Performance-based funding (PBF) resurfaced in American higher education state funding planning after the 2008 recession. PBF is designed to address greater accountability of taxpayers' dollars and centered on the premise to be a vehicle for eliminating the workforce skills gap. This study reviews the scholarly research addressing the implications of PBF on student success outcomes for underrepresented students attending rural community colleges. It is believed to indirectly address educational disparity for underrepresented students in higher education. This study defines underrepresented students as students of color, low-income, first-generation, or adult learners exposed to at least one economic hardship, e.g., personal or environmental. This qualitative research study details the research findings illustrating the links to PBF and student success outcomes. The multi-case study is conducted using two sources: secondary source data of six-year performance outcomes from 10 rural community colleges and semi-structured open-ended interviews with community college presidents engaged in decision-making as well as advocacy practices. The research population is rural Texas community colleges. The study centers on the resource dependency theory which provides a theoretical framework to further understand the causal effect of certain conditions determining indirect or direct outcomes (Fowles, 2014; Reddy, 2014). The root cause analysis reaffirms the catalyst to improving performance outcomes of underrepresented students in rural community colleges is predicated on systematic policy changes to (a) increase academic effectiveness, (b) address equity gaps, and (c) redefine funding appropriations. Finally, the implication of practice, evidence-based recommendations for community college presidents, and suggestions for further research are provided in the study. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]