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This book examines how Performance or Outcomes Based Funding (POBF) policies impact racial equity in higher education. Over the last decade, higher education has become entrenched in a movement that holds colleges and universities more accountable to its supporters. There are pressures to answer questions about student outcomes and performance, the value of education, the effectiveness of instructors, and the ability of existing leaders to manage efficiently and effectively. It is within this climate that states have adopted POBF policies. Through POBF, public colleges and universities receive state funding through formulas that no longer rely solely on student enrollment, but are instead based on student outcomes. This book provides an overview for policymakers of how racial equity has been addressed, the impact of these approaches, and recommendations for moving forward.