Policy, Rights & Advocacy

Study: Incarceration costs U.S. families $350 billion a year

Published On: June 11, 2025
Framestock - stock.adobe.com / 629952710 African American inmates in detention center or correctional facility. Depressed man in orange uniform sits on prison bed and looks at barred window. Prisoners serve imprisonment term in jail cell.
Framestock - stock.adobe.com / 629952710 African American inmates in detention center or correctional facility. Depressed man in orange uniform sits on prison bed and looks at barred window. Prisoners serve imprisonment term in jail cell.
Framestock - stock.adobe.com / 629952710 African American inmates in detention center or correctional facility. Depressed man in orange uniform sits on prison bed and looks at barred window. Prisoners serve imprisonment term in jail cell.

Credit: WXPR | By Judith Ruiz-Branch/Wisconsin News Connection

A new study highlights the high price of incarceration, and says the annual total cost to families of Americans behind bars is nearly $350 billion.

The study from the nonprofit FWD.us says one in two American adults has seen incarceration in their immediate family, with higher rates among Black Americans.

Families with a member in jail or prison spend about $4,000 a year, and the report says for Black families, the cost is more than double due to longer sentencing.

Zoe Towns - executive director of FWD.us - said expenses like phone calls, care packages, long-distance travel, and new costs at home all contribute to the exorbitant price.

"It also includes depressed wages over the lifetime of the person who's incarcerated, who's no longer able to contribute," said Towns. "But also to all the other members of the family who oftentimes are also now experiencing lower pay, just because of all of the shock of incarceration and the disruption that comes with that."

She added that the children of people behind bars usually see their own wages depressed throughout their lifetime, even after a parent is released.

Wisconsin's incarceration rate is among the highest in the nation. Black Wisconsinites are locked up at a rate nearly 12 times higher than whites, despite making up just 6% of the state's population.

The report shows incarceration rates are also higher for people in poverty, with subsequent expenses eating up more than a quarter of the family income.

Towns said the stigma around incarceration often means it's overlooked in discussions about household budgets.

"This report comes at a time when lawmakers and the American public are really thinking seriously about spending, about the price of everyday costs, they're thinking about affordability," said Towns. "And this is just one of those key drivers of affordability that is pretty significant and also under-discussed."

Towns noted that after 15 years of bipartisan criminal justice reforms to reduce incarceration, some political leaders are pushing to re-embrace it.

But she pointed out that states that have reduced incarceration have seen faster declines in their crime rates.

"And this is just another reminder of the harms of going backwards," said Towns. "It's not just that we don't need it, that it can't be defended on public safety grounds, it's also that it's coming at an extraordinarily high cost - not just to taxpayers, but directly out of the pockets of family members who are impacted by it, which is a great many people in America."

Towns said she hopes the research lifts up the stories of these families so policymakers can begin to address the issue more fully.

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