Rep. Tim Griffin (R-Ark.) became an original co-sponsor of legislation on Thursday that would establish public-private partnerships that lead to private sector investments in philanthropic causes and public health programs.
Reps. Todd Young (R-Ind.) and John Delaney (D-Md.) introduced the Social Impact Bond Act, which would direct the federal government to establish goals for social challenges. Local and state governments would then submit proposals to work toward the goals.
“By establishing end goals and using proven results to evaluate social and public health programs, this bipartisan and innovative bill enables public and private sector collaboration to improve these programs, which will better serve Americans in need while respecting hardworking taxpayer dollars,” Griffin, a member of the House Ways and Means Committee, said. “I recently met with UK officials about the successful use of social impact bonds in the United Kingdom and how real savings can be achieved if we implement them at the federal level here in America.”
Under the program, private sector investors would provide the capital required to start up or expand programs. The investors would be repaid with a small return if an independent evaluator were to determine the desired outcomes were met.
Social impact bonds have been used extensively in the United Kingdom, but the legislation introduced by Young and Delaney was the first proposal that would widely use the system at the federal level in the United States.