Under Section 504, a school must educate each qualified student with a disability with students who do not have disabilities, as much as is appropriate for that student's needs. The school must place the student in the regular classroom setting unless it can show that the student cannot be educated there satisfactorily, even with supplementary aids and services. If a different setting is needed, the school must also consider how close it is to the student's home.
“A recipient to which this subpart applies shall educate, or shall provide for the education of, each qualified handicapped person in its jurisdiction with persons who are not handicapped to the maximum extent appropriate to the needs of the handicapped person.”
This section is educational support, not legal advice. Special education rules can depend on your state and your child's facts. Talk with your IEP or 504 team, and with counsel when you need legal advice.