SIPPRA: The Social Impact Partnerships to Pay for Results Act

UPDATE: November 2019

 

  • Upcoming opportunity for feasibility funding expected in early 2020: The legislation indicates that up to $10 million will be available to support state and local governments that want to pursue a feasibility study. We expect a Request for Proposal to be released by the U.S. Treasury in early 2020. Please contact us if you would like to learn more about working together on an application.
  • Social Finance supported five of the eight finalist applications: At a public meeting on Mon., Oct. 28, the Commission on Social Impact Partnerships recommended eight applications (listed below), out of 21 eligible submissions to the Secretary of the Treasury for SIPPRA outcomes funding. These finalists include five applications supported by Social Finance, marked below in bold, where we will serve as the project intermediary:
    1. Anchorage, Alaska: Municipality of Anchorage — Permanent Supportive Housing
    2. Denver: City and County of Denver, — Housing to Health
    3. Indiana: Indiana State Department of Health — Nurse-Family Partnership
    4. New York City: NYC Mayor’s Office of Criminal Justice — Cure Violence
    5. New York State: State of New York Energy Research and Development Authority — NY Clean Energy Project
    6. Oklahoma: Oklahoma Office of Management & Enterprise Services — Women in Recovery
    7. Spartanburg, South Carolina: City of Spartanburg — Hello Family Project
    8. Ventura, California: County of Ventura — Venture Home

We expect the SIPPRA funding announcement to arrive in late November 2019. In the meantime, you can learn more about each of the finalist applications here.


SIPPRA OVERVIEW

 

Social Finance worked closely with several government partners to submit applications for the initial round of SIPPRA funding. We expect the opportunity for Pay for Success feasibility funding to be announced later in 2019. Email us if you’re interested in learning more.

The Social Impact Partnerships to Pay for Results Act (SIPPRA) was enacted as part of the Bipartisan Budget Bill of 2018. SIPPRA appropriates $100 million to support the launch of state and local Pay for Success (PFS) initiatives over a 10-year period. It is an opportunity for state and local governments to leverage federal funding to tangibly advance their policy objectives, deliver measurable results for individuals and communities in need, and catalyze the incorporation of outcomes-driven practices into funding and contracting decisions.

Download our SIPPRA fact sheet for more information.


$75 MILLION

The majority of Results Act funds has been allocated to support outcome payments.

 

$15 MILLION

Up to $15 M of Results Act funds has been allocated to support evaluation costs for Pay for Success projects.

 

$10 MILLION

Another $10 M of Results Act funds is dedicated to supporting Pay for Success feasibility, though Results Acts support can only account for 50% of feasibility funding.

Outcomes and Evaluation Funding Round

 

Outcomes and Evaluation Funding Round (Passed)

Applications Submitted May 2019 (Selection by November 2019)

$66.3M FOR OUTCOMES PAYMENTS

$9.9M FOR EVALUATION COSTS

Feasibility Funding Round

 

$10M FOR FEASIBILITY

 

NOFA expected in early 2020.

Summary of Requirements

SIPPRA outlines the following requirements for state or local government applicants to access feasibility study funding:

  • Submission of a Feasibility Study Applications (FSA), addressing the following:
      • Description of outcomes goals.
      • Description of the intervention, including the anticipated program design, target population, estimated regarding the number of individuals to be served, and setting for the intervention.
      • Evidence to support the likelihood that the intervention will produce the desired outcomes.
      • Description of the potential metrics.
      • Expected social benefits to participants (and other who may be affected).
      • Estimated project costs.
      • Estimated of federal, state, and local government savings (and other savings) if the project is implemented and outcomes are achieved as a result of each intervention.
      • Estimated timeline for implementation and completion (shall not exceed 10 years).
      • If an intermediary is used, the partnerships needed to successfully execute the project and the ability of the intermediary to foster such collaboration.
      • Expected resources needed to complete the feasibility study.

 

  •  State or local government will provide 50% of the estimated total cost of the feasibility study.
  • Completion and submission of the feasibility study to the Federal Interagency Council on Social Impact Partnerships within nine months of receiving funding.

