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Process Study of the U.S. Department of Labor's “Pay for Success” Pilots in Two States: Development of the Grant Applications and Initial Implementation

Abt Global


February 9, 2017
In September 2013, the U.S. Department of Labor (DOL) awarded grants to two states, New York and Massachusetts, to operate Pay for Success (PFS) pilot projects.The PFS model, which uses financing from private sector and philanthropic sources, is thought to have the potential to promote innovation and to allow evidence-based practices to be scaled up, thus improving social or environmental outcomes for people and communities.

DOL also sponsored a process study of the two PFS pilots, conducted by Abt Global, to document project implementation and provide information on the PFS approach for policymakers and program administrators. This is the process study’s first report. It documents the development of the pilots, much of which occurred during the grant application process, and their early implementation through September 2014. The report is based on in-person interviews conducted in fall 2014 with the key partners involved in each pilot and reviews of grantee documentation and performance data that was reported to DOL.