progress is progress

Texas ranks as state with 2nd most racial progress by 2024, study finds

The annual report is released in conjunction with Martin Luther King, Jr. Day.

Photo courtesy MLK Center

As Martin Luther King Jr. Day approaches, personal finance website WalletHub is revisiting its annual report "States with the Most Racial Progress." Texas comes out near the top for 2024, but has room for improvement in several areas.

The report measures the gaps between Black and white residents across 22 key indicators of equality in all 50 states and the District of Columbia to determine the rankings. States are scored in four major categories: employment and wealth, education, social and civic engagement, and health. For the purpose of the study, "adults" include people aged 25 and older.

Texas ranks No. 2 overall in racial progress, placing just behind Georgia (No. 1). But in the study's separate ranking of states with the most racial integration, Texas lands farther down the list, at No. 8.

The racial progress report highlights the Lone Star State's efforts to reduce health insurance coverage gaps between white and Black residents – stating that the divide has reduced more than 13 percent within the last three decades. Improving higher education is another major milestone for the state, the study says.

"Texas has made some of the best progress in the nation when it comes to the share of black vs. white residents who have at least a bachelor’s degree," the report's author writes. "In fact, it’s one of the only states where the gap has decreased rather than increasing since 1970."

Texas earns top-five rankings in the the categories of education (No. 4) and health (No. 4), and ranked No. 6 in the study's social and civic engagement category. The state falls slightly behind in the employment and wealth category, ranking No. 13 overall.

Texas saw the most change in the following measures "over time":

No. 7 – Median annual household income gap
No. 10 – Poverty rate gap
No. 8– Percentage of adults with at least a high school diploma
No. 4 – Percentage of adults with at least a bachelor's degree
No. 11 – Standardized test scores gap
No. 10 – Voter turnout gap during the 2020 presidential election

According to a 2023 survey by the Pew Research Center, 44 percent of Americans say they feel pessimistic about the nation's "ability to ensure racial equality for all people" in the future, regardless of race or ethnicity. That's compared to 28 percent who feel optimistic.

"Although our country has made a lot racial progress since the Civil Rights Movement, we still need to do better to ensure equality for everyone," the WalletHub report says. "As we think about ways to improve equality in the future, though, we can also recognize the steps toward racial harmony we’ve already achieved — in our workplaces, in our schools and in our voting booths."

Following behind Texas to round out the top 10 states with the most racial progress in 2024 are Mississippi (No. 3), New Mexico (No. 4), Wyoming (No. 5), Connecticut (No. 6), New Jersey (No. 7), Maryland (No. 8), Florida (No. 9), and North Carolina (No. 10).

The report and its methodology can be found on wallethub.com.

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closing the gaps

Texas leads U.S. as No. 1 state for racial progress in 2025, per study

Texas African American History Memorial in Austin, Texas

Photo by Pete Alexopoulos on Unsplash

Texas has made great strides.

The Lone Star State has proven its commitment to improving racial equality for every Texan, according to WalletHub's 2025 ranking of "States with the Most Racial Progress." Texas has moved up into the No. 1 spot after ranking No. 2 in 2024.

The annual report measures the gaps between Black and white residents across 22 metrics of equality in all 50 states and the District of Columbia to determine the rankings. States are scored across four main categories: employment and wealth, education, social and civic engagement, and health. Texas' No. 1 place refers to improvement over time, not overall better performance.

Texas earns top-five rankings in the the categories of health (No. 3) and education (No. 4), and ranks No. 8 in the study's social and civic engagement category. The state falls slightly behind in the employment and wealth category, ranking No. 13 overall for the second consecutive year.

WalletHub specifically praises Texas for its dedication to closing the health gaps between its white and Black residents. The report says Texas has reduced health insurance coverage gaps by 12.4 percent over the last three decades, and has lowered the share of Black residents that are "suffering from poor health and diabetes."

The state has also made progress with closing gaps in its business sector and the criminal justice system, the study found.

"For example, between 2002 and 2021, the gap in business ownership between white and Black residents decreased by 6.4 percentage points, the sixth-largest decrease in the nation," WalletHub said. "The disparity in the share of business executives who are white vs. Black also decreased by close to 8 percentage points, the seventh-largest decrease."

The report continues, "Finally, Texas is the fourth-best state when it comes to making racial progress in the parole system, which is important since Black people have faced a lot of discrimination in the criminal justice system throughout history."

In a similar ranking of states with the most racial integration, WalletHub ranked Texas No. 5 overall, marking a three-place improvement since 2024.

"Although the U.S. has made a lot of progress toward racial equality since the Civil Rights Movement, we still need to do better to ensure equal opportunities for everyone," the report said. "As we think about ways to improve equality in the future, we can also recognize the steps toward racial harmony we’ve already achieved — in our workplaces, in our schools and in our voting booths."

The top 10 states with the most racial progress in 2025, according to WalletHub, are:

No. 1 – Texas
No. 2 – Wyoming
No. 3 – Mississippi
No. 4 – Georgia
No. 5 – New Jersey
No. 6 – New Mexico
No. 7 – Maryland
No. 8 – Connecticut
No. 9 – Florida
No. 10 – Idaho

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