SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Social Impact Partner-
ships to Pay for Results Act’’. 
SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RE-
SULTS ACT. 
Section 403 of the Social Security Act (42 U.S.C. 
603) is amended by adding at the end the following: 
‘‘(c) SOCIAL IMPACT DEMONSTRATION PROJECTS.— 
‘‘(1) PURPOSES.—The purposes of this sub-
section are the following: 
‘‘(A) To improve the lives of families and 
individuals in need in the United States by 
funding social programs that achieve real re-
sults. 
‘‘(B) To redirect funds away from pro-
grams that, based on objective data, are ineffec-
tive, and into programs that achieve demon-
strable, measurable results. 
‘‘(C) To ensure Federal funds are used ef-
fectively on social services to produce positive 
outcomes for both service recipients and tax-
payers. 
‘‘(D) To establish the use of social impact 
partnerships to address some of our Nation’s 
most pressing problems.
‘‘(E) To facilitate the creation of public- 
private partnerships that bundle philanthropic 
or other private resources with existing public 
spending to scale up effective social interven-
tions already being implemented by private or-
ganizations, nonprofits, charitable organiza-
tions, and State and local governments across 
the country. 
‘‘(F) To bring pay-for-performance to the 
social sector, allowing the United States to im-
prove the impact and effectiveness of vital social 
services programs while redirecting inefficient 
or duplicative spending. 
‘‘(G) To incorporate outcomes measure-
ment and randomized controlled trials or other 
rigorous methodologies for assessing program 
impact. 
‘‘(2) SOCIAL
IMPACT
PARTNERSHIP
APPLICA-
TION.— 
‘‘(A) NOTICE.—Not later than 1 year after 
the date of the enactment of this subsection, 
the Secretary of the Treasury, in consultation 
with the Federal Interagency Council on Social 
Impact Partnerships, shall publish in the Fed-
eral Register a request for proposals from
States or local government for social impact 
partnership projects in accordance with this 
paragraph. 
‘‘(B) REQUIRED
OUTCOMES
FOR
SOCIAL 
IMPACT PARTNERSHIP PROJECT.—To qualify as 
a social impact partnership project under this 
subsection, a project must produce one or more 
measurable, clearly defined outcomes that result 
in social benefit and Federal savings through 
any of the following: 
‘‘(i) Increasing work and earnings by 
individuals who have been unemployed in 
the United States for more than 6 con-
secutive months. 
‘‘(ii) Increasing employment and earn-
ings of individuals who have attained 16 
years of age but not 25 years of age. 
‘‘(iii) Increasing employment among 
individuals receiving Federal disability ben-
efits. 
‘‘(iv) Reducing the dependence of low- 
income families on Federal means-tested 
benefits. 
‘‘(v) Improving rates of high school 
graduation.
‘‘(vi) Reducing teen and unplanned 
pregnancies. 
‘‘(vii) Improving birth outcomes and 
early childhood health and development 
among low-income families and individuals. 
‘‘(viii) Reducing rates of asthma, dia-
betes, or other preventable diseases among 
low-income families and individuals to re-
duce the utilization of emergency and other 
high-cost care. 
‘‘(ix) Increasing the proportion of chil-
dren living in two-parent families. 
‘‘(x) Reducing incidences and adverse 
consequences of child abuse and neglect. 
‘‘(xi) Reducing the number of youth 
in foster care by increasing adoptions, per-
manent guardianship arrangements, reuni-
fication, or placement with a fit and willing 
relative, or by avoiding placing children in 
foster care by ensuring they can be cared 
for safely in their own homes. 
‘‘(xii) Reducing the number of chil-
dren and youth in foster care residing in 
group homes, child care institutions, agen-
cy-operated foster homes, or other non-
family foster homes, unless it is deter-
mined that it is in the interest of the 
child’s long-term health, safety, or psycho-
logical well-being to not be placed in a 
family foster home. 
‘‘(xiii) Reducing the number of chil-
dren returning to foster care. 
