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On November 15, 2023, the U.S. Department of the Treasury (Treasury) released the second Notice of Funding Availability (NOFA) for the $100 million Social Impact Partnerships to Pay for Results (SIPPRA) program. Applications are due by April 15, 2024 from state and local governments, who can partner with private intermediaries and providers on a range of issues.

Building on a decade-plus of learning in the field, SIPPRA represents a transformational shift in how the federal government can invest in locally-driven, cost-effective programs under an innovative financing structure that rewards measurable improvements in people’s lives. We encourage a range of diverse social innovation organizations to apply.

Changes in the Second NOFA

The second SIPPRA NOFA includes numerous, significant improvements to the first NOFA (released in 2019) that better realize the program’s purpose and potential, and are aligned with recommendations from the America Forward Coalition and other stakeholders. Critically, Treasury has now recognized that Congress designed SIPPRA as a demonstration program intended to set the stage for further expansion of outcomes-based financing strategies across federal funding streams, not simply another grants program.

In the new grant application, Treasury completely changed how it calculated “value” to determine project payments; incorporated more flexible, accessible evaluation requirements; realized it could offer a longer “runway” for projects by using administrative flexible; and substantially expanded guidance for applicants. Treasury is also now prioritizing projects that meaningfully engage the targeted population and community, as well as those that serve diverse populations and grantees as well as advance racial equity. The changes in the new application will meaningfully advance equity and impact in the next round of SIPPRA grants. 

Background

In February 2018, Congress created SIPPRA as part of the Bipartisan Budget Act of 2018. SIPPRA established a $100 million demonstration fund to support state and local pay-for-success projects under the administration of Treasury. 

Following an extended, challenging review process, Treasury made the first four SIPPRA awards in 2021 (following the first SIPPRA NOFA’s release in 2019). America Forward Coalition members including Social Finance, Third Sector Capital Partners, and the Corporation for Supportive Housing have each contributed to the success of one or more of the following SIPPRA-supported projects:

• $8.2 million for a project led by the New York State Energy Research and Development Authority (NYSERDA) to provide clean energy job training to unemployed and low-wage workers in order to increase participants’ wages.
• $6.3 million for a project led by the City and County of Denver, Colorado for its Housing to Health program that provides permanent supportive housing designed to reduce homelessness and increase housing stability.
• $3.9 million for a project with the State of Oklahoma to support a Women in Recovery Program providing alternatives to incarceration for women with substance abuse disorders.
• $20.5 million for a project with the New York City Mayor’s Office of Criminal Justice to support efforts to reduce gun violence among youth.

The America Forward Coalition has been instrumental in the creation and implementation of SIPPRA since before the bill’s introduction in 2018. America Forward made significant recommendations to Treasury in 2022 to improve implementation and better guide Treasury on how to evaluate, select, and fund projects more effectively, seamlessly, and equitably. 

We’re excited for the new SIPPRA NOFA to set the stage for expanding evidence-based and pay-for-success strategies across federal financing, and we look forward to continuing our advocacy through the implementation of this second round of funding. 

We also welcome input and questions about SIPPRA as this second round opens. Please reach out to Anthony Covell (anthony_covell@newprofit.org).