Pay for Success

On July 26, 2016 the Department published a Federal Register notice for the Providing High-Quality Career and Technical Education Programs for Underserved, High-Need Youth through a Pay For Success Model Program. The purpose of this program is to support the development of a financing model, high-quality Pay for Success (PFS), to implement new or scale up existing high-quality career and technical education (CTE) projects for underserved, high-need youth (CTE PFS Project).

To this end, the Department will award a $2 million grant for a 48-month period to an Intermediary to provide technical assistance for the first two of three phases of a PFS financing model. In phase one, the Intermediary will complete feasibility studies in four local CTE sites. In phase two, the Intermediary will provide or support transaction structuring, based on the limited funding level, for up to three out of the previously identified four local sites to the extent that the local site’s CTE PFS project is determined to be feasible. While it is our intent that all of the selected local CTE PFS projects will result in a fully-structured PFS project ready to launch, each program may have different challenges that might result in not all projects completing these first two phases by the end of the grant period. The ultimate aim of the CTE PFS TA program is to improve outcomes for underserved, high-need youth through fully-structured high-quality PFS projects ready to be implemented in the local CTE sites using high-quality CTE programs.

Applications were due to the Department on Thursday, August 25, 2016.  

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