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Given the mixed evidence on the contributions of school-level factors to racial discipline disparities, there is a need to revisit how school contexts shape exclusionary discipline. This study applies the racial/minority threat theoretical framework to examine the association between schools’ racial composition of students and exclusionary discipline in New York City. Using both school-level and student-level disciplinary outcomes, we find that schools with higher proportions of Black, Latinx and mixed race students use more exclusionary discipline (office discipline referrals and suspensions) both overall and for Black students. School climate moderates the relationship between school racial composition and discipline, and there is no evidence that racial threat is moderated by school staff racial diversity and experience, or by school achievement.