August 7, 2014Policy Report

Case Study: Bipartisan Congressional Bills Prioritize “Social Impact Bonds/ Pay for Performance”

Federal/ 2014/


This summer, a bipartisan, bicameral group of federal elected officials introduced the following two pieces of legislation that would help states and local governments improve outcomes for young people, their families, and communities by driving public and private resources toward programs that demonstrate success:

On June 18, 2014, U.S. Representatives Todd Young (R-IN) and John Delaney (D-MD) — along with seven other bipartisan cosponsors — introduced the Social Impact Bond Act (H.R. 4885). This bill would empower cities and states to scale-up evidence-based interventions. Because social impact bonds are focused on achieving results, public funds are only used when desired outcomes are met.

You can find more information about this House bill, including Results for America’s statement of support for it, here.

On July 30, 2014, U.S. Senators Michael Bennet (D-CO) and Orrin Hatch (R-UT) introduced the Pay-For-Performance Act (S. 2691), a bill that also aims to achieve better outcomes for social service program beneficiaries and taxpayers alike. This legislation, which is a companion bill to H.R. 4885, would also direct public and private resources to states and local communities to support innovative public-private partnerships to tackle big social challenges, while ensuring a smarter, more efficient use of tax dollars.

You can find more information about this Senate bill, including Results for America’s statement of support for it, here.

The Obama administration has also made Pay for Success a priority. In March the Administration released its FY15 budget request, which calls for up to $382 million for Pay for Success initiatives across six federal departments and agencies. The administration began its efforts in this area in FY12. You can find more information on Administration efforts here.