This week, the President met with his Cabinet and other senior officials to lay out his vision for building a smarter, more effective government. The President challenged his Administration to build on the progress made over the first term and improve government even further.
To help meet that challenge, the White House gathered a diverse array of leaders from the private sector, nonprofits, philanthropy, academia, and federal, state and local government to advance one of the ways that this Administration is thinking outside the box – “Pay for Success.”
Pay for Success offers innovative ways for the government to partner with philanthropic and private investors to fund proven and promising practices, significantly enhancing the return on taxpayer investments. Under this model, these organizations provide the up-front capital for social services with a strong evidence base that, when successful, achieve measurable outcomes that improve the lives of families and individuals and reduce their need for future services. Government pays when these measurable results are achieved.
For example, the Department of Labor has launched a Pay for Success competition through the Workforce Innovation Fund designed to model new and more effective strategies for delivering workforce development and preventive social services that cut across existing program siloes, increase job placement and improve job retention.
Fonte: White House