The Five Evergreen Acres: A Land Investment Framework for Every Stage of African American Life

Posted on May 8, 2026 by | Leave a comment

Land is the only thing in the world that amounts to anything, for it’s the only thing in this world that lasts. It’s the only thing worth working for, worth fighting for… – Ted Turner

Raw land is among the oldest and most durable asset classes available to private investors. For the HBCU community — individuals, families, alumni associations, and institutional partners — it is also among the most underutilized.

There is a social media post circulating in land investment circles that reads simply: “Forget the luck of the Irish. We prefer the certainty of a deed.” Beneath that caption sits a framework titled “5 Evergreen Land Staples” — timberland, pastureland, recreational property, waterfront land, and prime agricultural ground — each chosen for the same fundamental quality: enduring income or appreciation that does not require the daily volatility management of equities or the tenant fragility of residential real estate. The post is from Land.com, a mainstream marketplace catering primarily to rural landowners. The audience it implicitly addresses is white, rural, and generationally landed. Yet the analytical framework it articulates is precisely what the African American institutional ecosystem needs to operationalize and the HBCU community, with its networks of graduates, alumni chapters, and anchor institutions spread across the American South and beyond, is uniquely positioned to execute it at scale.

The stakes are not trivial. As the Federation of Southern Cooperatives Land Assistance Fund has documented, African Americans own less than 1% of all privately owned rural land in the United States. That figure represents one of the most consequential economic collapses in modern American history, a loss that accelerated across the 20th century through discriminatory lending, heirs’ property dispossession, and the systematic exclusion of Black farmers from federal agricultural credit systems. Between 1910 and 2020, African American land ownership fell by roughly 90%, from an estimated 15–16 million acres to less than 2 million today. Reversing even a fraction of that trajectory requires not only individual decision-making but coordinated institutional action. This article maps a practical framework anchored in the five evergreen land categories for how African Americans at every life stage, and HBCU-affiliated institutions at every organizational level, can begin to build durable land portfolios through structures that keep capital inside the ecosystem.

Before addressing who should invest and how, it is worth establishing why the five categories on that social media post represent genuinely strategic holdings rather than speculative fashions. Timberland is distinctive because its primary asset — standing timber — continues growing in value as long as it stands. As one institutional investor noted at the 2009 Timberland Investment World Summit, timber was the only major asset class not to decline during the Great Recession: “As long as the sun is shining trees will grow and your timber’s value will increase.” For long-horizon investors, which includes endowments, alumni foundations, and family trusts, timberland offers inflation protection, biological growth as a return mechanism, and periodic harvest income that can be timed to liquidity needs. Pastureland generates recurring lease income from ranchers and livestock operators with relatively low management overhead, while the underlying land appreciates over time and the lessee carries operational risk. For a first-generation land investor or a young family with limited bandwidth for active management, a leased pasture parcel generates cash flow from day one. Recreational property, including hunting and fishing grounds, has benefited from the structural shift toward experiential consumption, outdoor recreation spending in the United States now exceeds $780 billion annually and the demand for private access through leased hunting rights or short-term rentals has made rural recreational parcels a viable income source even at modest scale. Waterfront land commands a persistent scarcity premium, as lakefront, riverfront, and coastal parcels face an absolute supply constraint that no amount of construction can remedy, with appreciation rates for quality holdings historically outpacing inland equivalents by substantial margins. Prime agricultural land, the fifth category, combines appreciation and income in proportions that no other asset class consistently replicates, with farmland producing positive real returns in nearly every decade since World War II while the growing global demand for food production adds a structural tailwind that shows no sign of abating.

For the African American individual investor, particularly recent HBCU graduates entering the workforce, raw land is rarely the first investment that financial advisors recommend. Equities, retirement accounts, and residential real estate occupy the conventional hierarchy. This is understandable but strategically incomplete. Raw land, particularly rural parcels in the 10–100 acre range, is far more accessible in price terms than most urban professionals realize. In many parts of the rural South and Midwest, quality pastureland or timberland can be acquired for $1,500–$4,000 per acre, meaning a 20-acre parcel may require a down payment comparable to what urban renters spend in twelve months on housing. The critical discipline for individual investors is to treat the first land acquisition not as a lifestyle purchase but as a strategic asset. A 20-acre timberland parcel generates modest income while the timber matures but builds balance sheet equity that can later be pledged as collateral for subsequent acquisitions, a mechanism that generationally landed families have used for centuries. The key to making this work is choosing land that produces some income immediately, whether through a hunting lease, a hay-cutting arrangement, or a grazing license, so that carrying costs do not exceed cash flow while long-term appreciation accrues. Structurally, individuals should acquire rural land through a single-member LLC rather than in personal name, for both liability protection and eventual transfer efficiency. The LLC structure also allows for the clean addition of family members as equity holders over time, laying the legal groundwork for the next stage of ownership.

A young family with children faces a different calculus than a single investor. The time horizon extends to 30 or 40 years, the need for tax-efficient transfer becomes relevant, and the question of heirs’ property known as the informal, undivided ownership arrangement that has caused the dispossession of millions of acres of Black-owned land must be proactively addressed from the first deed. Heirs’ property arrangements leave undivided interests in land vulnerable to partition sales, through which any one heir can force a sale often to outside buyers at below-market prices. A young family acquiring land today should structure the purchase inside a family LLC or land trust from inception, with a clear operating agreement specifying decision-making rights, buyout provisions, and management authority. This structural discipline costs several hundred dollars in legal fees at formation but eliminates the single greatest mechanism by which Black-owned land has historically been lost. For young families, pastureland and prime agricultural ground are the most suitable of the five categories. Leased to a working farmer on an annual or multi-year cash rent arrangement, these parcels generate predictable income typically $100–$300 per acre annually in productive regions while the family’s equity compounds. Agricultural land near HBCUs, particularly the 1890 land-grant institutions with active extension programs, offers an additional advantage: the university’s agronomic and soil science resources can improve the land’s productivity and rental value over time, particularly where a formal university-farmer partnership exists.

For African American households in the wealth-accumulation or pre-retirement phase, typically those between 45 and 65 with existing equity in residential real estate or retirement accounts, raw land fills a specific portfolio gap. It provides non-correlated returns, inflation protection, and estate planning flexibility that equity-heavy portfolios lack. At this stage, the five-category framework can be pursued more deliberately. Waterfront land and timberland, which require longer holding periods to realize full appreciation, are most appropriate for mature investors who do not need near-term liquidity. A modest timber holding, held for 20 years through a managed investment timberland organization, can produce both periodic harvest income and terminal land value appreciation that substantially outpaces a bond portfolio over the same horizon. Conservation easements on qualifying land parcels offer an additional mechanism: by granting a qualified land trust a permanent easement that restricts development, the landowner receives a federal income tax deduction equal to the value of the development rights surrendered, a tool that high-income African American professionals have underutilized relative to white rural landowners who have deployed it extensively. This is also the stage at which entry into private Real Estate Investment Trust structures becomes viable. A private REIT organized around agricultural or timberland holdings allows a group of accredited investors like friends, family members, or professional associates to pool capital into a formal investment vehicle with a shared land portfolio, professional management, and pass-through tax treatment. Unlike publicly traded REITs, a private land REIT can be sized for a community of 10–50 investors, managed by a professional trustee, and built specifically around the five evergreen categories. The formation cost is meaningful but amortizes quickly across the investor pool, and the structure creates a formal institutional container for what would otherwise remain fragmented individual decisions.

Not every land investment begins with a formal institutional structure. Some of the most durable private wealth in America was built by small groups of trusted individuals such as former college roommates, fraternity and sorority members, professional cohort peers who pooled capital informally before any institution took notice. For the HBCU community, this peer-to-peer investment model is both historically familiar and structurally underdeployed. A group of five former classmates, each contributing $10,000, creates a $50,000 acquisition fund. In rural land markets across the South, that capital is sufficient to purchase 15–30 acres of quality pastureland or recreational property with room for closing costs and an operating reserve. The land is titled inside a jointly owned LLC, the operating agreement governs decision-making and buyout rights, and the group begins building a shared balance sheet that none of them could have assembled individually on the same timeline. The social infrastructure already exists. HBCU alumni networks are among the most tight-knit in American higher education, and the bonds forged between classmates across Greek organizations, residence halls, student government, and athletic programs carry the relational trust that small investment partnerships require above all else. What is missing is not the social capital but the financial framework to convert it into land equity. The practical steps are straightforward: the group agrees on an investment policy covering land category, geographic focus, minimum hold period, and income distribution schedule; forms an LLC with an operating agreement drafted by a real estate attorney; designates a managing member responsible for vendor relationships, lease management, and annual reporting; and commits to a first acquisition within a defined timeframe, preventing the initiative from dissolving into indefinite planning. Over time, these peer land partnerships can grow through reinvested income, additional capital calls, and the addition of new members at formally appraised entry valuations. A group that begins with five classmates and 25 acres can, within a decade of disciplined reinvestment, hold a diversified portfolio spanning multiple land categories across several states anchored not by institutional mandate but by the simple decision of like-minded people to build something together.

