the 

2 commencement of the project. 

3 (b) FEDERAL SELECTION OF APPLICATIONS FOR

4 FEASIBILITY STUDY.—Not later than 6 months after re5 ceiving an application for feasibility study funding under 

6 subsection (a), the lead agency, in consultation with the 

7 Council and the head of any Federal agency administering 

8 a similar intervention or serving a population similar to 

9 that served by the project, shall select State or local gov10 ernment feasibility study proposals for funding based on 

11 the following: 

12 (1) The likelihood that the proposal will achieve 

13 the desired outcome at the appropriate quantitative 

14 level. 

15 (2) The value of the outcome expected to be 

16 achieved. 

17 (3) The potential savings to the Federal Gov18 ernment if the social impact bond project is success19 ful. 

20 (4) The potential savings to the State and local 

21 governments if the project is successful. 

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

23 after selecting a State or local government for feasibility 

24 study funding under this section, the lead agency shall 

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1 ing why a State or local government was granted feasi2 bility study funding. 

3 (d) FUNDING RESTRICTION.— 

4 (1) FEASIBILITY STUDY RESTRICTION.—The 

5 lead agency may not provide feasibility study fund6 ing under this section for more than 50 percent of 

7 the estimated total cost of the feasibility study re8 ported in the State or local government application 

9 submitted under subsection (a). 

10 (2) AGGREGATE RESTRICTION.—Of the total 

11 amount appropriated under section 408, the lead 

12 agency may not use more than $5,000,000 to pro13 vide feasibility study funding to States or local gov14 ernments under this section. 

15 (e) SUBMISSION OF FEASIBILITY STUDY RE16 QUIRED.—Not later than 6 months after the receipt of 

17 feasibility study funding under this section, a State or 

18 local government receiving such funding shall complete the 

19 feasibility study and submit the study to the Council. 

20 SEC. 405. EVALUATIONS. 

21 (a) CONTRACT AUTHORITY.—For each State or local 

22 government awarded a social impact bond project ap23 proved by the lead agency under this title, the head of 

24 the relevant agency, as determined by the Council, shall 

25 enter into a contract with such State or local government 


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1 to pay, from the amount made available under section 

2 408, for an independent evaluation to determine whether 

3 the State or local government project has met an outcome 

4 specified in the contract at the appropriate quantitative 

5 level in order for the State or local government to receive 

6 outcome payments under this title. 

7 (b) EVALUATOR QUALIFICATIONS.—The head of the 

8 relevant agency may not enter into a contract with a State 

9 or local government unless the head determines that the 

10 entity that will serve as the independent evaluator is inde11 pendent of the other parties to the contract and has dem12 onstrated substantial experience in conducting rigorous 

13 evaluations of program effectiveness including, where 

14 available, well-implemented randomized controlled trials 

15 on the intervention or similar interventions. 

16 (c) METHODOLOGIES TO BE USED.—The evaluation 

17 used to determine whether a State or local government 

18 will receive outcome payments under this title shall use 

19 experimental designs using random assignment or other 

20 research methodologies that allow for the strongest pos21 sible causal inferences when random assignment is not 

22 feasible. 

23 (d) PROGRESS REPORT.— 

24 (1) SUBMISSION OF REPORT.—The independent 

25 evaluator shall— 


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1 (A) not later than two years after a project 

2 has been approved by the lead agency and bian3 nually thereafter until the project is concluded, 

4 submit to the head of the relevant agency and 

5 the Council a written report summarizing the 

6 progress that has been made in achieving each 

7 outcome specified in the contract at the appro8 priate quantitative level; and 

9 (B) at the scheduled time of the first out10 come payment and at the time of each subse11 quent payment, submit to the head of the rel12 evant agency and the Council a written report 

13 that includes the results of the evaluation con14 ducted to determine whether an outcome pay15 ment should be made along with information on 

16 the unique factors that contributed to achieving 

17 or failing to achieve the outcome, the challenges 

18 faced in attempting to achieve the outcome, and 

19 information on the improved future delivery of 

20 this or similar interventions. 

21 (2) SUBMISSION TO CONGRESS.—Not later than 

22 30 days after receipt of the written report pursuant 

23 to paragraph (1)(B), the Council shall submit such 

24 report to each committee of jurisdiction in the 

25 House of Representatives and the Senate. 


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1 (e) FINAL REPORT.— 

2 (1) SUBMISSION OF REPORT.—Within 6 months 

3 after the social impact bond project is completed, the 

4 independent evaluator shall— 

5 (A) evaluate the effects of the activities 

6 undertaken pursuant to the contract with re7 gard to each outcome specified in the contract; 

8 and 

9 (B) submit to the head of the relevant 

10 agency and the Council a written report that in11 cludes the results of the evaluation and the con12 clusion of the evaluator as to whether the State 

13 or local government has fulfilled each obligation 

14 of the contract, along with information on the 

15 unique factors that contributed to the success 

16 or failure of the project, the challenges faced in 

17 attempting to achieve the outcome, and infor18 mation on the improved future delivery of this 

19 or similar interventions. 

