---
kind: "section"
citation: "42 U.S.C. § 1397n–2"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1397n–2"
heading: "Awarding social impact partnership agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1397n-2"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter XX — Block Grants and Programs for Social Services and Elder Justice"
  - "Division C — Social Impact Demonstration Projects"
---

# §1397n–2. Awarding social impact partnership agreements

- (a) **Timeline in awarding agreement—** Not later than 6 months after receiving an application in accordance with [section 1397n–1 of this title](/usc/42/1397n–1.md), the [Secretary](/usc/42/1301.md?p=a-6), in consultation with the Federal Interagency Council on [Social](/usc/42/1397j.md?p=20) Impact Partnerships, shall determine whether to enter into an agreement for a [social impact partnership project](/usc/42/1397n–12.md?p=4) with a [State](/usc/42/619.md?p=5) or local government.
- (b) **Considerations in awarding agreement—** In determining whether to enter into an agreement for a [social impact partnership project](/usc/42/1397n–12.md?p=4) (the application for which was submitted under [section 1397n–1 of this title](/usc/42/1397n–1.md)) the [Secretary](/usc/42/1301.md?p=a-6), in consultation with the Federal Interagency Council on [Social](/usc/42/1397j.md?p=20) Impact Partnerships and the head of any Federal [agency](/usc/42/1397n–12.md?p=1) administering a similar [intervention](/usc/42/1397n–12.md?p=2) or serving a population similar to that served by the [project](/usc/42/13641.md?p=2), shall consider each of the following:
  - (1) The recommendations made by the Commission on [Social](/usc/42/1397j.md?p=20) Impact Partnerships.
  - (2) The value to the Federal Government of the outcomes expected to be achieved if the outcomes specified in the agreement are achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2).
  - (3) The likelihood, based on evidence provided in the application and other evidence, that the [State](/usc/42/619.md?p=5) or local government in collaboration with the intermediary and the service providers will achieve the outcomes.
  - (4) The savings to the Federal Government if the outcomes specified in the agreement are achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2).
  - (5) The savings to the [State](/usc/42/619.md?p=5) and local governments if the outcomes specified in the agreement are achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2).
  - (6) The expected quality of the evaluation that would be conducted with respect to the agreement.
  - (7) The capacity and commitment of the [State](/usc/42/619.md?p=5) or local government to sustain the [intervention](/usc/42/1397n–12.md?p=2), if appropriate and timely and if the [intervention](/usc/42/1397n–12.md?p=2) is successful, beyond the period of the [social](/usc/42/1397j.md?p=20) impact partnership.
- (c) **Agreement authority—**
  - (1) **Agreement requirements—** In accordance with this section, the [Secretary](/usc/42/1301.md?p=a-6), in consultation with the Federal Interagency Council on [Social](/usc/42/1397j.md?p=20) Impact Partnerships and the head of any Federal [agency](/usc/42/1397n–12.md?p=1) administering a similar [intervention](/usc/42/1397n–12.md?p=2) or serving a population similar to that served by the [project](/usc/42/13641.md?p=2), may enter into an agreement for a [social impact partnership project](/usc/42/1397n–12.md?p=4) with a [State](/usc/42/619.md?p=5) or local government if the [Secretary](/usc/42/1301.md?p=a-6), in consultation with the Federal Interagency Council on [Social](/usc/42/1397j.md?p=20) Impact Partnerships, determines that each of the following requirements are met:
    - (A) The [State](/usc/42/619.md?p=5) or local government agrees to achieve one or more outcomes as a result of the [intervention](/usc/42/1397n–12.md?p=2), as specified in the agreement and validated by independent evaluation, in order to receive payment.
