States are increasingly funding higher education institutions based on their performance or outcomes instead of relying solely on student enrollment to determine funding formulas. Performance Funding (also called Performance-Based and Outcomes-Based Funding) policies provide state support to public colleges and universities based on outcome measures using input metrics like incoming student composition, progress metrics like retention rates, and output metrics such as graduation rates. As states increasingly allocate higher education funds based on measures of institutional performance, there must be a critical consideration of the implications of such funding models for campuses with unique missions and/or student populations, like Minority-Serving Institutions (MSIs). The aim of this policy report is to discuss the considerations for MSIs in state Performance Funding policy development. In addition, the report provides policy makers with a typology of metrics, including those that have been used in previous and existing state Performance Funding policies to address issues of equity and diversity and specific institutional types like MSIs, Community Colleges, and Research Universities. The report provides a framework for policy makers developing Performance Funding formulas. The report contains the following appendices: (1) Typology of Performance Funding Metrics; (2) Complete List of Public Minority-Serving Institutions by State; and (3) Student of Color Enrollment at Public Minority-Serving Institutions.