American Rescue Plan: How Outcomes-Based Practices Can Maximize Community Impact

Cities, counties, and states will receive billions of dollars in funding through the American Rescue Plan Act of 2021 (ARP). The ARP provides substantial financial support for governments to fund services across health care, education, housing, and workforce development. But in advance of spending these funds, governments have an opportunity to make a few simple funding and operational decisions to focus on outcomes now in order to lay a foundation for better results later.

This memo provides examples of how governments can swiftly distribute ARP funds while ensuring that funding choices are tied to measurable and meaningful impact. We outline three specific strategies governments can use to maximize the impact of their ARP funds: develop outcomes scorecards, implement Active Performance Management strategies, and create Pay It Forward Funds. The memo also identifies which sections of the ARP may best support these outcomes-oriented initiatives.

Social Finance is eager to speak with jurisdictions about their specific goals and discuss tailored solutions. For more information, please contact Nirav Shah, Vice President at Social Finance.

These strategies will accelerate governments’ use of data, outcomes measurement, and performance management to gain better insights into what works and to inform which programs and policies should be continued once ARP funds have been spent.


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