---
kind: "section"
citation: "42 U.S.C. § 1397n–1"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1397n–1"
heading: "Social impact partnership application"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1397n-1"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter XX — Block Grants and Programs for Social Services and Elder Justice"
  - "Division C — Social Impact Demonstration Projects"
---

# §1397n–1. Social impact partnership application

- (a) **Notice—** Not later than 1 year after February 9, 2018, the [Secretary](/usc/42/1301.md?p=a-6) of the Treasury, in consultation with the Federal Interagency Council on [Social](/usc/42/1397j.md?p=20) Impact Partnerships, shall publish in the Federal Register a request for proposals from [States](/usc/42/619.md?p=5) or local governments for [social impact partnership projects](/usc/42/1397n–12.md?p=4) in accordance with this section.
- (b) **Required outcomes for social impact partnership project—** To qualify as a [social impact partnership project](/usc/42/1397n–12.md?p=4) under this division, a [project](/usc/42/13641.md?p=2) must produce one or more measurable, clearly defined outcomes that result in [social](/usc/42/1397j.md?p=20) benefit and Federal, [State](/usc/42/619.md?p=5), or local savings through any of the following:
  - (1) Increasing work and earnings by individuals in the [United States](/usc/42/1301.md?p=a-2) who are unemployed for more than 6 consecutive months.
  - (2) Increasing employment and earnings of individuals who have attained 16 years of age but not 25 years of age.
  - (3) Increasing employment among individuals receiving Federal disability benefits.
  - (4) Reducing the dependence of low-income families on Federal means-tested benefits.
  - (5) Improving rates of high school graduation.
  - (6) Reducing teen and unplanned pregnancies.
  - (7) Improving birth outcomes and early childhood health and development among low-income families and individuals.
  - (8) Reducing rates of asthma, diabetes, or other preventable diseases among low-income families and individuals to reduce the utilization of emergency and other high-cost care.
  - (9) Increasing the proportion of children living in two-parent families.
  - (10) Reducing incidences and adverse consequences of [child](/usc/42/1382c.md?p=c) [abuse](/usc/42/1397j.md?p=1) and [neglect](/usc/42/1397j.md?p=16).
  - (11) Reducing the number of [youth](/usc/42/629a.md?p=a-11) in foster care by increasing adoptions, permanent [guardianship](/usc/42/1397j.md?p=11) arrangements, reunifications, or placements with a fit and willing relative, or by avoiding placing children in foster care by ensuring they can be cared for safely in their own homes.
  - (12) Reducing the number of children and [youth](/usc/42/629a.md?p=a-11) in foster care residing in group homes, [child](/usc/42/1382c.md?p=c) care institutions, [agency](/usc/42/1397n–12.md?p=1)-operated foster homes, or other non-family foster homes, unless it is determined that it is in the interest of the [child](/usc/42/1382c.md?p=c)’s long-term health, safety, or psychological well-being to not be placed in a family foster home.
  - (13) Reducing the number of children returning to foster care.
  - (14) Reducing recidivism among juvenile offenders, individuals released from prison, or other high-risk populations.
  - (15) Reducing the rate of homelessness among our most vulnerable populations.
  - (16) Improving the health and well-being of those with mental, emotional, and behavioral health needs.
  - (17) Improving the educational outcomes of special-needs or low-income children.
  - (18) Improving the employment and well-being of returning [United States](/usc/42/1301.md?p=a-2) military members.
  - (19) Increasing the financial stability of low-income families.
  - (20) Increasing the [independence](/usc/42/242q–4.md?p=1-B) and employability of individuals who are physically or mentally disabled.
  - (21) Other measurable outcomes defined by the [State](/usc/42/619.md?p=5) or local government that result in positive [social](/usc/42/1397j.md?p=20) outcomes and Federal savings.
- (c) **Application required—** The notice described in [subsection (a)](#a) shall require a [State](/usc/42/619.md?p=5) or local government to submit an application for the [social impact partnership project](/usc/42/1397n–12.md?p=4) that addresses the following:
  - (1) The outcome goals of the [project](/usc/42/13641.md?p=2).
  - (2) A description of each [intervention](/usc/42/1397n–12.md?p=2) in the [project](/usc/42/13641.md?p=2) and anticipated outcomes of the [intervention](/usc/42/1397n–12.md?p=2).
  - (3) Rigorous evidence demonstrating that the [intervention](/usc/42/1397n–12.md?p=2) can be expected to produce the desired outcomes.
  - (4) The target population that will be served by the [project](/usc/42/13641.md?p=2).
  - (5) The expected [social](/usc/42/1397j.md?p=20) benefits to participants who receive the [intervention](/usc/42/1397n–12.md?p=2) and others who may be impacted.
  - (6) Projected Federal, [State](/usc/42/619.md?p=5), and local government costs and other costs to conduct the [project](/usc/42/13641.md?p=2).
  - (7) Projected Federal, [State](/usc/42/619.md?p=5), and local government savings and other savings, [including](/usc/42/1301.md?p=b) an estimate of the savings to the Federal Government, on a program-by-program basis and in the aggregate, if the [project](/usc/42/13641.md?p=2) is implemented and the outcomes are achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2).
  - (8) If savings resulting from the successful completion of the [project](/usc/42/13641.md?p=2) are estimated to accrue to the [State](/usc/42/619.md?p=5) or local government, the likelihood of the [State](/usc/42/619.md?p=5) or local government to realize those savings.
  - (9) A plan for delivering the [intervention](/usc/42/1397n–12.md?p=2) through a [social impact partnership model](/usc/42/1397n–12.md?p=5).
