In October 2016, the U.S. Department of Education awarded a $2 million grant to Social Finance, Inc. and Jobs for the Future to expand high-quality Career and Technical Education (CTE) programs for underserved, high-need youth through Pay for Success (PFS). This project was completed over 60 months, from October 2016 to September 2021. The ultimate aim of the technical assistance program was to aid local CTE sites in improving outcomes for underserved, high-need youth through PFS and the principles that undergird it.
Social Finance and Jobs for the Future (JFF) held a national competition from January to March 2017 and selected four partner sites to receive technical assistance in assessing the feasibility of using PFS financing to implement a new or scale an existing CTE program. Social Finance and JFF awarded technical assistance to four CTE sites: Mahoning County Educational Services Center (MCESC), focused on regional collaboration between stakeholders in northeastern Ohio; NAF, focused on expanding work-based learning and paid internships for their work in Dallas, Texas; Pharr-San Juan-Alamo Independent School District, focused on expanding their agriculture career pathways in the Rio Grande Valley in Texas; and South Bay Community Services in San Diego, California, focused on launching and scaling their Back on Track program. From June 2017 to November 2018, Social Finance and JFF completed feasibility studies for these four sites. In August 2019, Social Finance and JFF launched a second competition that did not result in a completed feasibility study.
In August 2020, Social Finance and JFF launched the final round of the national competition to select up to two sites to receive technical assistance. In January 2021, Social Finance and JFF selected Education Service Center Region 19 in El Paso, TX and the School District of Palm Beach County in Palm Beach County, Florida as the winning sites, completing feasibility studies in September 2021.
Over the course of the grant term, sites gained an increased understanding of PFS and the principles that support it, including clearly defined outcomes, data-driven decision making, cross-sector partnerships, and strong governance and accountability. The availability of outcomes payors remains a key input most sites need to engage in PFS, and opportunity exists for each in an expanding suite of PFS tools for sites beyond the Social Impact Bond, including Outcomes Rate Cards, Career Impact Bonds (for young adults), and more.
In October 2016, the U.S. Department of Education awarded a $2 million grant to Social Finance, Inc. and JFF to expand high-quality Career and Technical Education (CTE) programs for underserved, high-need youth through Pay for Success (PFS). This project was completed from October 2016 to September 2021.
The aim of the CTE PFS TA program was to improve outcomes for underserved, high-need youth by expanding access to high-quality CTE programs using PFS financing.