HBCU alumni associations sit at the intersection of institutional loyalty and latent investment capital. Most chapters hold reserve funds that have been accumulated through dues, fundraising, and event revenue that are parked in bank accounts earning negligible interest. Very few chapters have formalized investment policies, and this represents one of the most tractable missed opportunities in the HBCU ecosystem. An alumni chapter with $200,000 in reserves can, with proper legal structuring, become a founding limited partner in a private land REIT or a land investment LLC alongside other chapters. Five chapters pooling $200,000 each creates a $1 million acquisition fund capable of purchasing 250–500 acres of quality pastureland, timberland, or agricultural ground in rural markets adjacent to HBCUs. That land, leased and managed professionally, generates annual income that returns to the chapters while the underlying asset appreciates. Over a 15-year horizon, the portfolio can be refinanced to fund new acquisitions replicating the leverage cycle that institutional endowments have used with alternative assets for decades. The governance structure matters enormously. An alumni land partnership should be organized as a limited partnership or private REIT with an independent general partner or trustee, clear investment policy statements, annual audited financial statements, and a defined liquidity event horizon. The informality that characterizes most alumni chapter finances is incompatible with institutional land ownership at scale. But with proper structuring, the alumni network becomes what it has always had the potential to be: a distributed institutional investor class with shared objectives and collective bargaining power. Nationally coordinated alumni associations, the general alumni bodies of the major HBCU systems, are positioned to act at an even larger scale. A national alumni association with 50,000 dues-paying members and a modest per-member investment program could capitalize a seven-figure land acquisition fund within a single fiscal year. Structured as a private REIT with a land-grant mission overlay, specifically acquiring land adjacent to 1890 HBCU campuses or in counties with high concentrations of African American agricultural heritage, such a fund would generate financial returns while simultaneously reinforcing the geographic and economic footprint of the institutions themselves.

The structure of land acquisition matters as much as the acquisition itself, and for the African American investor at every level — individual, family, peer partnership, or alumni association — the financing institution is a strategic choice, not merely a transactional convenience. African American-owned banks hold just $6.4 billion in assets, while African American credit unions hold $8.2 billion, meaning these institutions together control less than $15 billion in combined lending capacity despite serving a market of more than 40 million people — insufficient to exert meaningful influence in national credit markets without deliberate capital infusion from within the community itself. When an African American investor finances a land purchase through a Black-owned bank or credit union rather than a mainstream white-owned lender, the mortgage deposit strengthens that institution’s liquidity ratio, expands its lending capacity through fractional reserve multiplication, and keeps the interest income circulating within the ecosystem rather than exiting to a Wall Street balance sheet. Every dollar deposited into an African American financial institution can translate into multiples of additional lending capacity once multiplied through the banking system — meaning that the collective financing decisions of HBCU alumni and community investors are not merely personal financial choices but acts of institutional capitalization. A community that builds land equity through Black-owned financial institutions simultaneously strengthens two pillars of its economic architecture: the land base that generates long-term wealth and the banking infrastructure that finances the next generation of acquisition.

At the institutional tier, the strategic imperative is even more pronounced. As of 2014, Tuskegee University controlled approximately 5,000 acres, ranking 12th among all American colleges in total land holdings, while Alabama A&M (2,300 acres), Alcorn State (1,756 acres), Prairie View A&M (1,502 acres), Kentucky State (915 acres), and Southern University (884 acres) collectively controlled more than 12,000 acres, placing all six among the top 100 college landowners in the United States. Those figures have not been comprehensively updated in the intervening decade, and the actual current land position of these institutions accounting for acquisitions, dispositions, and reclassifications likely differs. What has not changed is the strategic imperative to treat that land base as a productive investment asset rather than passive institutional real estate. A coordinated commitment of $1 million from each of the nineteen 1890 land-grant HBCUs would create a $19 million revolving fund capable, through its placement in African American banks and credit unions, of generating $7–$10 in agricultural lending capacity for every dollar committed financing not just land acquisition but the full productive cycle of African American farming. That mechanism addresses credit access. The complementary challenge is equity accumulation: deploying HBCU endowment capital, alongside alumni and friends’ capital, into the five evergreen land categories through a structured private REIT. An HBCU-anchored land REIT, capitalized with institutional endowment commitments as the senior tranche and alumni association and individual investor capital as subordinate tranches, would create a properly tiered investment structure with aligned incentives. The endowment’s priority return on its senior capital is protected; alumni investors participate in the upside above that hurdle; and the land itself remains in community-aligned ownership regardless of which investor class holds primacy at any given moment. Over time, the REIT’s land holdings can be diversified across all five evergreen categories — timberland for long-horizon appreciation, pastureland and agricultural ground for current income, waterfront parcels for high-appreciation positioning, and recreational property for near-term income generation — creating a portfolio whose income streams are non-correlated and whose asset values compound independently of equity market cycles.

The five evergreen land categories are individually sound investment ideas. Their strategic power for the HBCU community, however, lies not in isolated individual transactions but in the construction of a layered, coordinated ecosystem from the 22-year-old HBCU graduate purchasing her first 20-acre pasture parcel in Alabama, to the alumni chapter launching a multi-state agricultural REIT, to the 1890 HBCUs deploying endowment capital as the institutional anchor of a Black-managed timberland fund. At the most fundamental level, virtually every economic system man has ever created relies on one undeniable truth: whoever controls the land controls the system. The African American institutional ecosystem has the networks, the talent, and increasingly the structured financial vehicles to re-enter land ownership at meaningful scale. What it requires now is the strategic coordination to treat land not as a nostalgic aspiration but as a compounding institutional asset — one deed, one acre, one fund at a time.

Disclaimer: This article was assisted by ClaudeAI.

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Broke & Dating: African Americans Cannot Afford to Date — Nor Can They Afford Not To

Posted on May 5, 2026 by | Leave a comment

“The most important investment you can make is in yourself.” – Warren Buffett

There is a financial contradiction embedded in the romantic lives of African Americans that most personal finance commentators decline to address directly, because addressing it directly is uncomfortable. The contradiction is this: African Americans, as a group, occupy the most economically precarious position of any major demographic in the United States, which makes the cost of courtship a genuine strategic burden — and yet marriage, and the household formation it produces, remains one of the most powerful wealth-building mechanisms available to individuals operating without inherited capital. African Americans cannot afford to date the way the broader culture has normalized dating. And they cannot afford not to.

This is not a romantic observation. It is an institutional and economic one, and it deserves to be examined as such.

The arithmetic is brutal when you sit with it. According to a February 2025 survey by BMO Financial Group, the average American adult spends $2,279 on dates per year, with the all-in cost of a single date from pre-date grooming to gas money estimated at nearly $168. At one date per week, that annualized figure climbs well past $8,700. Set that against an African American median household income that, per the most recent Census data, sits at roughly $52,000 — still last among all major ethnic groups — and courtship is consuming somewhere in the range of 16 to 17 percent of African American median income. No other major demographic group faces that proportional burden. The cumulative cost is not simply personal; it is communal, because money extracted from the African American household through consumption-oriented dating is money that does not compound, does not build equity, and does not circulate within Black institutional ecosystems.

The crisis is compounded by employment fragility. African American men between the ages of 20 and 24 have historically carried unemployment rates roughly double those of their white male peers and these are the years during which romantic partnerships form with the most frequency and social intensity, and also the years of maximum economic vulnerability for the demographic most burdened by the cultural expectation of financing courtship. The collision of maximum relational pressure and minimum economic stability is not accidental. It is structural, and the consequences of navigating it poorly leading to the accumulating debt in pursuit of performed affluence, or deferring the relational investments that ultimately build household wealth reverberate for decades.

What is rarely said plainly enough is that courtship itself, when conducted without financial discipline, functions as a form of capital extraction. Every dollar spent performing prosperity in a relationship like the unnecessary dinner, the performative gift, the vacation financed on credit is a dollar transferred out of a community already operating with the thinnest capital base in the country. The African American community has constructed, over generations, a rich institutional infrastructure: HBCUs, Black-owned financial institutions, fraternities and sororities, professional associations, churches, and community development organizations. The health of that infrastructure depends, at its foundation, on the accumulation of wealth within African American households. Romance, conducted poorly, undermines that foundation directly.

And yet the opposite error of treating financial precarity as a reason to defer relational commitment indefinitely is equally destructive, and arguably more so at the institutional level. Marriage, sociologists have long established, is not merely a romantic arrangement. It is the primary non-institutional mechanism through which ordinary Americans build wealth. The two-income household produces compounding effects on savings capacity that single-income households simply cannot replicate. The married couple that directs dual incomes toward an investment portfolio, a property, a business capitalization, or a child’s education produces generational effects that individual accumulation, however disciplined, rarely matches. Economists studying the racial wealth gap have identified the marriage rate differential between African Americans and other groups as one of the structural contributors to the persistence of that gap not because marriage is morally superior to other arrangements, but because household formation is a capital formation mechanism, and lower rates of stable household formation mean lower rates of capital accumulation across the community.

The data on African American marriage rates is now well established. Black Americans marry at lower rates than any other major demographic group in the country, and those who do marry do so later. The causes are multiple and structural with high male incarceration rates, chronic unemployment disparities, elevated student debt burdens concentrated among Black women who have simultaneously outpaced Black men in educational attainment but the consequences operate as a compounding disadvantage. Every generation that forms fewer stable households is a generation that produces less transferable wealth. Every household that dissolves under financial stress and financial incompatibility remains among the most commonly cited causes of relationship dissolution is a household that fails to produce the institutional legacy it might have otherwise built.

The tension, then, is genuinely bilateral. Dating as currently practiced by too many African Americans is financially unsustainable and institutionally corrosive. But the instinct to disengage from romantic partnership altogether, whether from economic discouragement or cultural frustration, forfeits the most accessible wealth-building mechanism available to people without inherited capital. The resolution of this tension is not a lifestyle choice. It is a strategic discipline.

What that discipline requires, practically, begins with a fundamental reorientation of what courtship is for. In the broader American consumer culture, dating has been commodified into a performance, a sequential escalation of expenditure designed to signal value, demonstrate seriousness, and compete for desirability. That model was designed for, and is subsidized by, demographics with higher income floors and different capital structures. African Americans who adopt it wholesale are importing a financial logic that was never calibrated for their economic reality. The more productive frame is to understand courtship as what it has always been, beneath the cultural noise: an evaluation of partnership potential. The question that dating should answer is not who can perform affluence most convincingly but who can build alongside you most effectively.