    - (B) The Federal payment to the [State](/usc/42/619.md?p=5) or local government for each specified outcome achieved as a result of the [intervention](/usc/42/1397n–12.md?p=2) is less than or equal to the value of the outcome to the Federal Government over a period not to exceed 10 years, as determined by the [Secretary](/usc/42/1301.md?p=a-6), in consultation with the [State](/usc/42/619.md?p=5) or local government.
    - (C) The duration of the [project](/usc/42/13641.md?p=2) does not exceed 10 years.
    - (D) The [State](/usc/42/619.md?p=5) or local government has demonstrated, through the application submitted under [section 1397n–1 of this title](/usc/42/1397n–1.md), that, based on prior rigorous experimental evaluations or rigorous quasi-experimental studies, the [intervention](/usc/42/1397n–12.md?p=2) can be expected to achieve each outcome specified in the agreement.
    - (E) The [State](/usc/42/619.md?p=5), local government, intermediary, or service provider has experience raising private or philanthropic capital to fund [social](/usc/42/1397j.md?p=20) service investments (if applicable to the [project](/usc/42/13641.md?p=2)).
    - (F) The [State](/usc/42/619.md?p=5) or local government has shown that each service provider has experience delivering the [intervention](/usc/42/1397n–12.md?p=2), a similar [intervention](/usc/42/1397n–12.md?p=2), or has otherwise demonstrated the expertise necessary to deliver the [intervention](/usc/42/1397n–12.md?p=2).
  - (2) **Payment—** The [Secretary](/usc/42/1301.md?p=a-6) shall pay the [State](/usc/42/619.md?p=5) or local government only if the independent evaluator described in [section 1397n–4 of this title](/usc/42/1397n–4.md) determines that the [social impact partnership project](/usc/42/1397n–12.md?p=4) has met the requirements specified in the agreement and achieved an outcome as a result of the [intervention](/usc/42/1397n–12.md?p=2), as specified in the agreement and validated by independent evaluation.
- (d) **Notice of Agreement Award—** Not later than 30 days after entering into an agreement under this section the [Secretary](/usc/42/1301.md?p=a-6) shall publish a notice in the Federal Register that [includes](/usc/42/1301.md?p=b), with regard to the agreement, the following:
  - (1) The outcome goals of the [social impact partnership project](/usc/42/1397n–12.md?p=4).
  - (2) A description of each [intervention](/usc/42/1397n–12.md?p=2) in the [project](/usc/42/13641.md?p=2).
  - (3) The target population that will be served by the [project](/usc/42/13641.md?p=2).
  - (4) 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.
  - (5) The detailed roles, responsibilities, and purposes of each Federal, [State](/usc/42/619.md?p=5), or local government entity, intermediary, service provider, independent evaluator, investor, or other stakeholder.
  - (6) The payment terms, the methodology used to calculate outcome payments, the payment schedule, and performance thresholds.
  - (7) The [project](/usc/42/13641.md?p=2) budget.
  - (8) The [project](/usc/42/13641.md?p=2) timeline.
  - (9) The [project](/usc/42/13641.md?p=2) eligibility criteria.
  - (10) The evaluation design.
  - (11) The metrics that will be used in the evaluation to determine whether the outcomes have been achieved as a result of each [intervention](/usc/42/1397n–12.md?p=2) and how these metrics will be measured.
  - (12) The estimate of the savings to the Federal, [State](/usc/42/619.md?p=5), and local government, on a program-by-program basis and in the aggregate, if the agreement is entered into and implemented and the outcomes are achieved as a result of each [intervention](/usc/42/1397n–12.md?p=2).
- (e) **Authority to transfer administration of agreement—** The [Secretary](/usc/42/1301.md?p=a-6) may transfer to the head of another Federal [agency](/usc/42/1397n–12.md?p=1) the authority to administer ([including](/usc/42/1301.md?p=b) making payments under) an agreement entered into under [subsection (c)](#c), and any funds necessary to do so.
- (f) **Requirement on funding used to benefit children—** Not less than 50 percent of all Federal payments made to carry out agreements under this section shall be used for initiatives that directly benefit children.

## Source credit

(Aug. 14, 1935, ch. 531, title XX, § 2053, as added Pub. L. 115–123, div. E, title VIII, § 50802(2), Feb. 9, 2018, 132 Stat. 273.)