Elites in the antebellum U.S. South faced persistent protest by enslaved Americans. Elites sought to quell that threat through policing, but success relied on the participation of non-slaveholding Whites. I hypothesize that elites encouraged non-slaveholders’ compliance by offering policy concessions, specifically, school funding. Novel data from North Carolina show that the state distributed more school funds to counties where more enslaved people lived, and that elites in those counties raised more school taxes. I then proxy for slave escape with the location of escape routes and find that elites also raised more taxes in densely enslaved counties containing escape routes. Alternative explanations rooted in electoral incentives or education preferences cannot account for the funding patterns, and data from the 1850 U.S. census suggest that the theory may extend to the rest of the South. The paper illustrates how elites can leverage public funds to preserve power in ethnically diverse settings.