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On March 4, 2015, Rep. Todd Young and John Delaney—along with a bipartisan group of co-sponsors—introduced H.R. 1336, the Social Impact Partnership Act, legislation utilizing social impact partnerships in order to improve social and public health outcomes, save taxpayer resources, and unleash non-governmental investment capital to help at-risk Americans.  Senator Orrin G. Hatch, Chairman of the Senate Finance Committee, and Senator Michael Bennett also plan to introduce companion legislation.  The Social Impact Partnership Act empowers states, nonprofits, and the private sector to scale up evidence-based social and public health interventions to address some of our nation’s seemingly intractable and most pressing social challenges.  Already in widespread use in the United Kingdom (where they are called social impact bonds), thus far the approach has only been utilized on a very limited scale in the United States. The Young-Delaney legislation, which was first introduced in the 113th Congress, is the first detailed proposal to adapt the social impact bond model for broad use at the federal level, and the first proposal to incentivize the realization of savings across multiple layers of government (i.e., federal, state, and local).

This legislation would foster the creation of public-private partnerships that harness philanthropic and other private-sector investments to scale up scientifically-proven social and public health programs—programs which are already being successfully implemented by non-profits, charitable organizations and municipal governments across the United States.  Because social impact partnerships are focused on achieving results, government money is only paid out to investors when desired outcomes are met.  In essence, they bring pay-for-performance to the social and public health spheres, allowing the federal government to improve the impact and effectiveness of vital governmental services.

Social impact partnerships have the potential to transform our nation's social safety net, from increasing adoption rates, to increasing the work and earnings of the long-term unemployed, to reducing the number of low birth-weight babies.  On the links above, you will find additional information and resources related to this proposal.  You can also read the press release announcing the introduction of the bill by clicking here.