Performance Funding: Impacts, Obstacles, and Unintended Outcomes

Aimed at policymakers, this brief summarizes findings from extensive reviews of the literature on performance funding nationwide. The brief describes the difference between performance funding 1.0 and 2.0, the research evidence on the impacts of performance funding 1.0, and the obstacles and unintended outcomes that performance funding may encounter. It then offers suggestions for addressing those obstacles and avoiding unintended outcomes.