Persistent disparities in school exclusionary policies by race and ethnicity have long been recognized as a major issue in student disciplinary practices and in unequal opportunities for education. Only limited research has been conducted to provide insight into the varying effects of race and ethnicity on the recently increasing implementation of student discipline. This study examines racial imbalances in in-school suspension rates within school neighborhoods, which are defined as school districts and five-digit zip-code areas. This research provides partial but significant support for the racial threat hypothesis by presenting that racially uneven school districts and communities present smaller differences in in-school suspension rates between African American and White students and between Hispanic or Latinx students and White students.