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New UCLA Report Finds Educational Investments Could Yield $72.6 Billion Annually in Public Benefits

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Community Schools Impact 920x513File photoA new UCLA report finds that closing educational gaps between Black, Hispanic, and white students could generate between $20.2 billion and $72.6 billion per year in net benefits to taxpayers, challenging long-standing skepticism about public education investments.

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.

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