Although studies on school suspensions focus on the disproportionate number of Black students receiving them, policy changes reducing suspensions offer new insights into the racial gap. Using annual school-level data from the Chicago Public Schools (2012-2016), I evaluate how a suspension reduction policy affected the number of students receiving suspensions, and the suspension gaps between majority Black schools and other schools. I find that the policy reduced overall suspensions but still preserved racial suspension gaps. I argue how structural limitations and functional alternatives played important roles in these consequences, and how this suggests the importance of contextual factors in assisting structural changes.