The previous guidance this publication offered to HBCU men to be honest about your finances, maintain an emergency fund scaled to the specific vulnerability of African American employment, set expectations within a budget rather than beyond it, and resist the conflation of income with wealth remains sound, but it is incomplete if read only as personal financial advice. Its deeper implication is institutional. The man or woman who enters a serious relationship without financial honesty, without emergency reserves, and without a clear orientation toward asset accumulation is not simply making a personal error. They are entering a partnership that is structurally likely to fail under economic stress, and the failure of that partnership will remove another household from the African American wealth-building ecosystem. The stakes are communal, not merely personal.

The same logic applies to partner selection. This is a dimension of the conversation that cultural politeness often forecloses, but institutional analysis cannot afford to ignore. The choice of a romantic partner is, among other things, a capital allocation decision. A partnership between two individuals who are aligned on financial values, who are both oriented toward asset accumulation rather than consumption performance, and who are capable of the financial transparency that stable households require, produces outcomes that misaligned partnerships simply do not. The HBCU graduate who selects a partner based on emotional chemistry while ignoring or minimizing financial incompatibility is not being romantic they are being strategically imprecise about one of the most consequential decisions they will make. Given the compounding nature of household economics, imprecision here has long time horizons.

This is not an argument for mercenary partnership or the subordination of genuine affection to spreadsheet optimization. It is an argument that the dichotomy between romance and financial strategy is false, and that maintaining it as if it were real is a luxury African Americans, as a community, cannot afford. Other communities have understood for generations that courtship and institutional continuity are related phenomena. The institution of marriage among Jewish American families, which social scientists have identified as one of the structural contributors to that community’s remarkable intergenerational wealth transfer, is not simply an artifact of religious tradition. It is reinforced by a dense network of institutional expectations, community norms, and financial literacy frameworks that treat household formation as a community-level priority rather than a purely private one. The same patterns, in different cultural registers, appear in other communities that have achieved disproportionate wealth accumulation relative to their initial American circumstances.

African American institutions — HBCUs, fraternities, sororities, Black churches, professional associations — have the capacity to play this coordinating role. The HBCU campus, which has historically served not merely as an educational institution but as a marriage market and professional network, is an underutilized asset in this regard. When two HBCU graduates form a household, they are not just creating a family. They are activating a set of institutional networks, alumni relationships, professional associations, and community commitments that have real capital value. When that household builds wealth, and directs that wealth through Black-owned financial institutions, invests in Black-owned enterprises, and contributes to HBCU endowments, it completes a capital circulation loop that strengthens the entire ecosystem. The household is not the end of the story. It is the seed of a much larger institutional project.

But the institutional infrastructure currently available to support that project is insufficient to the scale of the problem. Providing personal finance guidance to individual graduates, or hosting mixers within existing alumni networks, addresses symptoms rather than causes. What is actually required are new institutions purpose-built to treat relationship formation and household financial stability as interconnected civic priorities and the African American community is now beginning to conceptualize what those institutions might look like.

One framework that has emerged from this conceptual work is the proposed Ossie Davis and Ruby Dee Trust, a nonprofit structure designed to treat Black relationship formation as essential civic infrastructure. Rather than addressing individual behavior, it embeds an Institutional Matchmaking Network inside existing Black institutions such as HBCUs, Black Greek-letter organizations, and Black professional societies organizing participants into cohorts around values alignment and life stage rather than the transactional logic of dating apps. Institutional partners would be evaluated not by attendance but by households formed over time. Alongside this, the Trust’s proposed Black Marriage Economic Stabilization Fund directly attacks the structural barriers to marriage formation: student loan interest relief for married participants, down payment matching grants, emergency household stabilization funds, and cooperative legal planning tools. If society subsidizes corporate capitalization through tax structures and preferential credit, there is no principled argument against subsidizing household formation among the demographic most systematically denied access to those same structures.

A second emerging framework addresses what enters the household economically at the moment of formation. The proposed HBCU Alumni Trust would provide every HBCU graduate, at graduation, with a beneficial interest in a professionally managed irrevocable trust generating monthly income distributions for life, with 75 percent accessible and 25 percent mandatorily reinvested, and underlying assets protected by spendthrift provisions for a ten-year vesting period. Its purpose is not primarily about returns. It is about changing the conditions under which graduates enter the courtship market. A graduate carrying a monthly income stream is a categorically different actor than one entering post-graduation life with $40,000 in student debt and no liquidity buffer less likely to perform prosperity they do not possess, less likely to make partnership decisions driven by economic desperation, and more likely to be the kind of financially stable partner around whom a wealth-building household can actually be built.

The version of dating that is making African Americans broke, therefore, is not simply an individual failure of financial discipline. It is a community failure to have built and sustained the normative frameworks, the matchmaking infrastructure, and the financial tools within which courtship is understood as institutional preparation rather than consumption performance. Young African Americans inherit a culture of dating that was not designed with their economic realities or institutional interests in mind. The Ossie Davis and Ruby Dee Trust, the HBCU Alumni Trust, and the broader institutional imagination they represent are attempts to change that inheritance not through cultural policing or moral instruction, but through the construction of institutions that make the financially disciplined, partnership-oriented approach to courtship the path of least resistance rather than the path of greatest sacrifice.

The calculation, ultimately, is not whether African Americans can afford to date. They can, if they do it with discipline, honesty, and a clear-eyed understanding of what partnership is for. The calculation is whether African Americans can afford to continue treating courtship as a consumption category rather than a capital formation strategy and whether the institutions that serve African American life are willing to accept responsibility for building the infrastructure that makes the difference. The evidence of seven decades of compounding wealth gaps suggests, emphatically, that they cannot afford the former. The emergence of institutional frameworks designed to address the structural conditions of Black household formation suggests, cautiously, that some are beginning to accept the latter.

Disclaimer: This article was assisted by Claude AI.

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The Ecosystem We Have Not Built: What the HERD Survey Tells Us About HBCU Research Infrastructure

Posted on May 1, 2026 by | Leave a comment

When you can do the common things of life in an uncommon way, you will command the attention of the world. – George Washington Carver

In Washington, the phrase “support for HBCUs” has become one of the most reliable applause lines in American political life. Presidents invoke it. Appropriations committees cite it. Press releases are issued, summits are convened, and photographs are taken with smiling institutional presidents. And then, year after year, the National Center for Science and Engineering Statistics releases the Higher Education Research and Development (HERD) Survey, the most comprehensive longitudinal dataset tracking university research investment in the United States, and the applause gives way to the same uncomfortable arithmetic.

In FY 2024, 59 HBCUs and affiliated institutions spent a combined $929.2 million on research and development. That is a large number in isolation. It is a devastating number in context. The total national higher education R&D enterprise that same year amounted to $117.7 billion. HBCUs accounted for 0.79% of it which is less than eight-tenths of one percent of the nation’s research investment, for institutions that produce a disproportionate share of Black STEM graduates, pre-medical students, and humanities scholars. The gap between what this figure is and what it should be is not a rounding error. It is a policy failure of the first order. But before laying the entirety of that failure at Washington’s feet, it is worth asking a harder question: how much of it is also self-inflicted?

What is worse than the current number is the trajectory. In 2015, the HBCU share of national R&D stood at 0.82%. In 2024, it stands at 0.79%. Ten years, three presidencies, dozens of executive orders, and multiple congressional funding packages later, the needle has moved — backward. The absolute dollar figures have grown, from $565.8 million in 2015 to $929.2 million in 2024, an increase of roughly 64% over the decade. But that growth is illusory when measured against the expansion of the national enterprise itself. The entire higher education R&D sector grew from $68.7 billion to $117.7 billion over the same period, an increase of 71%. HBCUs did not keep pace. They ran, and the field ran faster.

This is not a partisan observation. The data is indifferent to party affiliation. Under the Obama administration in FY 2015, HBCUs held a 0.82% share. By FY 2016, Obama’s final full year, it had slipped to 0.80%. Under the first Trump administration, the share fell steadily from 0.75% in 2017 to a decade-low of 0.63% in 2020. The Biden era produced the strongest absolute growth — $929 million in 2024 against $542 million in 2020 — but even at its peak, the Biden era only recovered the share to 0.79%, still below the Obama-era baseline. No administration has treated parity as a governing imperative. No Congress has appropriated at the scale the problem requires.

The HERD data makes the scale of the problem legible in a way that press releases cannot obscure. To reach just 1% of national R&D investment, a number that is not ambitious but merely honest, given that HBCUs serve a population roughly 15% of the total undergraduate student body, annual HBCU research expenditures would need to reach $1.18 billion, a gap of $248 million from current levels. To reach 2%, still proportionally below HBCU enrollment weight, the number is $2.35 billion, a gap of more than $1.4 billion annually. At 5%, which is arguably the minimum threshold for serious institutional research competitiveness, the annual requirement rises to $5.89 billion. These are not fantastical projections. They are the arithmetic of what it costs to matter in the modern knowledge economy.

There is one additional data point that every HBCU president, board member, alumni association chair, and development officer should be required to sit with before any other conversation about strategy begins. In FY 2024, 39 individual PWIs each spent more on research and development than all 59 HBCUs combined. Not more per institution. More in total more than $929 million apiece, individually, at 39 separate universities, while the entire organized HBCU sector could not collectively match what any one of them spent alone. Johns Hopkins, the perennial top-ranked research university, spent $4.1 billion on R&D in FY 2024, an amount more than four times the combined output of every HBCU in the country. But Johns Hopkins is not the only comparison that should give pause. The University of Pennsylvania spent $2.2 billion, an amount more than twice the entire HBCU sector. The University of California San Francisco spent $2.1 billion. The University of Michigan spent $2.1 billion. The University of Wisconsin-Madison spent $1.9 billion. These are not the top five institutions in the country by research output simply because they are wealthier or more selective than HBCUs in some abstract sense. They are the top five because they decided, at an institutional level, that research was the primary mechanism through which a university generates long-term power — economic, political, and reputational — and they built accordingly. Each of those five institutions, on its own, individually outspends every HBCU in America combined by a factor of two or more. Ohio State. Texas A&M. These are not exotic outliers. Several of them are state universities with public missions not fundamentally dissimilar from many HBCUs. The difference is not that their researchers are more talented or their communities more deserving. The difference is that somewhere in their institutional histories, research became the mission not a supplement to it. That reorientation produced decades of compounding returns. HBCUs are still debating whether to begin.

