The Legacy of Segregation: How Historical Policies Shape Today’s School Funding Gaps

Introduction

School segregation in the United States is not a relic of the past—it’s a persistent issue rooted in decades of systemic racism and discriminatory policies. A recent report, drawing on data from seven major metropolitan areas, reveals how historical practices like redlining have created enduring disparities in school funding and student outcomes. These findings underscore the urgent need to address segregation as part of broader efforts to achieve educational equity.

The Data: Segregation and Funding Disparities

The report highlights stark racial and ethnic gaps in school funding and performance. In the seven case study metro areas, 90% of majority-Black/Hispanic school districts spend below estimated adequate levels, compared to just 12% of majority-white districts. This translates to a $3,000 per student funding gap between white and Black students, with Hispanic students facing a $2,000 shortfall.

Even more alarming, 85% of majority-Black/Hispanic districts score below the national average in math and reading, while only 6% of majority-white districts do. These disparities are not random—they are the result of systemic segregation that has shaped school funding for generations.

Historical Roots: The Redlining Legacy

The report traces these inequities back to the Home Owners’ Loan Corporation (HOLC) redlining maps of the 1930s. These maps, which graded neighborhoods based on racial demographics, effectively determined access to home loans and investment. Areas with high Black/Hispanic populations were marked as “high risk” and shaded red, limiting economic growth in these communities.

Today, the C- and D-graded zones from these maps correspond with underfunded schools and higher poverty rates. For example, in the Birmingham metro area, neighborhoods once labeled “high risk” now serve majority-Black/Hispanic students and face severe funding shortfalls. The legacy of redlining has created a cycle of disinvestment that continues to shape educational opportunities.

Beyond Redlining: Other Segregation Tactics

The report also highlights other 20th-century tools used to maintain segregation, such as racial covenants (private agreements banning nonwhite homeowners), zoning laws, and blockbusting (real estate practices that fueled racial displacement). These strategies, often legal at the time, entrenched racial divides and limited access to resources.

Even today, secession—the splitting of districts to avoid integration—continues to exacerbate disparities. For instance, in Alabama, several affluent white districts broke away from Jefferson County in 1970, creating a patchwork of segregated schools.

The Path Forward: Policy and Reform

Addressing these disparities requires more than just increasing funding. The report emphasizes the need to dismantle the systems that perpetuate segregation. This includes:

• Revising state finance systems to ensure equitable funding across districts.
• Investing in historically underserved schools and communities.
• Challenging zoning and housing policies that reinforce segregation.

New Jersey, for example, is actively discussing ways to end segregated schools, with advocates and lawmakers pushing for reforms that prioritize equity. These local efforts reflect a national movement to confront the past and build a more just future.

Conclusion

The legacy of segregation is not just a historical footnote—it’s a living reality that shapes today’s schools. By understanding how policies like redlining and racial covenants created funding gaps, we can take meaningful steps toward equity. The fight for educational justice requires confronting the past, dismantling systemic barriers, and investing in communities that have long been overlooked. Only then can we ensure every student has the opportunity to succeed.

Call to Action

Educators, policymakers, and communities must collaborate to address these inequities. Support policies that prioritize equitable funding, challenge segregation, and invest in schools that have been historically underserved. The future of education—and the future of our society—depends on it.

Sources: The report by Bruce D. Baker, Matthew Di Carlo, and Preston Green III; New Jersey Spotlight’s coverage of segregation reform efforts.