Children’s decisions regarding the allocation of societal resources in the context of preexisting inequalities were investigated. African-American and European-American children ages 5–6 years (n = 91) and 10–11 years (n = 94) judged the acceptability of a medical resource inequality on the basis of race, allocated medical supplies, evaluated different resource allocation strategies, and completed a measure of status awareness based on race. With age, children were increasingly aware of wealth status disparities between African-Americans and European-Americans, and judged a medical resource inequality between groups more negatively. Further, with age, children rectified the resource inequality over perpetuating it, but only when African-American children were disadvantaged. With age, children also referenced rights when reasoning about their judgments concerning the disadvantaged African-American group. When European-American children were disadvantaged, children did not systematically allocate more resources to one group over another. The results are discussed in terms of social inequalities, disadvantaged status, moral judgments, and intergroup attitudes.