This paper presented a cost-benefit analysis of the returns to the public from reductions in recidivism associated with the Washington, D.C. Graduated Sanctions Program (GSP) for drug felony defendants. The evaluation measured the costs and benefits of the drug court from the perspective of the public by assessing how effectively public funds were used in achieving reductions in future costs of crime. The goals were two-fold. One goal was to present the findings on the costs and benefits of the GSP. The second goal was to present a discussion of issues that must be addressed in designing a cost-benefit analysis of a pretrial drug intervention program. The sample of 676 was drawn from drug felony defendants charged and randomly assigned to either the GSP docket (n = 365) and the standard docket (n = 311). The results found that the GSP saved two dollars in averted crime-related costs for every dollar spent on the program. The evaluation results provided evidence that the use of graduated sanctions by courts can directly contribute to reductions in drug use during pretrial release and crime in the year following sentencing, and that their use resulted in cost savings in terms of reduced offending, independent of treatment participation, drug testing, and judicial monitoring. Tables and references