Bullying is common in U.S. schools and is linked to emotional, behavioral, and academic risk for school-aged students. School policies and practices focused on sexual orientation and gender identity (SOGI) have been designed to reduce bullying and show promising results. Most studies focusing on this subject matter have drawn from students’ reports. In this study, however, the authors examined teachers’ reports of bullying problems in their schools along with their assessments of school safety, combined with principals’ reports of SOGI-focused policies and practices. Merging two independent sources of data from over 3,000 teachers (California School Climate Survey) and nearly 100 school principals (School Health Profiles) at the school level, the authors utilized multi-level models to understand bullying problems in schools. The results show that SOGI-focused policies reported by principals do not have a strong independent association with teachers’ reports of bullying problems in their schools. However, in schools with more SOGI-focused policies, the association between teachers’ assessments of school safety and bullying problems is stronger. Recent developments in education law and policy in the United States and their relevance for student well-being are discussed as well.