Though they have experienced recent enrollment declines, historically, community colleges (i.e. public two-year colleges) have served a larger portion of undergraduates than any other institution type. They also serve a more diverse group of students than other institution types and do this with less funding, on average, than four-year institutions. Community colleges may also rely on the state for a larger portion of their funding than institutions in other sectors. Among public two-year colleges, 188 are classified as Hispanic-Serving Institutions (HSIs), 11 are Historically Black Colleges (HBCs), and 34 are Predominantly Black Institutions (PBIs) (Nguyen et al., 2023). Recent research suggests that inequities may also exist within sectors across institutions, with Minority Serving Institutions (MSIs) receiving less funding per-pupil, on average, than institutions that primarily serve white students (PWIs) (Knott, 2023). Inequities in access to public funding are particularly problematic if changes in institution-level funding affect student persistence and completion. Though a growing body of literature estimates the causal effect of changes in institutional funding on student outcomes (Bound & Turner, 2007; Deming & Walters, 2017), not all studies include community colleges and, seemingly, no study explicitly explores the relationship between funding, spending and student outcomes at public two-year MSIs. This paper starts to fill this gap in the literature. Making use of data from the Integrated Postsecondary Education Data System (IPEDS) from 2014 to 2020, the authors estimate the causal effect of MSI-targeted grants on college spending and student outcomes at HSIs and PBIs. Specifically, they will answer the following research questions: How does receiving MSI-targeted funding affect college spending and student outcomes at public two-year MSIs? How does this vary by community college subgroup (HSI or PBI)?