eral racial classification. The importance of civil rights compliance monitoring, and the difficulty of devising an acceptable alternative to the current method of relying on racial statistics, was made especially clear by the White House announcement of January 19, 1998, unveiling a plan to increase annual federal civil rights spending from $516 million to $602 million in the 1999 budget. 90 This would represent nearly a 17 percent increase, amounting to $86 million. Federal racial categorization would be a fundamental factor in determining how a great deal of this money would be spent. The history of federal racial categorization, the extent of its spread throughout both the public and private sectors, and its application in civil rights compliance monitoring are among the subjects of Chapter 2.