The case study is an analysis of a state performance funding policy at a public historically Black college and university (HBCU). The policy attaches state funding to HBCU performance on measures like graduation rates and equity measures like the reduction in achievement gaps between Black and non-Black students. Participants liked that the policy helped the institution to become more outcome minded, but were critical of the equity measures and their relationship with the state system of higher education. The article addresses how the HBCU’s mission was addressed in the policy and its plans for responding that includes focusing on Latino students.