,,ii #aaeth ,,congress #ast ,session ,s4 #ajdc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #d1 #bjag ,mr4 ,bennet 7for himself and ,mr4 ,hatch7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to authorize pay-for-success projects designed to incentivize and reward successful efforts to increase postsecondary education retention and completion rates for low-income and first-generation students4 #a4 ,short title ,this ,act may be cited as the ,pay for ,student ,success ,act4 #b4 ,authorization of pay-for-success projects ,part ,b of title ,,vii of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #aach et seq47 is amended-- 7#a7 by redesignating section #gde as section #gdf2 and 7#b7 by inserting after section #gdd the following3 #gde4 ,pay-for-success projects 7a7 ,definitions ,in this section3 7#a7 ,pay-for-success project ,the term pay-for-success project refers to a performance-based contract under this section in which-- 7,a7 the eligible entity pursues innovative strategies for improving outcomes and conducts a rigorous evaluation of the results to determine effectiveness2 7,b7 the ,secretary and the eligible entity agree to target outcomes2 7,c7 the ,federal ,government imposes minimal administrative requirements on the eligible entity to allow for maximum flexibility to improve efficiency and effectiveness2 and 7,d7 the eligible entry may receive additional funding under this section if the eligible entity achieves successful outcomes as demonstrated through a rigorous independent evaluation approved by the ,director of the ,institute of ,education ,sciences4 7#b7 ,eligible entity ,the term eligible entity means-- 7,a7 an institution of higher education2 7,b7 a nonprofit organization2 7,c7 a consortium composed of an institution of higher education and a nonprofit organization2 or 7,d7 an entity described in subparagraph 7,a71 7,b71 or 7,c7 in partnership with-- 7i7 a local educational agency2 7ii7 a business2 7iii7 a ,state educational agency2 or 7iv7 a ,state department of higher education4 7b7 ,pay-for-,success projects authorized ,from the amounts appropriated under section #gdf1 the ,secretary shall enter into contracts with eligible entities for pay-for-success projects that develop1 implement1 evaluate1 and promote innovative strategies for increasing the postsecondary education retention and completion rates of-- 7#a7 students who receive ,federal ,pell ,grants2 and 7#b7 first-generation postsecondary students4 7c7 ,application 7#a7 ,in general ,an eligible entity desiring a contract under this section shall submit to the ,secretary an application at such time and in such form as the ,secretary may require4 7#b7 ,contents ,the application described in paragraph 7#a7 shall include-- 7,a7 a description of the eligible entity's strategy for improving the retention and completion rate1 at one or more institutions of higher education1 for students who receive ,federal ,pell ,grants or first-generation postsecondary students2 7,b7 an identification of the target population for the pay-for-success project and of the target outcomes to be achieved2 7,c7 an identification of the independent entity that will carry out a robust1 rigorous evaluation approved by the ,director of the ,institute of ,education ,sciences to determine the effectiveness of the pay-for-success project1 and a description of the methodology that the entity will use for this evaluation1 including the timeline for completion2 and 7,d7 the total cost of the pay-for-success project and an assurance that the eligible entity will meet the funding requirement described in subsection 7d71 and an identification of the sources of the funding4 7d7 ,project funding 7#a7 ,in general ,each eligible entity receiving a contract under this section shall demonstrate that the eligible entity will provide for the project funds1 in cash or through in-kind contributions1 from non-,federal sources in an amount equal to #ij percent of the total cost of the pay-for-success project4 7#b7 ,federal support ,the ,secretary shall provide a grant to each eligible entity receiving a contract under this section in an amount equal to #aj percent of the total cost of the pay-for-success project4 7e7 ,pay-for-,success payments 7#a7 ,additional funds available ,if1 upon completion of a pay-for-success project1 the ,secretary determines1 based on the results of the evaluation described in subsection 7c77#b77;,c71 that the pay-for-success project has demonstrated effectiveness in a cost-effective manner and has met the target outcomes described in subsection 7c77#b77;,b71 the ,secretary may use funds available under this part to provide additional funds to reimburse the eligible entity carrying out the pay-for-success project for not more than #ge percent of the total cost of the pay-for-success project identified in the application under subsection 7c77#b77;,d74 7#b7 ,considerations ,in making the determination under paragraph 7#a71 the ,secretary shall take into account the strength and ambition of the target outcomes described in subsection 7c77#b77;,b74 7f7 ,dissemination of evidence-,based strategies ,the ,director of the ,institute of ,education ,sciences shall broadly disseminate-- 7#a7 the evaluations conducted under the contracts under subsection 7b71 including the data collected through the evaluations2 7#b7 successful and evidence-based strategies of eligible entities carrying out pay-for-success projects2 and 7#c7 information1 including project design and evaluation1 from such eligible entities regarding practices that were found to be ineffective and1 to the extent practicable1 an explanation of why4 4