### Question
How does the law define pay for success initiative?


### Answer
Under *20 U.S.C. § 2302*, **pay for success initiative** is defined as:

> a performance-based grant, contract, or cooperative agreement awarded by a State or local public entity (such as a local educational agency) to a public or private nonprofit entity—


(i) in which a commitment is made to pay for improved outcomes that result in increased public value and social benefit to students and the public sector, such as improved student outcomes as evidenced by the indicators of performance described in section 2323(b)(2) of this title and direct cost savings or cost avoidance to the public sector

#### Citation:
  - *20 U.S.C. § 2302*
  - Heading: **CHAPTER 44-CAREER AND TECHNICAL EDUCATION**