‘‘(xiv) Reducing recidivism among ju-
veniles, individuals released from prison, or 
other high-risk populations. 
‘‘(xv) Reducing the rate of homeless-
ness among our most vulnerable popu-
lations. 
‘‘(xvi) Improving the health and well- 
being of those with mental, emotional, and 
behavioral health needs. 
‘‘(xvii) Improving the educational out-
comes of special-needs or low-income chil-
dren. 
‘‘(xviii) Improving the employment 
and well-being of returning United States 
military members. 
‘‘(xix) Increasing the financial sta-
bility of low-income families.
‘‘(xx) Increasing the independence and 
employability of individuals who are phys-
ically or mentally disabled. 
‘‘(xxi) Other measurable outcomes de-
fined by the State or local government that 
result in positive social outcomes and Fed-
eral savings. 
‘‘(C) APPLICATION REQUIRED.—The notice 
described in subparagraph (A) shall require a 
State or local government to submit an applica-
tion for the social impact partnership project 
that addresses the following: 
‘‘(i) The outcome goals of the project. 
‘‘(ii) A description of each interven-
tion in the project and anticipated out-
comes of the intervention. 
‘‘(iii) Rigorous evidence demonstrating 
that the intervention can be expected to 
produce the desired outcomes. 
‘‘(iv) The target population that will 
be served by the project. 
‘‘(v) The expected social benefits to 
participants who receive the intervention 
and others who may be impacted.
‘‘(vi) Projected Federal, State, and 
local government costs and other costs to 
conduct the project. 
‘‘(vii) Projected Federal, State, and 
local government savings and other sav-
ings, including an estimate of the savings 
to the Federal Government, on a program- 
by-program basis and in the aggregate, if 
the project is implemented and the out-
comes are achieved. 
‘‘(viii) If savings resulting from the 
successful completion of the project are es-
timated to accrue to the State or local gov-
ernment, the likelihood of the State or 
local government to realize those savings. 
‘‘(ix) A plan for delivering the inter-
vention through a social impact partner-
ship model. 
‘‘(x) A description of the expertise of 
each service provider that will administer 
the intervention, including a summary of 
the experience of the service provider in 
delivering the proposed intervention or a 
similar intervention, or demonstrating that
the service provider has the expertise nec-
essary to deliver the proposed intervention. 
‘‘(xi) An explanation of the experience 
of the State or local government, the inter-
mediary, or the service provider in raising 
private and philanthropic capital to fund 
social service investments. 
‘‘(xii) The detailed roles and respon-
sibilities of each entity involved in the 
project, including any State or local gov-
ernment entity, intermediary, service pro-
vider, independent evaluator, investor, or 
other stakeholder. 
‘‘(xiii) A summary of the experience of 
the service provider delivering the proposed 
intervention or a similar intervention, or a 
summary demonstrating the service pro-
vider has the expertise necessary to deliver 
the proposed intervention. 
‘‘(xiv) A summary of the unmet need 
in the area where the intervention will be 
delivered or among the target population 
who will receive the intervention. 
‘‘(xv) The proposed payment terms, 
the methodology used to calculate outcome
payments, the payment schedule, and per-
formance thresholds. 
‘‘(xvi) The project budget. 
‘‘(xvii) The project timeline. 
‘‘(xviii) The criteria used to determine 
the eligibility of an individual for the 
project, including how selected populations 
will be identified, how they will be referred 
to the project, and how they will be en-
rolled in the project. 
‘‘(xix) The evaluation design. 
‘‘(xx) The metrics that will be used to 
determine whether the outcomes have been 
achieved and how the metrics will be meas-
ured. 
‘‘(xxi) An explanation of how the 
metrics used to determine whether the out-
comes have been achieved are independent, 
objective indicators of impact and are not 
subject to manipulation by the service pro-
vider, intermediary, or investor. 
‘‘(xxii) A summary explaining the 
independence of the evaluator from the 
other entities involved in the project and 
the evaluator’s experience in conducting
rigorous evaluations of program effective-
ness including, where available, well-imple-
mented randomized controlled trials on the 
intervention or similar interventions. 
