A new framework would be established to support and reward states, municipalities, nonprofits and private-sector partnerships that successfully address social and public health challenges under new legislation led by U.S. Sens. Todd Young (R-IN) and Susan Collins (R-ME).
Under the Social Impact Partnerships to Pay for Results Act, the federal government would issue requests for proposals to state and local governments to accomplish goals like increasing work and earnings for the long-term unemployed, reducing dependence on welfare, and preventing child abuse and neglect.
Then, state and local governments would define the desired outcomes of programs geared to achieve those goals, conduct feasibility studies to demonstrate the capacity of social service partners to operate programs, and undergo independent evaluations to track the progress of selected programs.
“Too often, Washington focuses on inputs instead of outcomes,” Young said. “Social impact partnerships are an innovative way to help our most vulnerable populations improve their lives through successfully proven programs — and that do so in a fiscally responsible manner. It’s time we shift the focus to achieving desired outcomes, carefully evaluating our social programs, and only paying for what works.”
Under the bill, which was modeled after the United Kingdom’s Social Impact Bond model, the federal government would pay state or local governments and their partners a predetermined amount when programs achieve desired outcomes. Evaluation reports of social partnerships would be made publicly available so that other groups can apply findings to their own social partnerships.
“We have an obligation to ensure that taxpayer money is used effectively to achieve positive outcomes for those who need assistance,” Collins said. ”Despite our good intentions and the expenditure of trillions of dollars, however, there has been very little progress in reducing poverty. By capitalizing on the innovation and investments made through social impact partnerships, our bipartisan legislation would encourage more innovative, successful approaches to help families attain economic stability and achieve the American dream.”
The legislation would set aside $300 million to make payments to states that achieve desired positive outcomes.
U.S. Sens. Cory Booker (D-NJ) and Michael Bennet (D-CO) introduced the bipartisan bill with Young and Collins.