Four organizations have been chosen to create or expand career and technical education programs through a grant-funding model that requires government agencies to pay for the projects only after they’ve proven they’re successful.
Advanced by President Barack Obama, the “pay for success” approach pools private investments to fund projects supported by the U.S. government—in this case, career and technical education programs—with a promise of government reimbursement if the project proves its effectiveness.
On Tuesday, Jobs for the Future, a group that works on education issues, and Social Finance, an organization that assembles funding, announced the four CTE projects that will launch through the U.S. Department of Education’s “pay for success” grant program. Last October, Jobs for the Future and Social Finance won a $2 million grant from the department—its first under the “pay for success model”—to solicit possible projects. Now the two groups have chosen the projects that will move forward.