Included in the recently passed Bipartisan Budget Act of 2018 was the Social Impact Partnerships to Pay for Results Act (SIPPRA). This legislation is the result of more than five years’ worth of efforts by bipartisan lawmakers to create a standing pool of capital to support outcomes based financing. It builds on the work and learning of the Social Innovation Fund, state level pay for success projects, and the global movement to create social impact bonds. It was also highlighted as a priority in the National Advisory Board on Impact Investing’s report, Private Capital for Public Good.
At the U.S. Impact Investing Alliance, we have been following this bill closely as we know it is a topic of interest to many of our members. The hope is that by creating this new federal resource to support evidence based policies, states and localities will be encouraged to think about how this type of program can improve outcomes for their communities in need. By supporting programs traditionally funded across numerous federal departments and agencies, it looks to embed evidence based practices throughout the federal government.
The enacted legislation provides for a $92 million fund to be housed at the Department of Treasury. It highlights a wide range of outcomes eligible for the program, including improved child and maternal health, reduced homelessness, lowered rates of recidivism and increased youth employment, among others. The key criteria is that outcomes must “result in social benefit and Federal, State, or Local savings.” The Treasury is instructed to publish a request for proposals from states and localities within the next year.
Stay tuned for updates.