This study uses the example of the Emergency School Aid Act of 1972, a federal desegregation incentive program, to discuss the benefits and challenges of equity-oriented incentives. This study applies theories of policy instruments and the social construction of target populations to congressional records, archival program materials, and other historical sources to trace the origin and evolution of the incentives and mandates built into the Emergency School Aid Act. The study ultimately concludes that the program’s combination of a financial incentive with rigorous oversight offers lessons for how to incorporate equity-oriented incentives into current education policy.