Arizona Senate Bill 1108, the "anti-ethnic studies bill," proposed to eliminate ethnic studies programs and ethnic-based organizations from state-funded education. Along with other anti-immigrant legislation, this bill is creating an oppressive climate of discrimination against individuals of Mexican descent in Arizona. This study investigates the impact of SB 1108 on the mental well-being of Mexican-descent undergraduate students and examines protective factors such as ethnic identity, civic engagement, and individual coping responses (engaged and disengaged). Ninety-nine undergraduates who self-identified as Mexican, Mexican American, or Chicana/o completed an online survey. Pearson product-moment correlation analysis indicates that greater stress due to SB 1108 was significantly associated with lower self-esteem and more depressive symptoms. Engaged coping responses to SB 1108 protected students' self-esteem even at high levels of stress; in contrast, students who felt high stress but were not engaged had significantly lower self-esteem. Our results also indicate that a positive ethnic identity, based on knowledge of cultural history and traditions, is a significant protective factor. Thus, while legislation such as the anti-ethnic studies bill may have a negative impact on the mental well-being of youth, it may also make them stronger as they become academically and civically engaged in response.