A new report from McKinsey and Company, a global management and consulting firm, argues that increased funding for historically Black colleges and universities could help close the racial wealth gap, diversify the American workforce and benefit the national economy.

The report projects that that if HBCUs enrolled, retained and graduated more students, the institutions could yield a $10 billion-per-year increase in Black worker incomes on whole. The growth of HBCUs could also translate into $1.2 billion in incremental business profit, an additional $1 billion in consumer spending and a $300 million reduction in student loan debt, according to the report.

HBCUs disproportionately propel graduates into higher-earning careers, the report finds. The institutions make up 3 percent of American colleges and universities, and the average HBCU had an endowment value seven times less than the average non-HBCU between 2018 and 2019. Yet…

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