The brief examines the U.S. prison system’s $74B market and rising incarceration/recidivism, highlighting disproportionate harm to Black and Latino communities and the costs/opportunities for reform (pp.2–4). Private providers now serve >10% of corrections, profiting from high-fee services (e.g., phone calls up to $1.22/min; $460M in commissions in 2013), which burden low-income families and can trigger re-incarceration through debt (pp.3–6). Taxpayers spend $14k–$60k per inmate annually, with >50% returning to prison (p.3). Education and reentry supports are promising: a RAND meta-analysis finds $1 in correctional education cuts recidivism by 43% in three years; tech-enabled courses perform at least as well as teacher-led options, crucial amid budget cuts (pp.6–7). Tailwinds include growing evidence and pilot programs; headwinds include entrenched fee structures and political resistance (pp.5–6). Next steps point to scalable education, reentry employment, and alternative-sentencing models with public–private pilots (pp.7–15).
Some Identified Companies
- Jail Education Solutions (Edovo): Tablet-based curricula and incentives to drive rehabilitation and reduce recidivism (p.7).
- Pigeonly: Low-cost VOIP numbers and photo mailings to keep families connected despite exploitative fee regimes (pp.8, 4–6).
- American Prison Data Systems (APDS): Secure tablets and distance learning to improve safety, learning, and reentry outcomes (p.8).
Notable Investors
- MacArthur Foundation: Safety and Justice Challenge to reduce jail overuse via local reform, research, and communications (pp.15–16).
- Laura and John Arnold Foundation: Data/technology-driven reforms from arrest through sentencing to improve fairness and cost (p.16).
- REDF: Capital and expertise for social enterprises creating jobs for people facing barriers to work (pp.16–17).