Policies that mandate in-grade retention of low-performing students have become central components of standards-based reforms across the country. While educational researchers have extensively studied the student-level correlates of retention and the consequences of retention for student achievement, little attention has been focused on identifying the factors that influence district retention decisions. In this study, the authors explored the significance of a political explanation of retention. A multivariate approach was used to investigate levels of student retention in 2000-2001 in 1,039 Texas school districts. Results showed that, as in earlier studies, student achievement and demographics were directly linked to levels of retention. However, changes in district leadership, local voters' ideology, and minority representation among district officials also had significant effects on retention levels. These findings suggest that retention is driven not only by student-level characteristics and district resources but also by the constraints and preferences of local constituencies and leadership. (Contains 3 tables and 9 notes.)