pay for success initiative

(40) Pay for success initiative The term “pay for success initiative” means a performance-based grant, contract, or cooperative agreement awarded by a public entity in which a commitment is made to pay for improved outcomes that result in social benefit and direct cost savings or cost avoidance to the public sector. Such an initiative shall include— (A) a feasibility study on the initiative describing how the proposed intervention is based on evidence of effectiveness; (B) a rigorous, third-party evaluation that uses experimental or quasi-experimental design or other research methodologies that allow for the strongest possible causal inferences to determine whether the initiative has met its proposed outcomes; (C) an annual, publicly available report on the progress of the initiative; and (D) a requirement that payments are made to the recipient of a grant, contract, or cooperative agreement only when agreed upon outcomes are achieved, except that the entity may make payments to the third party conducting the evaluation described in subparagraph (B).


20 USC § 7801(40)

Scoping language

in this chapter
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