Black students are about 1.5 times more likely to be receiving special education (SpEd) services relative to white students. While there is concern that this implies some black students are inappropriately placed in SpEd, the impacts of the disproportionate representation of minority students in SpEd remains unclear. Using administrative data from Texas, we find that capping black disproportionality led to small gains in high school completion and college attainment for black students in special and general education. Overall, our results suggest that reductions in SpEd misclassification among black students may serve to reduce gaps in later-life success across race. [This report was created with financial support from the Bronfenbrenner Center for Translational Research, Cornell University Graduate School, Cornell Policy Analysis and Management Department, and Cornell Economics department Labor Grant in Economics.]