The external funding gap is real. But it exists alongside and is partly enabled by a pattern of institutional self-neglect that the HBCU sector has been reluctant to examine with full candor. Too many HBCU administrations, particularly those overseeing graduate programs, have treated research not as a strategic priority but as a grant-chasing appendage: a necessary line item for federal reporting, a credential for accreditation purposes, something the provost manages while the president attends to enrollment and donor relations. The result is an institutional culture in which research infrastructure is perpetually undercapitalized, grant offices are understaffed, and the graduate school — the engine of every serious research university — is treated as a placeholder for undergraduates (the bulk of most HBCU graduate schools are their own undergraduates) rather than the economic generator it is designed to be. This is not an abstraction. It shows up directly in the HERD rankings.

Howard University, the flagship of HBCU research activity, spent $101.8 million in FY 2024, ranking 178th nationally. North Carolina A&T, which has made the most deliberate institutional bet on STEM research, spent $81.8 million and ranked 192nd. Morehouse School of Medicine spent $68.7 million and ranked 212th. Florida A&M spent $68.7 million and ranked 213th. These are the top tier four institutions spending a combined $321 million out of the sector’s $929 million total. The other 55 institutions divided the remaining $608 million, an average of just $11 million each. And that average flatters the distribution considerably. Grambling State University, one of the most storied names in HBCU history, spent $486,000 in FY 2024, ranked 811th nationally, in the 13th percentile. Shaw University spent $452,000. Coppin State spent $304,000. Mississippi Valley State spent $161,000. Jarvis Christian College spent $150,000. These are institutions with graduate programs, loyal alumni networks, and deep community roots. The research numbers they are producing are not the result of limited potential. They are the result of limited prioritization. There is a meaningful distinction between the two, and the sector has been too comfortable blurring it.

The comparison with peer land-grant and regional public universities is instructive and uncomfortable. A regional public university with comparable enrollment to Morgan State or Tennessee State will typically have a dedicated technology transfer office, a research commercialization incubator, multiple endowed research chairs, and a graduate school that is explicitly linked to the institution’s strategic revenue plan. These are not luxuries at those institutions. They are understood as core infrastructure. At too many HBCUs, they remain aspirational bullet points in strategic plans that are never fully funded.

The institutional neglect of research infrastructure does not exist in a vacuum. It is reinforced and in many ways perpetuated by a philanthropic culture among HBCU alumni that directs dollars toward the visible and the sentimental rather than the strategic. Ask an HBCU alumni association what its fundraising priorities are, and the answers are predictable: scholarships, athletics, the marching band, campus beautification, the homecoming experience. These are not illegitimate priorities. Scholarships keep students enrolled. A great homecoming is an institutional identity statement. But they are not the investments that build research universities, and the gap between where HBCU alumni philanthropy flows and where HBCU research infrastructure requires investment is one of the most consequential misalignments in Black institutional life.

The problem is structural and informational. HBCU alumni, by and large, do not know what their institutions’ research portfolios look like. They do not know that their alma mater ranks in the 13th percentile of national research expenditures. They do not know that the graduate school is operating without a dedicated technology licensing office. They have never been presented with a case for why endowing a research chair in computational biology or environmental science would generate more long-term institutional value than another scholarship fund. No one has made that case to them, because the institutions themselves have not fully internalized it. PWI alumni are regularly presented with precisely this framing. Major research universities run sophisticated campaigns explaining to their donor bases that an endowed professorship creates a permanent research income stream, that a gift to a technology commercialization fund can generate licensing revenue that multiplies the original gift, that an investment in graduate fellowships attracts research talent that then generates grant overhead that funds the next generation of infrastructure. The cause-and-effect chain from donation to institutional research capacity to economic output is laid out explicitly. HBCU development offices have, with notable exceptions, not made this case. The result is that HBCU alumni who are themselves scientists, engineers, physicians, and entrepreneurs give generously to scholarships while their institutions’ research infrastructure atrophies. They are loyal donors funding an incomplete vision of what their institutions could be.

The competitive gap is widening not only in research expenditure but in the commercialization infrastructure that converts research into institutional wealth and nowhere is that gap more nakedly visible than in patent production. The National Academy of Inventors publishes an annual ranking of U.S. universities by utility patents granted. In 2024, the University of California system led the country with 540 patents. MIT produced 295. The University of Texas system produced 234. Purdue produced 213. Stanford produced 199. Not one HBCU appears anywhere in the top 100. Not Howard. Not NC A&T. Not Florida A&M. The list runs to 100 institutions and ends with universities holding 14 patents each. HBCUs could not place a single institution on it. This is not incidental. It is the downstream consequence of four and a half decades of abdication from the commercialization economy that the Bayh-Dole Act of 1980 made available to every research university in America. That legislation gave universities ownership of discoveries made with federal research funding — a structural gift that created the legal architecture for technology licensing offices, spinoff companies, and the university-based venture ecosystem that now anchors the innovation economies of entire regions. MIT’s technology licensing office has generated billions in cumulative revenue and been instrumental in creating hundreds of companies. Stanford’s equivalent has returned substantial royalty income to its operating budget and endowment for decades. The institutions that built aggressive commercialization infrastructure around Bayh-Dole are now compounding institutional wealth at a rate that has nothing to do with tuition receipts or annual federal appropriations. HBCUs have largely been bystanders to this transformation for forty-five years. Every year that an HBCU produces federally funded research without a pipeline for commercializing it is a year in which intellectual property that legally belongs to the institution is effectively abandoned. The patents are not filed. The licensing agreements are not negotiated. The spinoff companies are not formed. The wealth that research can generate, wealth that is independent of enrollment cycles, tuition sensitivity, and federal political winds is left on the table. When a major technology company funds a research center at MIT or Carnegie Mellon, it is making an investment in an ecosystem that has already demonstrated the capacity to convert that investment into commercially viable output. That ecosystem produced Google. It produced Genentech. It produced the foundational patents behind industries that did not exist a generation ago. The question for HBCUs is not how to be invited into that ecosystem. Invitation is not the goal, and dependence on the goodwill of institutions that have never prioritized Black wealth creation is not a strategy. The goal is to build a parallel ecosystem; one anchored in HBCU research infrastructure, capitalized through the African diaspora, and oriented toward producing the companies, the patents, and the intellectual property that generate Black institutional wealth on a generational time horizon. The African American community has spending power measured in the trillions. The African continent represents one of the fastest-growing concentrations of capital and technological ambition in the world. The Caribbean and broader diaspora hold resources, networks, and markets that no MIT spinoff has been designed to serve. An HBCU-anchored research commercialization ecosystem, built in genuine partnership with diaspora capital rather than in perpetual petition to federal appropriators, is the architecture through which an African American-owned Google becomes imaginable not as aspiration, but as institutional output. Stanford did not produce Google because it got lucky. It produced Google because it had spent decades building the research infrastructure, the technology transfer capacity, the graduate talent pipelines, and the investor relationships that made commercializable discovery an institutional inevitability rather than an accident. HBCUs have the community. They have the talent. They have, in the diaspora, a potential capital base that dwarfs what most research universities could claim at the moment they began building. What they have not yet built is the infrastructure that converts all of that latent capacity into compounding institutional power. That is the work. And it cannot begin until the sector decides that research is not an afterthought it is the foundation.

None of that ecosystem can be built, however, if the students arriving at HBCU research programs have spent their entire academic formation inside institutions that treated STEM as an afterthought. The research university does not begin at the graduate school. It begins at the pipeline that feeds it. The elite PWI research institutions that dominate the HERD rankings and the NAI patent list are not drawing their graduate talent from underfunded schools with overextended teachers and no competition culture. They are drawing from Phillips Exeter, Phillips Andover, and the constellation of elite preparatory institutions that have spent generations building exactly the kind of STEM competition infrastructure (doctoral-level coaches, state-of-the-art laboratories, national Olympiad pipelines) that produces the researchers who then generate the patents and the companies. The African American community once had more than 100 Black boarding schools. Four remain. The collapse of that infrastructure is not unrelated to the HERD data. It is part of the same story. Rebuilding a network of elite Black private day schools and boarding schools institutions explicitly designed as STEM pipelines into HBCUs and from HBCUs into the research economy is not a separate conversation from the one this article is having. It is the upstream chapter of it. An HBCU research ecosystem capable of producing commercially viable intellectual property requires a feeder system that has been preparing Black students for that level of scientific culture since before they arrive on campus. The Eight Schools Association does not produce Intel Science Fair winners by accident. Neither will HBCUs produce the next generation of research scientists, patent-holders, and technology entrepreneurs without building the institutional infrastructure that makes that outcome systematic rather than exceptional.

The deepest problem, however, is one that no federal grant program and no alumni campaign can solve on its own. It is a problem of institutional identity. Research at most HBCUs is understood as the work of a specific class of people: faculty with PhDs, graduate students, grant administrators. It is not understood as the work of the institution. This is a fundamentally impoverished conception of what a research university is, and it has real consequences for both the quantity and the quality of what gets produced. The most research-intensive universities in the world do not operate this way. At institutions where research is genuinely central to the mission, the orientation pervades the entire organization. The facilities management team understands that their work maintains the physical infrastructure on which research depends. Procurement staff understand that how they manage equipment acquisition and vendor relationships affects the cost-efficiency of the research enterprise. The administrative staff in grant offices understand themselves as investigators’ partners, not their compliance monitors. The groundskeepers and custodial staff who maintain the physical environment of laboratories and research spaces are part of an institution that takes seriously what happens inside those spaces. This is not sentimentality. It is operational culture. And it is the difference between institutions that treat research as a revenue center and those that treat it as a credential.

