Concerned with low on-time graduation rates, state lawmakers continue to turn to outcomes-based funding (OBF) as one policy approach to support postsecondary degree attainment and workforce goals. Policymakers have also been confronted with constituent complaints about student debt loads, course schedules and academic programs that force students to enroll in additional terms, and transfer policies that require students to retake courses already completed at other public two- and four-year institutions in the same state. This Policy Snapshot defines and explores outcomes-based funding, and provides summary information on 2016 and 2017 legislative activities.