The report concludes that although U.S. crime rates are historically low, the criminal justice system incarcerates 2.2 million people; costs taxpayers hundreds of billions of dollars annually; and imposes substantial indirect adverse consequences on individuals involved in the justice system, along with their families and communities. These adverse consequences impact employment, health, debt, transportation, housing, and other survival needs. Economic research suggests several policies for making the U.S. criminal justice system more cost-effective and equitable. In reflecting on criminal justice policy evaluation research and economic analysis, the Obama Administration has taken steps to make the criminal justice system more effective, efficient, and equitable. It has invested in targeted prevention programs for youth and early childhood education to reduce crime in the near-term and over the long-run. It has promoted community policing and improved police transparency, so as to improve community safety and build community. It has sought to change employment restrictions and expand access to health care and housing to facilitate ex-offenders' reentry into the community after serving their sentences. In addition, the Obama Administration has implemented new policies that improve and expand skill and job training, mental health services, and access to education for inmates, so as to reduce barriers to reentry and decrease recidivism. It will continue to work for reform within the Executive Branch and work with Congress to pass legislation aimed at criminal justice reform. 38 figures, 2 tables, and approximately 200 references