New NBER Study Finds Free Community College Programs Pay for Themselves Through Increased Tax Revenue
A new working paper from the National Bureau of Economic Research (NBER) indicates that free community college programs, such as Tennessee Promise, are financially self-sustaining. The study, conducted by economists from the University of Tennessee, Saint Mary’s College of California, and the Tennessee Office of Evidence and Impact, found that Tennessee Promise increased college enrollment, boosted degree completion, and raised early-career earnings. Crucially, the program generated enough new tax revenue to more than offset its costs. The researchers estimate an infinite marginal value of public funds, meaning every public dollar spent yielded positive benefits at no net cost to the government. Tennessee Promise, which began as a single-county pilot in 2009 and expanded statewide in 2015, serves as a model for over 20 other states offering similar 'last-dollar' free community college programs. 
