Performance-based funding policies for postsecondary institutions have been enacted throughout the United States as an answer to reductions in public funding and increased accountability mandates. Institutional effectiveness, as demonstrated through metrics such as graduation and retention rates, dictates the level of funding received. Educational leaders can facilitate student success and institutional viability by strategically utilizing financial resources. This study aimed to determine if a statistically significant relationship exists between graduation rates of first-time, full-time students attending publicly-funded four-year degree-granting HBCUs and institutional expenditures made for academic support, instruction, and student services. This quantitative analysis used multiple regression to address six hypotheses. The Integrated Postsecondary Educational Data System (IPEDS) was used to obtain institutional expenditure and graduation rate data. The study identified a statistically significant relationship between four- and six-year graduation rates and instruction expenses. Additionally, a statistically significant negative correlation existed between four-year graduation rates and academic support expenses, and six-year graduation rates and student services expenses. Recommendations for further research include expanding the sample to include all HBCUs and expenditure categories. [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.]