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WASHINGTON, D.C. - The Justice Department and a group of Mississippi residents have reached a $500 million agreement with the state to settle a lawsuit brought 25 years ago to desegregate Mississippi's higher education system.

The agreement in Ayers and United States v. Musgrove brings to an end a class action suit filed in 1975 by black Mississippians to desegregate the states's public colleges and universities. The suit sought to improve academic programs and facilities at the state's three historically black universities: Jackson State, Alcorn State, and Mississippi Valley State. The suit also sought to increase access for all students to the state's four-year colleges by removing barriers to choice. The United States intervened in the case as a plaintiff shortly after it was filed.

"The important agreement that we have reached with the state of Mississippi will increase access to quality educational opportunities and benefit all of Mississippi's students and citizens," said Attorney General John Ashcroft.

The agreement calls for $246 million in funding over a 17-year period for academic programs at the state's black universities. Another $75 million in funding over five years will be spent on capital improvement projects at these universities. The agreement also provides $70 million in public endowments and up to $35 million in private endowments for the historically black colleges and universities over a 14-year period.

The settlement also could significantly expand participation in a summer program adopted by the state in 1995 to help students who do not qualify for regular admission to Mississippi's university system. The Summer Developmental Program will receive $6.25 million over a 10-year period under the agreement.

In addition, the state will recognize Jackson State University as a comprehensive university and designate the Mississippi Veterans Memorial Stadium in Jackson as the home of the JSU Tigers.

The agreement was approved by Mississippi Governor Ronnie Musgrove and Mississippi Attorney General Mike Moore on behalf of the state, and by U.S. Representative Bennie Thompson, lead plaintiff, on behalf of private plaintiffs.

The Ayers lawsuit alleged that Mississippi maintained policies that discriminated against black citizens who attended the state's five historically white universities and that these policies also created inferior educational opportunities at the state's historically black universities. In 1992, the U.S. Supreme Court rejected Mississippi's defense that adopting race-neutral policies and practices satisfied its obligation to dismantle a higher education system that at one time officially separated students by race [United States v. Fordice ]. The Court held that Mississippi must reform its existing policies that were traceable to its unconstitutional education system and that continued to have discriminatory effects, to the extent practicable and consistent with sound educational practices. The case has continued in the lower courts for consideration and implementation of appropriate remedies.

The agreement filed today in U.S. District Court in Oxford calls for the court to dismiss the underlying litigation and retain jurisdiction to enforce the terms of the settlement. Following a 45-day notice period to members of the plaintiff class, the court will schedule a hearing to consider approval of the agreement.

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