American schools, resegregating gradually for almost two decades, are now experiencing accelerating isolation and this will doubtless be intensified by the recent decision of the U.S. Supreme Court. In June 2007, the Supreme Court handed down its first major decision on school desegregation in 12 years in the Louisville and Seattle cases. A majority of a divided Court told the nation both that the goal of integrated schools remained of compelling importance but that most of the means now used voluntarily by school districts are unconstitutional. As a result, most voluntary desegregation actions by school districts must now be changed or abandoned. As educational leaders and citizens across the country try to learn what they can do, and decide what they will do, we need to know how the nation's schools are changing, what the underlying trends are in the segregation of American students, and what the options are they might consider. The trends shown in this report are those of increasing isolation and profound inequality. The consequences become larger each year because of the growing number and percentage of nonwhite and impoverished students and the dramatic relationships between educational attainment and economic success in a globalized economy. Almost nine-tenths of American students were counted as white in the early 1960s, but the number of white students fell 20 percent from 1968 to 2005, as the baby boom gave way to the baby bust for white families, while the number of blacks increased 33 percent and the number of Latinos soared 380 percent amid surging immigration of a young population with high birth rates. The country's rapidly growing population of Latino and black students is more segregated than they have been since the 1960s and we are going backward faster in the areas where integration was most far-reaching. Under the new decision, local and state educators have far less freedom to foster integration than they have had for the last four decades. The Supreme Court's 2007 decision has sharply limited local control in this arena, which makes it likely that segregation will further increase. This report shows that the country is far into the dual processes of racial transformation and resegregation. These trends likely will be accelerated by the new Supreme Court decision. The country risks becoming a nation where most of the new nonwhite majority of young people will be attending separate and inferior schools, and educators will be forbidden to take any direct action likely to bring down the color line. The experience in districts which have already been forbidden to carry out voluntary programs suggests that segregation may rapidly intensify. Obviously educators still face many choices that will be related to the intensity and degree of this resegregation, but there is no simple alternative. (Contains 63 footnotes and 22 tables.) [This report was produced by The Civil Rights Project/Proyecto Derechos Civiles, UCLA, formerly the Harvard Civil Rights Project.]