‘‘(xxiii) The capacity of the service 
provider to deliver the intervention to the 
number of participants the State or local 
government proposes to serve in the 
project. 
‘‘(D) PROJECT
INTERMEDIARY
INFORMA-
TION REQUIRED.—The application described in 
subparagraph (C) shall also contain the fol-
lowing information about any intermediary for 
the social impact partnership project (whether 
an intermediary is a service provider or other 
entity): 
‘‘(i) Experience and capacity for pro-
viding or facilitating the provision of the 
type of intervention proposed. 
‘‘(ii) The mission and goals. 
‘‘(iii) Information on whether the 
intermediary is already working with serv-
ice providers that provide this intervention 
or an explanation of the capacity of the
intermediary to begin working with service 
providers to provide the intervention. 
‘‘(iv) Experience working in a collabo-
rative environment across government and 
nongovernmental entities. 
‘‘(v) Previous experience collaborating 
with public or private entities to implement 
evidence-based programs. 
‘‘(vi) Ability to raise or provide fund-
ing to cover operating costs (if applicable 
to the project). 
‘‘(vii) Capacity and infrastructure to 
track outcomes and measure results, in-
cluding— 
‘‘(I) capacity to track and ana-
lyze program performance and assess 
program impact; and 
‘‘(II) experience with perform-
ance-based awards or performance- 
based 
contracting 
and 
achieving 
project milestones and targets. 
‘‘(viii) Role in delivering the interven-
tion. 
‘‘(ix) How the intermediary would 
monitor program success, including a de-
scription of the interim benchmarks and 
outcome measures. 
‘‘(E) 
FEASIBILITY
STUDIES
FUNDED 
THROUGH
OTHER
SOURCES.—The notice de-
scribed in subparagraph (A) shall permit a 
State or local government to submit an applica-
tion for social impact partnership funding that 
contains information from a feasibility study 
developed for purposes other than applying for 
funding under this subsection. 
‘‘(3) AWARDING SOCIAL IMPACT PARTNERSHIP 
AGREEMENTS.— 
‘‘(A) TIMELINE
IN
AWARDING
AGREE-
MENT.—Not later than 6 months after receiving 
an application in accordance with paragraph 
(2), the Secretary, in consultation with the Fed-
eral Interagency Council on Social Impact Part-
nerships, shall determine whether to enter into 
an agreement for a social impact partnership 
project with a State or local government. 
‘‘(B) 
CONSIDERATIONS
IN
AWARDING 
AGREEMENT.—In determining whether to enter 
into an agreement for a social impact partner-
ship project (the application for which was sub-
mitted under paragraph (2)) the Secretary, in
consultation with the Federal Interagency 
Council on Social Impact Partnerships (estab-
lished by paragraph (6)) and the head of any 
Federal agency administering a similar inter-
vention or serving a population similar to that 
served by the project, shall consider each of the 
following: 
‘‘(i) The recommendations made by 
the Commission on Social Impact Partner-
ships. 
‘‘(ii) The value to the Federal Govern-
ment of the outcomes expected to be 
achieved if the outcomes specified in the 
agreement are achieved. 
‘‘(iii) The likelihood, based on evi-
dence provided in the application and other 
evidence, that the State or local govern-
ment in collaboration with the inter-
mediary and the service providers will 
achieve the outcomes. 
‘‘(iv) The savings to the Federal Gov-
ernment if the outcomes specified in the 
agreement are achieved.
‘‘(v) The savings to the State and 
local governments if the outcomes specified 
in the agreement are achieved. 
‘‘(vi) The expected quality of the eval-
uation that would be conducted with re-
spect to the agreement. 
