Social Finance and Jobs for the Future have announced a grant of $2 million from the U.S. Department of Education in support of a Pay for Success (PFS) initiative aimed at advancing high-quality career and technical education (CTE) across the country.
The largest single PFS grant ever awarded by the Department of Education will provide funding to South Bay Community Services in Chula Vista, California; NAF (formerly the National Academy Foundation) in New York City; Mahoning County Educational Services Center in Canfield, Ohio; and Pharr-San Juan-Alamo Independent School District in Pharr, Texas, to create or expand CTE programming for high-need, underserved youth. The PFS model leverages private capital to scale programs that have proven to be effective and ensures that government only pays for results. JFF and Social Finance will work with the organizations and districts to create or expand CTE programming and then identify private investors to invest in those programs. PFS projects typically span four to six years, allowing participants to measure the long-term impact of the programs.
"We are particularly excited about the diversity of the selected CTE sites, spanning different geographies, program models, and populations served," said Social Finance CEO Tracy Palandjian. "With support from the Department of Education, we will explore how Pay for Success can equip young people with the skills they need to thrive in the twenty-first century economy."