For HBCUs, the argument for this kind of whole-institution research identity is not merely operational. It is strategic and historical. The communities that HBCUs were built to serve have profound, unmet research needs: in environmental health, in medical outcomes, in economic development, in urban infrastructure, in food systems, in financial services. The proximity of HBCUs to those communities — geographic, cultural, institutional — is itself a competitive research advantage that no PWI can fully replicate. Community-engaged research, participatory research models, place-based longitudinal studies of Black American communities — these are areas in which HBCUs have natural authority. But capitalizing on that authority requires treating research as a whole-institution commitment, not a departmental function. It means building research literacy across every level of the institution. It means having honest conversations, from the boardroom to the grounds crew, about what research is, why it matters, and what the institution loses every year it is treated as secondary. Not because every employee will write a journal article, but because institutional culture is built through shared understanding of institutional purpose. When everyone connected to a campus understands that its long-term capacity to serve its community is tied to its research productivity, the institution begins to function differently. Budget priorities shift. Hiring decisions reflect research capacity. Alumni giving conversations expand beyond the sentimental to the strategic.

The institutions already gaining ground demonstrate the model. Morgan State’s growth from $13.6 million in 2015 to $55.5 million in 2024 — a 309% increase — did not come from waiting on Washington. It came from deciding that research was a strategic priority and building the administrative infrastructure to compete for it. Winston-Salem State’s 840% growth over the same period came from targeting federal health research dollars with institutional precision. Delaware State nearly tripled its portfolio. These trajectories prove the capacity exists.

There are also signs that the sector is beginning to grasp the coordination imperative. On April 29, 2026, fifteen HBCUs announced the formation of the Association of HBCU Research Institutions (AHRI), a national coalition explicitly designed to accelerate research capacity, increase the number of HBCUs achieving R1 Carnegie Classification, and expand collective policy influence. The founding membership includes Howard, the sector’s only R1 institution, alongside thirteen R2 institutions: Clark Atlanta, Delaware State, Florida A&M, Hampton, Jackson State, Morgan State, NC A&T, Prairie View A&M, South Carolina State, Southern University, Tennessee State, Texas Southern, and Virginia State. Collectively, AHRI’s members account for roughly half of all competitively awarded federal research funding among HBCUs. The coalition is co-located with the Association of American Universities and has secured a three-year, $1 million grant from Harvard’s Legacy of Slavery initiative, with Harvard’s Office of the Vice Provost for Research providing technical assistance. The formation of AHRI is the most substantive structural move the HBCU research sector has made in a generation, and it deserves to be recognized as such. But one million dollars over three years, measured against a sector-wide research gap of hundreds of millions annually and a patent economy in which HBCUs hold zero of the top 100 positions, is a foundation, not a solution. The significance of AHRI is not the capital it has raised. It is the architecture it represents — fifteen institutions deciding that isolation is no longer a viable strategy. If that architecture is built upon seriously, capitalized at the scale the HERD data demands, and extended to the 44 HBCU/PBI institutions not yet in the coalition, it becomes the organizational infrastructure through which the ecosystem this article has described can actually be constructed. If it becomes another announcement without a follow-through funding strategy, the HERD Survey will record the same story in 2034 that it has recorded every year since 2015.

But the formation of AHRI also demands a harder question that the coalition’s announcement did not address: how much genuine institutional autonomy do its member institutions actually have? Research strategy is a function of institutional governance. An institution that cannot independently set its research agenda, control its own board appointments, or protect its leadership from politically motivated interference cannot build the kind of sustained, multi-year research infrastructure the HERD data demands regardless of what coalition it joins. This is not a hypothetical concern. Prairie View A&M, one of AHRI’s founding members, operates within the Texas A&M University System, a governance structure in which the flagship institution’s interests, priorities, and resource allocation decisions do not always align with those of a historically Black land-grant whose research mission serves a fundamentally different community. The degree to which Prairie View can pursue an independent research commercialization strategy, build its own technology transfer infrastructure, or make unilateral decisions about patent filing and licensing within that system is a question the coalition’s formation does not resolve. Texas Southern, another AHRI founding member, has experienced more direct interference: its board has been subject to hostile gubernatorial appointments that resulted in the termination of institutional leadership in ways that the broader HBCU community recognized as reflecting political interests rather than institutional ones. Tennessee State has faced comparable dynamics, with the state’s Republican-controlled legislature effectively vacating its board and replacing it with gubernatorial appointees, a maneuver that places the strategic direction of a public HBCU in the hands of an administration with no particular stake in HBCU research excellence. An HBCU that cannot protect its own president, control its own board, or govern its own research agenda is not positioned to build a serious research enterprise regardless of its AHRI membership. The coalition is only as strategically coherent as the institutional autonomy of its members. That autonomy, for several of its founding institutions, is not guaranteed. It is contested.

The structural argument that the data ultimately forces is this: no external actor — no administration, no Congress, no philanthropic initiative operating at current scales — has demonstrated the will to close a gap this large. Replicating and scaling what the sector’s fastest-growing research institutions have done requires HBCU administrations to stop treating their research enterprises as afterthoughts, HBCU alumni to stop treating their philanthropy as sentiment, and HBCU communities to start treating institutional research capacity as what it actually is — a long-term economic and political asset that compounds in value every year it is invested in, and deteriorates every year it is not.

The HERD Survey is updated annually. And annually, the same story is told. The question is whether the institutions that story concerns have finally decided to write a different one.

Data sourced from the National Center for Science and Engineering Statistics, Higher Education R&D Survey (HERD), FY 2015–2024; and the National Academy of Inventors, 2024 Top 100 U.S. Universities Granted U.S. Utility Patents. All HERD expenditure figures are in thousands of current dollars.

Disclaimer: This article was assisted by ClaudeAI.

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Delay As Strategy: Why Democrats Must Stall The Federal Reserve Chair Confirmation Until After The 2026 Midterms

Posted on April 29, 2026 by | Leave a comment

If the Democrats can not hold the line of the Federal Reserve’s independence, then America as we know it is over. The U.S. dollar as the world’s reserve currency will be on life support and foreign countries will be expeditious in the pulling of the plug because trust in the U.S. financial system will be no more. – William A. Foster, IV

Jerome Powell leaves the Federal Reserve on May 15th. His likely successor, Kevin Warsh, is a wealthy former governor with convenient monetary views and a notable reluctance to say obvious things plainly. Democrats have the procedural votes to slow his confirmation. Whether they have the institutional will to use them is a different question and the answer matters more than most people realise.

The Federal Reserve does not often feature in discussions of HBCUs. It should. The interest rate at which a small Black-owned bank in Memphis can borrow money, the credit conditions facing a first-generation homeowner in Atlanta, the yield that a university endowment in Alabama can realistically expect on its bond portfolio: all of these are shaped, in ways direct and indirect, by the policy choices made inside the Eccles Building in Washington. The selection of a new Federal Reserve chair is, among other things, a decision about whose economy gets managed.

That is what makes the confirmation of Kevin Warsh, President Donald Trump’s nominee to succeed Jerome Powell, more consequential than the usual Washington pageant of hearings, hedged testimony, and partisan positioning. Warsh appeared before the Senate Banking Committee on April 21st. By the end of the day, a reasonably clear picture had emerged not just of his monetary philosophy, but of his character. It was not a flattering portrait.

Start with the money, because with Warsh the money is unavoidable. Financial disclosure forms filed ahead of the hearing placed his personal holdings at between $135 million and $226 million, concentrated heavily in two positions in the Juggernaut Fund LP, a vehicle associated with billionaire investor Stanley Druckenmiller, for whom Warsh has worked as a partner. His wife, Jane Lauder, granddaughter of cosmetics entrepreneur Estée Lauder, has an estimated personal fortune of around $1.9 billion. By comparison, Jerome Powell, the man Warsh would replace, disclosed assets of roughly $19.5 million, held mostly in index funds and municipal bonds. Ben Bernanke, who chaired the Fed during the 2008 financial crisis, stepped down in 2014 with assets of at most $2.3 million, mostly in retirement accounts. The message encoded in Warsh’s disclosure is not that rich people cannot run central banks. It is that the man who will make decisions about credit access for working Americans has never had occasion to worry about credit access himself.

The hearing did nothing to soften that impression. Warsh was asked, at one point, a question that should not require courage to answer: who won the 2020 presidential election? The answer is documented, certified by Congress, and not remotely in dispute among anyone operating in good faith. Warsh declined to say it plainly. He noted instead that “this body certified that election”—a formulation so carefully calibrated to avoid displeasing the president who nominated him that it managed to be both technically accurate and substantively evasive. Paul Krugman, the Nobel Prize-winning economist, called Warsh Trump’s “sock puppet.” Senator Elizabeth Warren used the same phrase. The comparison is uncharitable. It is also, on the evidence of the hearing, not easily rebutted.

Warsh was equally reluctant to defend Fed Governor Lisa Cook (Spelman), who faces politically motivated scrutiny from the administration, or to express support for Powell, who is the subject of a Justice Department investigation that Republican Senator Thom Tillis of North Carolina has used as a pretext to block Warsh’s own confirmation vote—a piece of procedural irony that illuminates just how thoroughly this nomination has been consumed by partisan mechanics. A nominee unable to defend his soon-to-be colleagues from transparently political attacks is, at minimum, a nominee who has chosen to demonstrate that loyalty to the president outranks loyalty to the institution he is asking to lead.

