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Historically Black Colleges and Universities (HBCUs) perform a pivotal role in educating and graduating Black students. This study explores the impact of one popular state-level accountability measure, performance-based funding (PBF) on HBCUs. Using a quasi-experimental difference-in-differences estimation strategy, I find a negative relationship between PBF policies and the enrollment of Black students, particularly Black males, with a decrease of 10 percent. Additionally, Black male completion of bachelor’s degrees fell by 22 percent.