Yesterday afternoon, a bi-partisan group of representatives re-introduced Pay for Success Legislation in the U.S. House of Representatives. Representatives Young (R-IN) and Delaney (D-MD) led this effort in the House, and they were joined by seven other original cosponsors: Reps. Reed (R-NY), Larson (D-CT), Reichert (R-WA), Polis (D-CO), Schock (R-IL), Kennedy (D-MA), and Dold (R-IL). The Bill is H.R. 1336 and is known as the Social Impact Partnerships Act. Its predecessor was H.R. 4885, which was also led by Reps Young and Delaney, and it had a Committee hearing on the legislation last Fall. To learn more about this legislative initiative, see our comments to the record for that hearing. We look forward to the re-introduction of a companion bill in the Senate by Sens. Hatch (R-UT) and Bennet (D-CO).
This legislation would create a fund that federal agencies could use to participate in local governments’ (states, county’s, cities, or tribes) Pay for Success financing (full text of the bill here). Many Pay for Success contracts provide significant savings to federal agencies that cannot, in turn, help pay for the costs. H.R. 1336 would allow them to engage more directly in those deals, making more of them viable and improving outcomes with accountability.
ICS believes Pay for Success (or Pay for Performance) financing can help us achieve our shared vision of a world where government supports robust early childhood programs that are accountable for the results they produce for children and communities and where the public, private, and nonprofit sectors work together transparently to maximize resources and outcomes for children. We thank Representatives Young and Delaney and Senators Hatch and Bennett for their bipartisan legislative leadership in advancing PFS at the Federal level, and we look forward to thoughtfully advancing the use of these mechanisms across the United States.