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State-level policies significantly influence health outcomes among sexual minority adults by shaping exposure to structural discrimination and minority stress. This study examines the relationship between state sociopolitical climates, substance use disorders, and mental distress among lesbian, gay, bisexual, and other sexual minority individuals. Drawing on minority stress theory, the study hypothesizes that sexual minorities living in states with discriminatory policies will experience higher rates of psychological distress and substance abuse, while those in protective policy environments may have improved health outcomes. However, disparities may persist, particularly for bisexual and non-monosexual individuals, who experience distinct stressors. Utilizing restricted data from the Generations Study, a nationally representative dataset of sexual minorities, merged with state-level policy data from the Movement Advancement Project and the Human Rights Campaign, this study employs negative binomial regression models to assess the association between state policy environments and health outcomes. Interaction analyses explore whether bisexual and other sexual minorities experience greater vulnerability compared to gay and lesbian individuals. Findings indicate that while protective policies are associated with lower distress and substance use, disparities persist for bisexual and other non-monosexual individuals, suggesting that legal protections alone are insufficient in addressing structural health inequities. These results emphasize the need for comprehensive policy solutions, including local-level protections, mental health services, and community support programs. This study contributes to sociological discussions on structural stigma, health inequality, and the role of policy in shaping population health.