The COVID-19 pandemic has adversely impacted the well-being of K-12 students, positioning youth mental health as a public health priority. School closures and remote learning are identified as key factors worsening child and adolescent mental well-being. However, research is sparse about the pandemic’s impact on the mental health of Black and Latinx youth, who have already been at increased risk of mental health problems. Further, community perspectives on actionable, school-based mental health policies are scarce, which may limit the relevance of implemented policies. The current study had two research questions: (1) What do professionals from diverse sectors perceive the impact of the COVID-19 pandemic to be on the mental health of Black and Latinx youth from low-income backgrounds? (2) What policies do community professionals recommend to address Black and Latinx youth mental health in public schools? This qualitative study applied community-partnered participatory research principles. Focus groups and semi-structured interviews were conducted from April–June 2021 with 30 youth-serving community-based professionals working in an urban area. We utilized grounded theory methodology to identify key themes. Dominant themes for perceived mental health impact were anxiety and depression with more frequent and intense suicidal ideation. The most frequent school policy recommendations were to increase access to individual supports in schools and to implement early detection and prevention initiatives. Further investment in workforce capacity in schools is vital to address the mental health needs of Black and Latinx youth. Policymakers can learn from stakeholders to help ensure that policies align with community needs.