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Participatory Budgeting has become a widely used tool for deepening democracy. Existing research provides evidence that PB fosters empowerment attitudes, particularly in places with deep inequality. While promising, questions remain as to whether PB can be effective as a tool for racial equity and justice. This paper develops a conceptual model, Participatory Redistribution, for how participatory governance can work towards a racial equity and justice project by democratizing K-12 urban schools. I test this model through an original field experiment with New England urban schools.