SIPPRA Outcomes

The legislation outlines 20 priority outcomes across a spectrum of focus areas and target populations, including workforce development, health, education, criminal justice, veteran employment and well-being, and children and families. In fact, half of the outcomes funding granted under SIPPRA must be used for initiatives that directly benefit children.

Children and Families

  • Reducing teen and unplanned pregnancies.
  • Improving birth outcomes and early childhood health and development among low-income families and individuals.
  • Increasing the proportion of children living in two-parent families.
  • Reducing incidences and adverse consequences of child abuse and neglect.
  • Reducing the number of youth in foster care.
  • Reducing the number of children and youth in foster care residing in group hopes.
  • Reducing the number of children returning to foster care.

Workforce

  • Increasing work and earnings by individuals who are unemployed for six or more consecutive months.
  • Increasing employment and earnings of individuals between 16-25 years of age.
  • Increasing employment among individuals receiving Federal disability benefits.
  • Reducing the dependence of low-income families on Federal means-tested benefits.
  • Improving the financial stability of low-income families.
  • Increasing the independence and employability of individuals who are disabled.

Health

  • Reducing rates of asthma, diabetes, or other preventable diseases among low-income families and individuals to reduce the utilization of emergency and other high-cost care.
  • Improving the health and well-being of those with mental, emotional, or behavioral health needs.

Education

  • Improving rates of high school graduation.
  • Improving educational outcomes of special-needs or low-income children.

Other

  • Criminal Justice: Reducing recidivism among juvenile offenders or high-risk populations.
  • Homelessness: Reducing the rate of homelessness among our most vulnerable populations.
  • Veterans: Improving the employment and well-being of returning U.S. military members
  • Other measurable outcomes defined by state/local government resulting in positive social outcomes and federal savings.

Sample PFS Design Option templates related to these outcomes can be found below under SIPPRA Resources.


SIPPRA Resources

 

Please see below for resources for state and local governments interested in learning more about the opportunity to access SIPPRA funding.

SIPPRA Facts

Treasury Resources

Blogs and Webinars


Application Support

 

Social Finance has conducted 75+ feasibility studies across all issue areas identified in SIPPRA. We successfully supported government applicants during the first round of SIPPRA funding, with five government partners selected as finalists by the Results Act Commission. This positions us well to support governments to assess whether PFS is an appropriate tool to advance policy objectives, develop a PFS project design, and support strong applications to Treasury for SIPPRA feasibility funding.

Contact us for more information.


What is Pay for Success?

Pay for Success aims to measurably improve the lives of people most in need by driving resources toward better, more effective programs.

At its core, Pay for Success is a public-private partnership which funds effective social services through a performance-based contract. Pay for Success projects enable federal, state, and local governments to partner with high-performing service providers by tapping private investments to expand effective programs.

If, following an independent evaluation, the program achieves predetermined outcomes that benefit society and generate value for government, then government will make outcomes payments to investors. However, the government pays only at the level of outcomes achieved.

Learn more about our work building Pay for Success projects across the country.

Spotlight: Children and Families

Decades of research has demonstrated the importance of stable home and family environments for healthy physical, cognitive, and social and emotional child development. Supporting parental mental and physical health and economic stability will help strengthen families and give children a better start from the very beginning.

Connecticut Family Stability Pay for Success Project

South Carolina Nurse-Family-Partnership Pay for Success Project

Blog: Pay for Success in Education

Have questions on the Results Act?

Contact us at SIPPRA@socialfinance.org, or at (617) 939-9900.

A Landmark Moment for Pay for Success

“SIPPRA represents an enormous opportunity to more deeply embed Pay for Success in our governmental infrastructure, better providing critical services to those in need and accelerating systems-level change.”

 – Tracy Palandjian and Matt Bannick

Our CEO, Tracy Palandjian, and Managing Director at Omidyar Network, Matt Bannick, wrote a blog about the historic importance of the Social Impact Partnerships Pay for Results Act and the opportunity it presents to nurture a performance-based mindset in state and local governments nationwide. Read more in A Landmark Moment for Pay for Success.


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