‘‘(C) AGREEMENT AUTHORITY.— 
‘‘(i) AGREEMENT
REQUIREMENTS.— 
In accordance with this paragraph, the 
Secretary, in consultation with the Federal 
Interagency Council on Social Impact 
Partnerships and the head of any Federal 
agency administering a similar intervention 
or serving a population similar to that 
served by the project, may enter into an 
agreement for a social impact partnership 
project with a State or local government if 
the Secretary, in consultation with the 
Federal Interagency Council on Social Im-
pact Partnerships, determines that each of 
the following requirements are met: 
‘‘(I) The State or local govern-
ment agrees to achieve one or more 
outcomes specified in the agreement 
in order to receive payment.
‘‘(II) The Federal payment to the 
State or local government for each 
outcome specified is less than or equal 
to the value of the outcome to the 
Federal Government over a period not 
to exceed 10 years, as determined by 
the Secretary, in consultation with the 
State or local government. 
‘‘(III) 
The 
duration 
of 
the 
project does not exceed 10 years. 
‘‘(IV) The State or local govern-
ment has demonstrated, through the 
application submitted under para-
graph (2), that, based on prior rig-
orous experimental evaluations or rig-
orous quasi-experimental studies, the 
intervention 
can 
be 
expected 
to 
achieve each outcome specified in the 
agreement. 
‘‘(V) The State, local govern-
ment, intermediary, or service pro-
vider has experience raising private or 
philanthropic capital to fund social 
service investments (if applicable to 
the project).
‘‘(VI) The State or local govern-
ment has shown that each service pro-
vider has experience delivering the 
intervention, a similar intervention, or 
has otherwise demonstrated the exper-
tise necessary to deliver the interven-
tion. 
‘‘(ii) PAYMENT.—The Secretary shall 
pay the State or local government only if 
the independent evaluator described in 
paragraph (5) determines that the social 
impact partnership project has met the re-
quirements specified in the agreement and 
achieved an outcome specified in the agree-
ment. 
‘‘(D) NOTICE OF AGREEMENT AWARD.— 
Not later than 30 days after entering into an 
agreement under this paragraph, the Secretary 
shall publish a notice in the Federal Register 
that includes, with regard to the agreement, the 
following: 
‘‘(i) The outcome goals of the social 
impact partnership project. 
‘‘(ii) A description of each interven-
tion in the project.
‘‘(iii) The target population that will 
be served by the project. 
‘‘(iv) The expected social benefits to 
participants who receive the intervention 
and others who may be impacted. 
‘‘(v) The detailed roles, responsibil-
ities, and purposes of each Federal, State, 
or local government entity, intermediary, 
service provider, independent evaluator, in-
vestor, or other stakeholder. 
‘‘(vi) The payment terms, the method-
ology used to calculate outcome payments, 
the payment schedule, and performance 
thresholds. 
‘‘(vii) The project budget. 
‘‘(viii) The project timeline. 
‘‘(ix) The project eligibility criteria. 
‘‘(x) The evaluation design. 
‘‘(xi) The metrics that will be used to 
determine whether the outcomes have been 
achieved and how these metrics will be 
measured. 
‘‘(xii) The estimate of the savings to 
the Federal, State, and local government, 
on a program-by-program basis and in the
aggregate, if the agreement is entered into 
and implemented and the outcomes are 
achieved. 
‘‘(E) AUTHORITY TO TRANSFER ADMINIS-
TRATION OF AGREEMENT.—The Secretary may 
transfer to the head of another Federal agency 
the authority to administer (including making 
payments under) an agreement entered into 
under subparagraph (C), and any funds nec-
essary to do so. 
‘‘(F) REQUIREMENT ON FUNDING USED TO 
BENEFIT CHILDREN.—Not less than 50 percent 
of all Federal payments made to carry out 
agreements under this paragraph shall be used 
for initiatives that directly benefit children. 
‘‘(4) FEASIBILITY STUDY FUNDING.— 
‘‘(A) REQUESTS FOR FUNDING FOR FEASI-
BILITY STUDIES.—The Secretary shall reserve a 
portion of the amount reserved to carry out this 
subsection to assist States or local governments 
in developing feasibility studies to apply for so-
cial impact partnership funding under para-
graph (2). To be eligible to receive funding to 
assist with completing a feasibility study, a 
State or local government shall submit an appli-