Gentrification is happening in cities all across the United States. Consequently, some Black communities that were intentionally segregated and under-resourced are experiencing capital investments and demographic changes. These gentrification-induced racial and socioeconomic shifts impact many local institutions, namely school districts. Given this, there is an emerging body of research on schools and gentrification. However, less research has examined the actions of school districts as institutional actors in gentrification. This study examines how two school districts’ actions mediate school gentrification. Using a theorization of gentrification as a process of racial capitalism, we draw on interviews with 26 principals across both districts. Our findings suggest that districts’ actions influence school gentrification by mediating the movement of Black and other youth of color to various schools through cycles of differential investments across the districts. We conclude with implications for future research.