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We use an exploratory sequential mixed methods case study to examine the higher education desegregation litigation and their impact on public HBCUs in four Southern states: Alabama, Maryland, Mississippi, and Tennessee. Public HBCUs, including 1890 federal land-grant institutions, endure chronic underfunding compared to public Predominantly White Institutions (PWIs), violating the Fourteenth Amendment's Equal Protection Clause. Despite litigation and consent decrees, disparities in state appropriations, infrastructure, faculty resources, and academic programs persist. Shifting to antitrust arguments, inspired by NCAA v. Bannon, addresses the way state governments systematically operate to stifle HBCUs’ overall competitive outputs.