NEWARK—The $144 million raised so far to help turn around Newark schools appears to be having a side effect—dividing the residents of this city into two camps: those who are excited about what the money can do and those who are suspicious of the donors' motives.

This week, nearly $1 million of the total was awarded to five new high schools, immediately sparking cries of unfairness from some city officials and residents, who said the move neglected older, failing schools.

"I...