Social Impact Bonds
On June 18, 2014, Rep. Todd Young and John Delaney—along with a bipartisan group of seven other co-sponsors—introduced H.R. 4885, the Social Impact Bond Act, legislation utilizing social impact bonds (SIBs) in order to improve social and public health outcomes, save taxpayer resources, and unleash non-governmental investment capital to help at-risk Americans. The Social Impact Bond 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, thus far SIBs have only been utilized on a very limited scale in the United States. The Young-Delaney legislation is the first detailed proposal to adapt the SIB 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 bonds are focused on achieving results, government money is only paid out to investors when desired outcomes are met. In essence, SIBs 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.
SIBs 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.
- Todd Young - Social Impact Bond One Pager (07/15/14 12:55 PM PST)
- Americans for Community Development Letter (07/07/14 12:34 PM PST)
- America Forward Coalition Letter (06/27/14 11:28 AM PST)
- America Forward Coalition Members (06/27/14 11:27 AM PST)
- Coalition for Evidence-Based Policy (06/19/14 05:20 PM PST)
- Todd Young - Social Impact Bond Section-by-Section (06/18/14 11:15 AM PST)
- Social Impact Bond Act (06/18/14 11:11 AM PST)
- Todd Young - Social Impact Bond Draft Legislation (04/29/14 09:46 AM PST)