This paper examined how performance-based funding (PBF) policies shape institutional performance and student outcomes for public four-year or above historically Black colleges and universities (HBCUs). By conducting a systematic review of the literature, the findings expanded on two main areas, as underscored by the pieces reviewed: (a) how the implementation of PBF policies across states impacts public four-year or above HBCUs, and (b) the intended and unintended consequences of PBF policy on public four-year or above HBCUs. The review of the literature largely indicated that public HBCUs continue to feel the burden of long-term disinvestment and lack of policy planning that is attentive to their histories, mission, and needs. Although researchers are still evaluating the impact of PBF policies on institutional performance and student outcomes based on PBF 2.0, the literature has affirmed that PBF 1.0 has negatively impacted student performance, raising several concerns about the future of HBCUs.