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The study, "Investing in Our Nation's Future: Advancing Educational Opportunity for Underserved Students," authored by economists Drs. Emma García and Henry Levin for UCLA's Civil Rights Project, arrives amid profound demographic shifts that will see students of color become nearly three out of every four school-age children by 2060.
"Investing in the education of all children is not only a long-standing moral imperative but also an increasingly strategic economic decision, particularly in light of the nation's need to equip all children to contribute to its future prosperity," the report states.
The researchers analyzed decades of economic evaluations of educational interventions across early childhood education, secondary and higher education completion, school integration, and comprehensive support programs. They found that effective programs consistently generate substantial returns—ranging from approximately $2 to over $10 for every dollar invested.
According to the report's simulations, if Black and Hispanic students enrolled in early childhood education, graduated from high school, and completed associate's degrees at the same rates as White students, the increased net benefit to the general public would total approximately $72.6 billion per year. Even cutting those gaps in half would yield $36.1 billion annually in public benefits.
The timing is critical. U.S. Census projections show that by 2060, the population will include 64 million more individuals from racial and ethnic minority backgrounds, 33 million fewer White individuals, and 8 million fewer children and youth overall. The school-age population will decline by seven million.
"Maintaining the current course would lead to worsened educational and economic aggregate outcomes for the U.S., which would growingly reflect those of individuals from historically disadvantaged backgrounds and the deep-seated and persistent inequalities in opportunities to learn they experience," the report warns.
The study highlights several proven interventions with strong economic returns. Early childhood education programs show particularly impressive results, with benefit-to-cost ratios typically ranging from $2 to $4 for every dollar invested, and sometimes reaching much higher. The landmark Perry Preschool Program evaluation found net benefits to taxpayers of $12.90 per dollar invested.
For high school completion programs, the report cites research showing benefit-to-cost ratios of about $2.50 per dollar invested. Community schools and integrated student support programs generate returns ranging from $3 to $15 in benefits per dollar invested.
School integration initiatives, while lacking comprehensive economic evaluations, show significant impacts on participating students' long-term outcomes. Research by economist Rucker Johnson, cited in the report, found that five years in a desegregated school led to increased wages and work hours that raised earnings by nearly 30 percent for Black students.
"The evidence shows significant improved performance of children of Black individuals exposed to integration, improved occupational attainment, improved adult earnings, health, and reduced poverty," the report notes, adding that "there was a concern that integration was going to have negative effects on White children" but results demonstrated "that did not happen."
The report challenges conservative arguments that have dominated education policy for more than a generation. In a foreword, prominent UCLA professor Dr. Gary Orfield writes that the analysis "shows compelling scientific evidence to the contrary—that some educational reforms have succeeded in both strengthening the preparation of the next generation and creating substantial economic benefits for society as a whole."
The researchers acknowledge concerns about scaling up interventions while maintaining effectiveness. However, they point to evidence from large-scale programs like Boston's Universal Preschool and California's Transitional Kindergarten showing that "sustained gains in generalized and large settings are feasible."
The study emphasizes that successful interventions typically share certain characteristics: higher quality, greater intensity, longer duration, and stronger dosage effects produce larger benefits. "The more they cost, the larger the benefits," the report states. "Larger, stronger investments produce larger benefits."
García and Levin also note that while disadvantaged students often benefit most, "all participants can reap significant benefits, or, at the very least, experience no harm, so that improving the human capital of any group results in broader societal benefits."
The report comes as the Trump administration and Congress have enacted legislation in 2025 cutting education budgets and shifting funds to private school vouchers—policies the researchers argue contradict available evidence. Research shows vouchers "actually produce an average decline in educational outcomes for low-income families," according to the report.
The authors call for expanding the use of economic evaluation as "an essential component of the toolkit used to uncover the full returns and their distribution of any new investments" in education policy.
"While the monetary metrics are compelling, it is the vision of a more just and prosperous society—with reduced inequality, a more dynamic economy, and enhanced well-being—that truly underscores the enduring value of such investments," the report concludes.
