Published Online in:
Educational Evaluation and Policy Analysis
September 10, 2025

Emily Rauscher, Brown University
Jeremy E. Fiel, Rice University

School funding has become more economically progressive but remains unequal by race/ethnicity. As desegregation efforts decline, school finance reforms (SFRs) are increasingly important for addressing racial/ethnic funding disparities, but their implications are unclear. We build on existing work by estimating SFR effects on funding by income, race, and ethnicity, extending analysis through 2022, using recently developed difference-in-differences models to address variation in SFR timing, and examining additional and recent SFRs. We find that SFRs increased funding equality by income but at best had only modest benefits for equality by race/ethnicity. SFRs were more effective at reducing racial funding inequality in states with low initial inequality and low race-by-income segregation. Results highlight limitations of class-based state reforms to address racial/ethnic disparities.

Read the full open-access article

Read the press release: "State School Finance Reforms Increased Racial and Ethnic Funding Inequities, New Study Finds"

Video: Study co-author Emily Rauscher discusses findings and implications of the study

Study citation: Rauscher, E., & Fiel, J. E. (2025). Slow progress: School finance reforms and racial disparities in funding. Educational Evaluation and Policy Analysis. Prepublished September 10, 2025. https://doi.org/10.3102/01623737251362855

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