  - (10) A description of the expertise of each service provider that will administer the [intervention](/usc/42/1397n–12.md?p=2), [including](/usc/42/1301.md?p=b) a summary of the experience of the service provider in delivering the proposed [intervention](/usc/42/1397n–12.md?p=2) or a similar [intervention](/usc/42/1397n–12.md?p=2), or demonstrating that the service provider has the expertise necessary to deliver the proposed [intervention](/usc/42/1397n–12.md?p=2).
  - (11) An explanation of the experience of the [State](/usc/42/619.md?p=5) or local government, the intermediary, or the service provider in raising private and philanthropic capital to fund [social](/usc/42/1397j.md?p=20) service investments.
  - (12) The detailed roles and responsibilities of each entity involved in the [project](/usc/42/13641.md?p=2), [including](/usc/42/1301.md?p=b) any [State](/usc/42/619.md?p=5) or local government entity, intermediary, service provider, independent evaluator, investor, or other stakeholder.
  - (13) A summary of the experience of the service provider in delivering the proposed [intervention](/usc/42/1397n–12.md?p=2) or a similar [intervention](/usc/42/1397n–12.md?p=2), or a summary demonstrating the service provider has the expertise necessary to deliver the proposed [intervention](/usc/42/1397n–12.md?p=2).
  - (14) A summary of the unmet need in the area where the [intervention](/usc/42/1397n–12.md?p=2) will be delivered or among the target population who will receive the [intervention](/usc/42/1397n–12.md?p=2).
  - (15) The proposed payment terms, the methodology used to calculate outcome payments, the payment schedule, and performance thresholds.
  - (16) The [project](/usc/42/13641.md?p=2) budget.
  - (17) The [project](/usc/42/13641.md?p=2) timeline.
  - (18) The criteria used to determine the eligibility of an individual for the [project](/usc/42/13641.md?p=2), [including](/usc/42/1301.md?p=b) how selected populations will be identified, how they will be referred to the [project](/usc/42/13641.md?p=2), and how they will be enrolled in the [project](/usc/42/13641.md?p=2).
  - (19) The evaluation design.
  - (20) The metrics that will be used in the evaluation to determine whether the outcomes have been achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2) and how the metrics will be measured.
  - (21) An explanation of how the metrics used in the evaluation to determine whether the outcomes achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2) are independent, objective indicators of impact and are not subject to manipulation by the service provider, intermediary, or investor.
  - (22) A summary explaining the [independence](/usc/42/242q–4.md?p=1-B) of the evaluator from the other entities involved in the [project](/usc/42/13641.md?p=2) and the evaluator’s experience in conducting rigorous evaluations of program effectiveness [including](/usc/42/1301.md?p=b), where available, well-implemented randomized controlled trials on the [intervention](/usc/42/1397n–12.md?p=2) or similar [interventions](/usc/42/1397n–12.md?p=2).
  - (23) The capacity of the service provider to deliver the [intervention](/usc/42/1397n–12.md?p=2) to the number of participants the [State](/usc/42/619.md?p=5) or local government proposes to serve in the [project](/usc/42/13641.md?p=2).
  - (24) A description of whether and how the [State](/usc/42/619.md?p=5) or local government and service providers plan to sustain the [intervention](/usc/42/1397n–12.md?p=2), if it is timely and appropriate to do so, to ensure that successful [interventions](/usc/42/1397n–12.md?p=2) continue to operate after the period of the [social](/usc/42/1397j.md?p=20) impact partnership.
- (d) **Project intermediary information required—** The application described in [subsection (c)](#c) shall also contain the following information about any intermediary for the [social impact partnership project](/usc/42/1397n–12.md?p=4) (whether an intermediary is a service provider or other entity):
  - (1) Experience and capacity for providing or facilitating the provision of the type of [intervention](/usc/42/1397n–12.md?p=2) proposed.
  - (2) The mission and goals.
  - (3) Information on whether the intermediary is already working with service providers that provide this [intervention](/usc/42/1397n–12.md?p=2) or an explanation of the capacity of the intermediary to begin working with service providers to provide the [intervention](/usc/42/1397n–12.md?p=2).
  - (4) Experience working in a collaborative environment across government and nongovernmental entities.
  - (5) Previous experience collaborating with public or private entities to implement evidence-based programs.
  - (6) Ability to raise or provide funding to cover operating costs (if applicable to the [project](/usc/42/13641.md?p=2)).
  - (7) Capacity and infrastructure to track outcomes and measure results, [including](/usc/42/1301.md?p=b)—
    - (A) capacity to track and analyze program performance and assess program impact; and
    - (B) experience with performance-based awards or performance-based contracting and achieving [project](/usc/42/13641.md?p=2) milestones and targets.
  - (8) Role in delivering the [intervention](/usc/42/1397n–12.md?p=2).
  - (9) How the intermediary would monitor program success, [including](/usc/42/1301.md?p=b) a description of the interim benchmarks and outcome measures.
- (e) **Feasibility studies funded through other sources—** The notice described in [subsection (a)](#a) shall permit a [State](/usc/42/619.md?p=5) or local government to submit an application for [social](/usc/42/1397j.md?p=20) impact partnership funding that contains information from a feasibility study developed for purposes other than applying for funding under this division.

## Source credit

(Aug. 14, 1935, ch. 531, title XX, § 2052, as added Pub. L. 115–123, div. E, title VIII, § 50802(2), Feb. 9, 2018, 132 Stat. 270.)