Purpose: The purpose of this article is to conduct a critical race policy analysis of Texas school finance policy. This empirical article examines three chapters of the Texas education code (TEC) and identifies the racial effects that the school funding system has on seven majority-Mexican American school districts. Methodology: Critical Race Theory (CRT) and Latina/o Critical (LatCrit) theoretical frameworks are employed in this article in which race and property are highlighted as concepts central to the analysis. The methodology allows for a critical perspective on history and the racial effects of policy to be outlined. First, a historical analysis of race and racism, schooling, and politics in Texas contextualizes the debate over school finance equity. Second, an analysis of the effects that the school finance system has on communities of color is completed. Analysis and Findings: An examination of primarily 2002-2003 school finance data, Texas Supreme Court opinions, and TEC indicates that majority-Mexican American school districts are disadvantaged by Texas school finance policy. Whether it is operational, maintenance, or facilities funding, the school finance system institutes inequity. (Contains 10 tables and 17 notes. The following are appended: (1) Fifty Poorest School Districts as Measured by the Texas School Finance System; and (2) Fifty Wealthiest School Districts as Measured by the Texas School Finance System.)