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We assessed whether adoption of a state-level policy threshold in Texas for school-based disability identification was associated with greater racial and language disparities over time, adjusting for potential confounds. We did so using time-varying effect modeling of N=152,220 children attending elementary schools in Texas and the adjoining states from 2003 to 2017. Following the policy’s adoption, Black children and those who are English Language Learners attending Texas schools became significantly less likely than similarly situated Black children and English Language Learners attending schools in the adjoining states to be identified as having disabilities across the same time period. Adoption of the state policy threshold was associated with relatively greater racial and language disparities in disability identification in Texas.