What might a Warsh-led Federal Reserve actually look like? The hearing offered some clues, and they are worth examining seriously rather than dismissing as political noise. The Council on Foreign Relations, reviewing his stated priorities, identified three broad themes: a return to the Fed’s core mandate of price stability and maximum employment, a stricter approach to inflation targeting, and a reduced reliance on quantitative easing and forward guidance. None of these is inherently unreasonable as a policy preference. The question is how they interact with the distributional realities of the American economy.

When the Federal Reserve tightens monetary conditions, raises interest rates, reduces the supply of credit, the effects are not equally distributed. Large corporations with investment-grade credit ratings refinance their debt through instruments that most individuals never encounter. Small businesses, particularly those operating in underserved communities with thinner banking relationships, find that credit simply disappears, or becomes prohibitively expensive. Families with secure equity in their homes can ride out a tightening cycle. Families trying to enter the housing market for the first time, often with smaller down payments and less financial buffer, are priced out. African American households, for reasons rooted in decades of discriminatory lending, exclusion from wartime wealth-building programmes, and constrained intergenerational asset transfer, are disproportionately represented in that second group. They enter recessions earlier, recover later, and bear more of the cost of monetary medicine administered for conditions they did not cause.

HBCUs sit at the intersection of several of these vulnerabilities. They operate with endowments that are, on average, a fraction of those at comparable predominantly white institutions partly because their alumni were, for generations, systematically excluded from the wealth accumulation that fuels philanthropic giving. They educate a student population that carries above-average debt loads into a labour market that does not always reward them proportionally. And despite the existence of a network of Black-owned banks and Minority Depository Institutions across the South and Midwest, only two HBCUs currently bank with Black-owned financial institutions. The rest rely on large money-center banks—the same institutions with documented histories of predatory lending to African American borrowers and communities. The irony is structural: HBCUs are among the most visible anchors of African American institutional life, yet their banking relationships run through the very sector that has most consistently extracted wealth from the communities they serve. The monetary environment matters to HBCUs not as a background condition but as an operational reality, and the institutions managing their accounts have rarely been the ones most attentive to their interests.

Into this context arrives a nominee who has, according to an analysis by Employ America, a nonpartisan inflation research group, demonstrated a pattern of supporting tight money when Democrats hold the White House and easy money when Republicans do. Warsh has also expressed the view that productivity gains from artificial intelligence could justify lower interest rates than would otherwise be warranted. That is a philosophically coherent position, though it happens to align precisely with what the current administration has made clear it wants: lower rates, delivered promptly. The convergence of Warsh’s stated views with the president’s stated preferences is, one might say, remarkable in its consistency.

All of which brings the discussion to the Senate, and to the question of what Democrats should do with the leverage they currently possess. The arithmetic is not complicated. Invoking cloture, the procedural step that ends debate and allows a confirmation vote, requires 60 votes. Republicans hold 53 seats. Democrats, including two independents who caucus with them, hold 47. That is more than enough to block confirmation indefinitely. Not to delay it. To block it. The mechanism differs from the Garland blockade when Republicans held the majority in 2016 and simply refused to schedule hearings; Democrats today are in the minority and must deny cloture but the constitutional leverage is equivalent and the outcome is identical. No confirmation without Democratic cooperation. The real obstacle is not parliamentary. It is political. Democrats have a long and costly institutional history of treating procedural restraint as a virtue even when their opponents have long since abandoned the same courtesy, and of discovering, too late, that the other side was keeping score.

Republicans offered the definitive tutorial in this kind of institutional resolve in 2016, when the Senate majority, led by Mitch McConnell, refused to consider President Obama’s nomination of Merrick Garland to the Supreme Court for nearly a year, on the stated grounds that a new president should make the selection. The stated grounds were pretextual. The real grounds were power. The manoeuvre was widely criticised as a breach of constitutional norms. It was also completely effective. The Supreme Court was reshaped for a generation. The lesson drawn by McConnell’s critics that norms of procedural deference were worth preserving regardless of how the other side behaved has not aged especially well. The lesson drawn by McConnell himself, that institutional power belongs to those willing to use it without apology, has proved considerably more durable. Democrats are not in the majority. They do not need to be. They need only hold together, deny cloture, and decline to confirm a nominee who has already failed the most basic test of the job. If Merrick Garland could be refused a hearing on thinner grounds, Kevin Warsh can be refused a confirmation vote on these.

Democrats who delay Warsh’s confirmation need not invent a pretext. The grounds are substantive and readily defensible. The nominee’s financial disclosures are among the most complex ever submitted for this position, listing roughly 1,800 individual assets, many classified under confidentiality agreements that prevent him from identifying the underlying holdings. He has pledged to divest within 90 days of confirmation, but the Senate is not obligated to extend that trust in advance. His confirmation hearing raised, rather than resolved, questions about his independence from the executive branch. A thorough vetting is not obstruction. It is the job.

The midterm elections in November 2026 add a further dimension that Democrats would be foolish to ignore. Monetary policy works with a lag. Rate decisions made in the spring are felt by households in the autumn. A newly confirmed Fed chair eager to demonstrate usefulness to the administration that appointed him would have both the motive and the means to generate a short-term economic improvement—lower mortgage rates, looser credit, a consumer spending bounce—timed to arrive just as voters are making up their minds about which party to support. That Democrats would have facilitated this outcome through premature confirmation is not an argument they would enjoy making to their constituents.

A sustained blockade, by contrast, forces a public conversation about what kind of institution the Federal Reserve should be. It creates an opportunity to put into the congressional record testimony from economists who study monetary policy’s distributional effects, from community bankers who work in markets the Federal Reserve’s balance sheet decisions directly affect, and from HBCU administrators who can explain, in terms that general audiences can understand, how interest rate policy shapes the financial landscape of institutions that serve some of the most economically vulnerable students in American higher education. The Fed’s decisions are made in public. Their consequences for working Americans—and especially for African American communities—are rarely discussed in the rooms where those decisions get made. A confirmation blockade is that conversation, conducted at a volume that cannot be ignored.

The Federal Reserve’s independence is not a natural condition. It is a political achievement, and like all political achievements, it requires active defence from those with the means to provide it. A nominee who cannot bring himself to say who won a presidential election—a question whose answer is written in congressional certification and judicial record—has already told the market, and the public, something important about how he understands that independence. The Senate does not have to accept that answer. Democrats have the votes to reject it. The question is whether they have the will to use them without flinching, without offering off-ramps to colleagues tempted by the false comfort of bipartisan procedural cooperation, and without eventually concluding that confirmation on unfavourable terms is preferable to the discomfort of sustained opposition. It is not. Warsh should not be confirmed. He should be blocked. The precedent for doing so was set by the people now asking Democrats to stand down.

For African American institutions, and for the HBCUs that represent their most durable infrastructure, the lesson is one they have had occasion to learn repeatedly: the rules of the game are made by those who show up and insist on making them. Monetary policy is not race-neutral, however much it presents itself as such. The cost of credit, the availability of capital, the conditions under which wealth can be built and transmitted across generations—these are not technical abstractions. They are the material of institutional survival. The question of who chairs the Federal Reserve is, among other things, a question about whose survival the institution is organised to protect. That question deserves a full and unhurried answer.

Disclaimer: This article was assisted by ClaudeAI.

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The Confederacy of Capital: The Texas Stock Exchange and the Risk of Southern Financial Hegemony

Posted on April 28, 2026 by | Leave a comment

The South never stopped fighting the Civil War. It was the Cold War before the Cold War with USSR and it has been the Cold War after the USSR collapsed. America’s greatest war has always been within. The North, then and for too long thereafter thought it could give an inch and welcome its southern brethren back, but a mile and then some were taken. At this moment, all that remains for the South to conquer is the taking of the North’s financial capital from New York and it will have – checkmate. The South has risen and won. – William A. Foster, IV

The United States has never had a single center of financial power, but it has never had one this far south either. The Texas Stock Exchange — TXSE — formally launching in 2025, is not a regional curiosity. It is the institutional centerpiece of a coordinated effort to reshape who controls the rules of American capital markets, and the African American institutional ecosystem has not yet reckoned with what that means for its long-term economic position.

Founded in 2023 and capitalized with $120 million in initial funding from investors including BlackRock, Citadel Securities, Charles Schwab, and Virtu Financial, TXSE is aiming directly at the New York Stock Exchange and Nasdaq. Its headquarters are in Dallas. Its leadership includes former Texas Governor Rick Perry and former Dallas Federal Reserve President Richard Fisher. Its pitch to potential issuers is a governance environment that its founders describe as more CEO-friendly: reduced compliance requirements, streamlined listing rules, and a posture explicitly hostile to the accountability frameworks that have, however imperfectly, created some structural space for African American institutional participation in mainstream capital markets. For the African American institutional ecosystem — HBCUs, Black-owned banks and credit unions, Black-owned companies, professional associations, and the community development financial institutions that serve communities mainstream finance has historically ignored — this is not a distant policy question. It is a direct threat to the ownership architecture that the community is still trying to build.

To understand TXSE requires understanding the political economy of the modern South, and that requires a historical anchor. During Reconstruction, African Americans built consequential institutional infrastructure against enormous opposition: Black-owned banks, insurance companies, newspapers, and colleges that competed credibly in American economic and civic life. That infrastructure was not dismantled by market forces. It was dismantled by the same mechanism that has constrained African American institutional ownership in every era — control the rules of the game, and you control who benefits from playing it. The Freedman’s Savings Bank collapsed after federal mismanagement stripped depositors of $3 million in assets. The Greenwood District of Tulsa, the most concentrated expression of African American commercial ownership in the country’s history, was burned in 1921 with official sanction. Across the South and beyond, Black-owned enterprises were regulated out of existence, denied credit access, or destroyed. The consistent instrument was institutional architecture — the deliberate construction of financial rules that embedded the interests of one group at the expense of another. The Texas Stock Exchange is that instrument, updated for the twenty-first century.

