Diversity today is considered central to the capacity of postsecondary institutions to thrive in an increasingly multiracial and multiethnic society. However, as universities take steps to reap the educational benefits of racial and ethnic diversity, legal decisions and state laws increasingly restrict the tools these institutions have historically implemented to further this goal. This article provides an overview of these legal and public policy developments and considers their implications for future policies aimed at achieving racial and ethnic diversity in graduate studies. The author emphasizes the need for institutions to reframe the ways concepts of diversity, equity, and quality are perceived and enacted through admissions policies.