20 (2) SUBMISSION TO CONGRESS.—Not later than 

21 30 days after receipt of the written report pursuant 

22 to paragraph (1)(B), the Council shall submit such 

23 report to each committee of jurisdiction in the 

24 House of Representatives and the Senate. 


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1 (f) LIMITATION ON COST OF EVALUATIONS.—Of the 

2 amount made available for social impact bond projects in 

3 section 408, the lead agency may not obligate more than 

4 15 percent to evaluate the implementation and outcomes 

5 of such projects. 

6 SEC. 406. ROLE OF INTERAGENCY COUNCIL ON 

7 MULTIGENERATIONAL POVERTY. 

8 The Council shall— 

9 (1) coordinate the efforts of social impact bond 

10 projects funded by this title; 

11 (2) advise and assist the lead agency in the de12 velopment and implementation of such projects; 

13 (3) advise the lead agency on specific pro14 grammatic and policy matter related to such 

15 projects; 

16 (4) provide subject matter expertise to Council 

17 member agencies with regard to such projects; 

18 (5) ensure that each State or local government 

19 that has entered into a contract with the lead agency 

20 for a social impact bond project under this title and 

21 each evaluator selected by the head of the relevant 

22 agency under section 405 has access to Federal ad23 ministrative data to assist the State or local govern24 ment and the evaluator in evaluating the perform25 ance and outcomes of the project; and 


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1 (6) address issues that will influence the future 

2 of social impact bond projects in the United States. 

3 SEC. 407. AVAILABILITY OF INFORMATION RELATED TO SO4 CIAL IMPACT BOND PROJECTS. 

5 The Council shall make publicly available, on its offi6 cial website, a description of the 2-generation program de7 scribed in this title and information related to the social 

8 impact bond projects conducted under this title, includ9 ing— 

10 (1) a copy of, or method of accessing, each no11 tice published regarding a social impact bond project 

12 pursuant to such title; 

13 (2) for each social impact bond project con14 ducted under such title— 

15 (A) the outcome goals of such project de16 scribed in section 402(b); 

17 (B) a description of each intervention in 

18 such project; 

19 (C) the target population to be served by 

20 such project; 

21 (D) the expected social benefits to partici22 pants who receive intervention in each such 

23 project and other individuals who may be im24 pacted by such intervention; 


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1 (E) the detailed roles, responsibilities, and 

2 purposes of each Federal, State, or local gov3 ernment entity, intermediary, service provider, 

4 independent evaluator, investor, or other stake5 holder; 

6 (F) the payment terms, methodology used 

7 to calculate outcome payments, payment sched8 ule, and performance thresholds; 

9 (G) the project budget; 

10 (H) the project timeline; 

11 (I) the project eligibility criteria; 

12 (J) the evaluation design; 

13 (K) the metrics used to determine whether 

14 the proposed outcomes have been achieved and 

15 how these metrics are measured; 

16 (L) a copy of the progress reports and the 

17 final reports described in section 405 relating to 

18 each social impact bond project; and 

19 (M) an estimate of the savings to Federal, 

20 State, and local governments, on a program-by21 program basis and in the aggregate, resulting 

22 from the successful completion of a social im23 pact bond project. 


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1 SEC. 408. FUNDING. 

2 (a) IN GENERAL.—Out of any money in the Treasury 

3 not otherwise appropriated, there is hereby appropriated 

4 $100,000,000, to remain available until 5 years after the 

5 date specified in section 403(c)(3), to carry out the activi6 ties authorized under this title. 

7 (b) LIMITATION.—Of the amounts made available 

8 under subsection (a), the lead agency may not use more 

9 than $1,000,000 in any fiscal year to support the review, 

10 approval, and oversight of social impact bond projects, in11 cluding activities conducted by— 

12 (1) the Council; and 

13 (2) any other agency consulted by the lead 

14 agency before approving a social impact bond project 

15 under section 403 or awarding funding for a feasi16 bility study under section 404. 

17 SEC. 409. COMMUNITY REINVESTMENT ACT. 

18 Section 804 of the Community Reinvestment Act of 

19 1977 (12 U.S.C. 2903) is amended by adding at the end 

20 the following: 

21 ‘‘(e) SOCIAL IMPACT BOND PROJECTS.—In assessing 

22 and taking into account, under subsection (a), the record 

23 of a financial institution, the appropriate Federal financial 

24 supervisory agency shall consider, as a factor, investments 

25 made by the financial institution in social impact bond 


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1 projects under title IV of the Two-Generation Economic 

2 Empowerment Act of 2016’’. 

Æ 


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