Texas has rapidly positioned itself as the national headquarters of the movement to strip social and governance accountability from investment and corporate decision-making. In 2023, Governor Greg Abbott signed legislation banning state contracts with any firm that considers environmental, social, or governance factors in its investment decisions. The state legislature has moved to constrain public pension fund managers from incorporating anything beyond narrow financial return metrics, explicitly prohibiting the mission-aligned investing frameworks that community development financial institutions and HBCU-linked endowment vehicles depend on to justify participation in community-anchored development projects. Florida has enacted parallel restrictions. Oklahoma’s state treasurer blacklisted more than a dozen financial institutions for their stated climate commitments. Tennessee, Georgia, and a growing list of other states are constructing the same legal and financial infrastructure, all oriented toward the same goal: a parallel financial order governed by Southern political priorities, insulated from federal regulatory oversight and from the investment norms of the institutions that have grudgingly made room for African American institutional participation. What HBCU Money has documented over years of covering African American institutional finance by highlighting the slow erosion of Black-owned banks, the chronic undercapitalization of HBCU endowments, the failure of institutional capital to circulate within the African American ecosystem is now confronting a coordinated counterforce operating with the full backing of state governments, sovereign-scale endowments, and the largest names in global finance.

TXSE’s proposed listing standards deserve careful scrutiny because their effect on African American institutional economic participation is structural, not incidental. The exchange plans to impose earnings tests and revenue thresholds that would disqualify an estimated thirty percent or more of companies currently listed on Nasdaq, a category that includes a disproportionate share of minority-led, cooperatively structured, mission-driven, and early-stage enterprises. The cooperative structures, community development financial institutions, and early-stage technology firms that represent the growth edge of African American institutional economic activity are precisely the kinds of entities these standards are calibrated to exclude. Simultaneously, Texas has enacted legislation limiting shareholder lawsuits unless investors own at least three percent of a company’s shares. That threshold effectively neutralizes most activist shareholders, including African American pension funds, HBCU endowment investment vehicles, and minority-focused fund managers that rarely accumulate the concentrated positions necessary to meet that bar. The combination is a governance architecture designed to concentrate power among already-powerful institutional insiders and to diminish the accountability levers that African American institutional investors have worked to develop. This is not an accident of design. It is the design.

The University of Texas Investment Management Company — UTIMCO — manages the combined endowments of both the University of Texas System and the Texas A&M System. Together, these pools constitute one of the largest publicly managed academic endowment complexes in the United States, surpassing Harvard in combined assets under management. UTIMCO has, under sustained pressure from the Texas conservative political establishment, moved aggressively to align its investment posture with the ideological priorities of state leadership. It has reduced exposure to investment vehicles that incorporate social or governance accountability factors and directed assets toward domestic energy production, real estate, and financial instruments consistent with what its political overseers consider appropriate. UTIMCO’s scale gives it significant market-moving influence. Its alignment whether formal or informal with the TXSE project represents a formidable concentration of institutionally managed capital operating explicitly outside the accountability frameworks that African American institutional investors have built their participation strategies around. HBCU endowments hold a combined base that, while growing, remains dwarfed by what UTIMCO alone commands. The strategic implication is direct: when the largest endowment systems in the South are operating with an investment philosophy that excludes the governance accountability frameworks African American institutions depend on, the negotiating position of those institutions in the broader capital market is weakened.

The direct risks to African American institutional ownership are compounding across three distinct dimensions. The first concerns the exclusion of Black-led enterprises from the visibility, liquidity, and valuation premiums that accompany public market access. HBCU Money has documented that African American-owned employer businesses generated $212 billion in combined revenue in 2022 — a figure that, while representing meaningful growth, amounts to 0.43 percent of total U.S. business revenue for a community that constitutes over fourteen percent of the population. The exchange listing premium with the ability to attract institutional capital, establish a public valuation, and access the equity markets for growth financing has historically been one of the structural mechanisms that translates enterprise scale into compounding institutional wealth. TXSE’s listing standards are calibrated against the cooperative enterprises, CDFIs, and early-stage technology firms at the growth edge of African American institutional economic activity. Without access to a major exchange platform, these firms face persistent disadvantages in attracting the institutional capital that would allow them to scale. Over time, this structural exclusion deepens the ownership gap not through any single discriminatory act, but through the cumulative operation of market design.

The second dimension of risk concerns HBCU endowments and the broader African American institutional investment ecosystem. As HBCU Money has reported, African American-owned banks currently hold approximately $6.4 billion in combined assets — down from forty-eight institutions in 2001 to just seventeen today, and down from a peak share of 0.2 percent of total U.S. banking assets in 1926 to 0.027 percent today. HBCU endowments are managed, in most cases, through large fund managers some of whom are direct investors in the TXSE. As the exchange scales and as its listed companies grow in market capitalization, passive investment vehicles and actively managed funds will increasingly hold TXSE-listed assets as a matter of index composition and portfolio construction. HBCU endowment pools, pension funds serving African American public employees, and investment vehicles managed on behalf of Black institutional clients could find themselves indirectly capitalizing an exchange whose structural design, governance philosophy, and political alignment work against African American institutional interests. Annual interest payments transferred from Black households to non-Black financial institutions are estimated at approximately $120 billion — more than half of what all Black-owned businesses generate in revenue in an entire year. TXSE’s governance model is structured to compound that dynamic, not to reverse it.

The third and most consequential dimension concerns the governance architecture within which African American institutional ownership operates in publicly listed companies more broadly. The decades-long effort to increase African American representation in corporate governance, to build institutional investor coalitions capable of pressing for equitable accountability, and to develop shareholder advocacy tools that translate institutional capital into institutional voice has depended on an exchange and regulatory environment that, however reluctantly, created minimum conditions for accountability. TXSE’s governance philosophy centered on limiting shareholder litigation, reducing disclosure requirements, and eliminating the governance frameworks that allowed accountability advocacy to function would, if it achieves the national scale it is pursuing, erode the leverage that African American institutional investors have slowly accumulated. This is not a threat to abstract norms. It is a threat to the concrete mechanisms through which African American institutional capital translates into institutional power.

There is a cultural branding dimension to TXSE that should not be dismissed as mere marketing, because culture and capital are not separate categories they are the same category expressed differently. TXSE supporters have embraced the ‘Y’all Street’ branding, positioning Dallas as the spiritual and institutional opposite of what they call ‘woke capital.’ The slogans — ‘Texas roots. Global reach,’ ‘Built for CEOs, not bureaucrats’ — are explicit declarations of institutional identity. They communicate to potential issuers what governance norms the exchange will enforce, and they communicate to African American institutional stakeholders what norms will be conspicuously absent. An exchange that markets itself as the home of American finance divorced from social accountability is not making a neutral statement about regulatory philosophy. It is announcing its constituency. For the African American institutional ecosystem, that announcement should carry the same interpretive weight as any other structural signal about where capital will and will not flow.

The strategic response available to African American institutions is not the construction of a competing exchange. That framing misreads both the competitive dynamics of exchange infrastructure and the actual leverage points available. Exchanges are winner-take-most infrastructure. TXSE enters the market with $120 million in capitalization, the institutional backing of the largest names in global finance, and the network effects of a state government willing to direct sovereign-scale endowment capital in its direction. A Black-led exchange starting from zero cannot compete with that on equivalent terms in the near term, and proposing otherwise is not strategy — it is aspiration dressed as a plan. The more consequential response is coordinated institutional non-participation: the deliberate, organized withdrawal of African American institutional capital from TXSE’s orbit, combined with the systematic redirection of that capital toward institutions and instruments that serve African American ownership interests. This is not the high road. It is the only road with actual traction.

Executing that response, however, requires an honest accounting of which African American institutions are actually free to act and that accounting begins with the distinction between public and private HBCUs. The majority of HBCUs are public institutions, and the majority of public HBCUs are located in precisely the Southern states that are constructing the Southern Capital Doctrine. Southern University operates under the authority of the Louisiana Board of Regents. Florida A&M is a Florida state institution. North Carolina A&T, Prairie View A&M, Alabama State, Jackson State each operates within a state governance structure that gives hostile state legislatures direct leverage over budget, investment policy, and institutional positioning. These institutions cannot unilaterally reallocate endowment assets, cannot take public institutional positions against the financial policies of their host states, and in many cases cannot even direct their banking relationships without navigating state procurement rules that route dollars away from Black-owned institutions. Asking public HBCUs to lead the charge against TXSE is asking institutions to act against the direct interests of the governments that control their operating budgets. That is not a realistic foundation for strategy.

The private HBCUs occupy a structurally different position. Howard, Morehouse, Spelman, Hampton, Tuskegee, Xavier, Dillard, and their peer institutions have independent governance, control their own endowment investment decisions, and face no state legislative veto over their financial positioning. They are the tier of the HBCU ecosystem with the freedom to act directly to reallocate endowment capital away from fund managers backing TXSE, to direct institutional deposits toward Black-owned banks, to take explicit public positions on exchange governance policy, and to convene the broader institutional conversation that a coordinated response requires. The scale of their endowments, while modest relative to their peer institutions in the broader higher education landscape, is sufficient to establish meaningful momentum if directed in concert. Howard University’s endowment alone, if managed with the strategic intentionality that this moment demands, could anchor a coalition capable of making market-visible moves. Private HBCUs have the freedom that public HBCUs do not. The question is whether they will exercise it.

