This project examines disability categorization in schools in order to understand the potential dynamics of racial bias in organizations. Drawing on a large dataset from an urban school district, the study examines whether or not schools assigned disabled white students to previously low status disability categories, and as a consequence, infused these categories with prestige and resources during the period of federally ordered school desegregation. The project tests the changes in the likelihood of specific disability categorizations over time for different racial/ethnic groups under conditions of segregation, desegregation, and resegregation. This study broadens understanding of the potential racial bias in disability categorization and the challenges in reducing it. It can stimulate better preparation of educational professionals and provide an organizational lens for compliance monitoring. The findings will be of broad journalistic and societal interest and may result in appropriate treatment and beneficial academic and social outcomes for students.