The District of Columbia wants investors to bet on its ability to reduce teen pregnancy.
Mayor Vincent Gray's office announced Wednesday that it will sell what are known as Social Impact Bonds to pay for a program to reduce teen pregnancy and help more teenagers graduate from high school. The idea is for "socially conscious investors'' to fund the program, and if it achieves the desired results, they get their money back.
The mayor's office says the District would become the first jurisdiction in the nation to use Social Impact Bonds to combat teen pregnancy. The District's teen pregnancy rate is higher than the national average.
A nonprofit called Social Finance US will work with the District to develop the bond program.