But the public HBCU ecosystem is not, for this reason, strategically irrelevant. It simply operates through a different institutional layer one that is frequently overlooked precisely because it does not appear on the official organizational chart. Every public HBCU has an alumni association that is legally and operationally independent of the institution itself. Every public HBCU has a foundation, a separately incorporated philanthropic entity with its own board, its own investment decisions, and its own capacity to act without state legislative approval. The Prairie View A&M National Alumni Association is not a Texas state agency. The Southern University Foundation is not subject to the Louisiana Board of Regents. The alumni associations and foundations of public HBCUs can bank with Black-owned financial institutions, direct philanthropic capital toward CDFIs, take public positions on financial policy questions, and coordinate with private HBCUs in ways that the institutions themselves cannot. If that coordination is sufficiently explicit and sustained, the functional effect is equivalent to the institution acting even though technically it is not. This is not a workaround. It is how every other community with sophisticated institutional strategy operates. The university cannot endorse a candidate. The alumni PAC can. The university cannot divest from a financial institution. The foundation can choose where to bank. The structure already exists. It simply has not been deployed with this level of strategic intention.

This layered architecture suggests a three-tier framework for the African American institutional response to TXSE. The first tier consists of private HBCUs acting as direct institutional agents reallocating endowment capital, directing deposits, and convening the policy conversation. The second tier consists of public HBCU alumni associations and foundations acting as coordinated proxy agents making the investment and banking decisions the institutions themselves cannot make, in deliberate alignment with the strategic direction being set by private HBCUs in the first tier. The third tier consists of the broader African American institutional network — Black-owned banks and credit unions, Black-owned firms, the Thurgood Marshall Fund and UNCF, the HBCU Faculty Development Network, African American professional associations, and African American-controlled pension and foundation assets — functioning as the connective tissue that allows the first two tiers to operate in concert without requiring any single institution to take a politically exposed position alone. Jewish American institutional strategy has operated through exactly this kind of layered coordination for generations. Korean rotating credit associations, Indian American technology sector networks, and Irish American political machines have each built equivalent structures calibrated to their specific institutional contexts. The African American community has all of the institutional components. It has not yet assembled them into a coordinated response mechanism.

On the question of regulatory engagement, intellectual honesty requires acknowledging the political environment directly. Petitioning the current Securities and Exchange Commission for intervention in TXSE’s governance standards is not a realistic near-term lever. The present administration’s posture toward exchange regulation, and toward the financial accountability frameworks that any such petition would invoke, makes meaningful regulatory relief under current leadership implausible. The more strategically sound approach is to build the legal and analytical record now to commission the research, document the structural exclusions, develop the regulatory theory, and position African American institutional stakeholders to arrive at a future administration’s SEC with a fully developed dossier rather than a reactive complaint. This is not passivity. It is the institutional discipline of building for the long game. Every dollar spent on legal analysis and regulatory documentation today is leverage that compounds when the political environment changes. TXSE is not going away. Its governance standards will be litigated and legislated over decades, not months. The community that has done the analytical work in advance will have the most influence over how that process resolves.

The parallel long-term aspiration deserves to be named more precisely than a vague commitment to Black-led exchange infrastructure and the most strategically coherent version of that aspiration points not inward but outward, across the Atlantic. The American Depository Receipt, the financial instrument that allowed foreign companies to list on U.S. exchanges without a full domestic registration, was built on a single insight: capital markets are not inherently bounded by national borders, and the right legal architecture can bridge them. That insight has historically flowed in one direction toward the United States, which offered the world’s deepest and most liquid capital markets, and therefore attracted the world’s enterprises seeking valuation and investor access. The generational goal for African American institutional finance is to reverse that directionality. Not to build a competing domestic exchange that fights TXSE on its home turf, under SEC jurisdiction, subject to the same regulatory environment TXSE is actively reshaping in its favor but to develop what might be called African Depository Receipts: a parallel instrument that would allow African American enterprises to list on African exchanges, access African institutional capital, and build the financial architecture of a genuinely transnational diaspora economy.

The mechanics of this idea deserve serious analysis rather than dismissal. The Ghana Stock Exchange, the Johannesburg Stock Exchange, the Nigerian Exchange Group, and the Rwanda Stock Exchange each represent meaningfully different regulatory environments, liquidity profiles, and investor bases and none of them, individually, yet offers the depth of the U.S. exchanges. These are not trivial complications. Currency risk, repatriation structures, cross-border regulatory compliance, and the still-developing institutional investor base on the continent are real structural challenges that any African Depository Receipt framework would need to address directly. But the original American Depository Receipt confronted equivalent complications when it was developed in 1927 to allow British investors to hold shares in American companies without navigating U.S. custodial arrangements directly. The instrument was built to solve exactly the kind of cross-border structural problem that an African Depository Receipt would need to solve today. The complications are engineering problems, not fundamental objections.

What makes this more than a financial instrument is the diaspora dimension that no domestic exchange alternative can replicate. African American businesses listing on African exchanges are not merely accessing a different pool of capital they are creating the institutional infrastructure for transnational capital flows that currently have no formal mechanism. They are building the financial architecture of the relationship between the African continent and its diaspora that has been gestured at politically and culturally for generations but never operationalized at the level of institutional ownership and capital markets. An African American technology firm listed on the Ghana Stock Exchange is not making a symbolic statement about Pan-African solidarity. It is creating a vehicle through which Ghanaian pension funds, South African institutional investors, and Nigerian family offices can hold ownership stakes in African American enterprises and through which African American institutional capital can flow toward African markets with the legal infrastructure, fiduciary accountability, and liquidity mechanisms that serious institutional investment requires. This is the financial architecture of diaspora strategy. It is what other transnational communities have built, in their own ways, over generations. The Irish American political machine was not just about elections it was about building the institutional relationships that made capital flow between Ireland and its diaspora. The Indian American technology network is not just about talent it is about the ownership and capital relationships that connect Silicon Valley to Bangalore. African American institutional finance has the community, the capital base, and increasingly the institutional sophistication to build an equivalent structure. The African Depository Receipt is the mechanism through which that structure becomes real.

This is honestly a twenty-year project. It requires the diplomatic groundwork of building formal relationships between African American institutional stakeholders and African exchange regulators and finance ministries. It requires the legal architecture of cross-border custodial arrangements, currency hedging instruments, and repatriation structures that protect both issuers and investors. It requires the development of African institutional investor capacity — African pension funds, sovereign wealth funds, and family offices — to the point where they can absorb meaningful African Depository Receipt issuance. And it requires the cultivation of African American enterprises of sufficient scale and governance maturity to make credible exchange listings. None of that is impossible. All of it takes time. The community should be building toward it now through the HBCU international programs and African studies centers that can develop the human capital, through the Black-owned financial institutions that can begin building the correspondent banking relationships, and through the private HBCU leadership that can convene the cross-institutional conversations this kind of generational commitment requires while executing the near-term response to TXSE through the levers it actually controls today: institutional non-participation in TXSE’s capital orbit, coordinated redirection of African American institutional deposits and endowment capital, and proxy action through alumni associations and foundations.

The Texas Stock Exchange is the latest iteration of a pattern that has defined African American economic history: rules written by others, in institutions controlled by others, to serve interests that have never included African American institutional ownership as a priority. The community’s $7.1 trillion in household assets, its $1.3 trillion in annual consumer spending, its $212 billion in employer-business revenue — none of that capital produces compounding institutional power without the ownership infrastructure to retain and redeploy it. African American-owned banks hold 0.027 percent of total U.S. banking assets. African American businesses generate 0.43 percent of total U.S. business revenue. HBCU endowments represent a fraction of what peer institutions hold. These are not cultural facts. They are ownership facts. And an exchange designed to deepen the concentration of institutional ownership among those who already hold it is not neutral infrastructure. It is a structural threat that demands a structural response not an aspirational one, but a concrete, coordinated, institutionally grounded one, built from the realistic assessment of which institutions are free to act, through which channels, and toward which ends.

The Confederacy never formally dissolved its ambitions. It adapted its instruments. Where it once used literacy tests to suppress political participation, it now uses listing standards and shareholder litigation thresholds to suppress institutional financial participation. Where it once burned Greenwood, it now writes exchange governance rules that make the next Greenwood structurally impossible to capitalize. African American institutions that understand this history have both the analytical framework and the institutional capacity to respond. The only remaining question is whether the community’s institutional leadership will treat the emergence of the Texas Stock Exchange with the strategic seriousness (threat) it deserves and whether it will organize that response through the institutions that are actually free to act, rather than waiting for the ones that are not.

Sidebar: A Three-Tier Response Framework for African American Institutions

TierInstitutionsAvailable Actions
Tier 1: Direct ActorsPrivate HBCUs — Howard, Morehouse, Spelman, Hampton, Tuskegee, Xavier, DillardReallocate endowment capital away from fund managers backing TXSE; direct deposits to Black-owned banks; take public positions on exchange governance; convene cross-institutional strategy
Tier 2: Coordinated Proxy ActorsPublic HBCU alumni associations and foundations (independent of state governance)Bank with Black-owned financial institutions; direct philanthropic capital toward CDFIs; coordinate investment decisions in alignment with Tier 1 strategy; build public record on regulatory exclusions
Tier 3: Connective TissueBlack-owned banks and credit unions; fraternities and sororities; NAACP; Urban League; African American professional associations; African American-controlled pension and foundation assetsAggregate capital flows away from TXSE ecosystem; build and fund legal/analytical dossier for future regulatory engagement; sustain coordinated non-participation pressure across the institutional network

Note on regulatory strategy:

SEC engagement under the current administration is not a realistic near-term lever. The priority now is building the legal record, regulatory theory, and analytical documentation needed to engage a future administration’s SEC with a fully developed dossier. The generational goal is the development of African Depository Receipts — instruments allowing African American enterprises to list on African exchanges including the Ghana Stock Exchange, Johannesburg Stock Exchange, Nigerian Exchange Group, and others — creating the financial architecture of a transnational diaspora economy. This is a twenty-year project requiring diplomatic groundwork, cross-border legal architecture, and African institutional investor development. HBCU international programs, Black-owned correspondent banking relationships, and private HBCU leadership convening are the near-term building blocks.

Disclaimer: This article was assisted by ClaudeAI.

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