Slashing Free Community College Cuts Billions in Economic Growth, Per New Report
With free community college left on the cutting room floor of reconciliation talks, so too is the potential for significant economic growth that could have covered the costs associated with the program.
In a new analysis, conducted by Georgetown University Center on Education and the Workforce, it was documented that investments made in furthering postsecondary education would have long-term benefits that would significantly outweigh the costs associated with the program. According to the report, the spending would boost real gross domestic product (GDP) by an average of roughly $170 billion per year over the next 10-year period.
Further, the report found that implementing the free community college plan would have increased tax revenue by an average of roughly $66 billion per year over the course of the next 10 years.
The recently unveiled Build Back Better legislation has significantly winnowed down a number of agenda items and could face further cuts. But with free community college language now clearly removed, it is all but certain that a number of higher education investments are at risk of not being addressed this congressional session.
The topic was further explored in a recent Bloomberg article, which breaks down additional policies concerning college affordability along with how proposed increases to the Pell Grant program will aim to bolster Democrats’ investments in higher education.
NASFAA on Monday unveiled a detailed report on how increasing the annual Pell Grant benefits both low- and middle-income families. Learn more about report and be sure to follow NASFAA’s advocacy efforts surrounding the #DoublePell campaign.
Georgetown University Center on Education and the Workforce pledged to continue to share updated research related to the free community college movement and how it would impact the economy.
