SACRAMENTO, CALIFORNIA - FEBRUARY 01: California Gov. Gavin Newsom speaks during a press conference on February 01, 2023 in Sacramento, California. California Gov. Gavin Newsom, state Attorney General Rob Bonta, state Senator Anthony Portantino (D-Burbank) and other state leaders announced SB2 - a new gun safety legislation that would establish stricter standards for Concealed Carry Weapon (CCW) permits to carry a firearm in public. The bill designates "sensitive areas," like bars, amusement parks and child daycare centers where guns would not be allowed. (Photo by Justin Sullivan/Getty Images)
Sacramento, California – Governor Gavin Newsom announced Monday a sweeping $3.3 billion investment to expand behavioral health infrastructure across California, aiming to address the state’s growing mental health and substance use crisis. The funding, part of the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP), will help create more than 5,000 residential treatment beds and over 21,800 outpatient treatment slots for Californians in need.
The grants, administered by the California Department of Health Care Services (DHCS), are part of the BHCIP Round 1: Launch Ready awards and will prioritize care for individuals facing serious mental illness, substance use disorders, and homelessness.
“Californians demanded swift action to address our state’s behavioral health crisis when they voted for Prop 1 in March 2024. Today, we’re delivering our biggest win yet,” said Governor Newsom. “Whether it’s crisis stabilization, inpatient services, or long-term treatment, we’re ensuring individuals can access the right care at the right time.”
Once fully awarded, Proposition 1 funds are projected to create 6,800 residential beds and 26,700 outpatient slots, a significant step toward addressing the state’s estimated shortfall of over 7,000 behavioral health beds.
Kim Johnson, Secretary of the California Health & Human Services Agency, called the announcement “a critical milestone,” emphasizing that the funds support community-driven solutions that “expand access to care, promote equity, and meet people where they are.”
Michelle Baass, DHCS Director, said the investment represents “a generational investment in California’s behavioral health future,” noting that “we are not just building facilities — we are building hope, dignity, and pathways to healing.”
In addition to residential and outpatient treatment expansion, the grants support crisis care and mobile crisis infrastructure, forming the backbone of a comprehensive behavioral health care system focused on early intervention, sustained treatment, and community-based care.
The BHCIP program has already awarded $1.7 billion in competitive grants and is a cornerstone of the state’s Mental Health for All initiative, which aims to modernize behavioral health systems, improve accountability, and expand access.
Looking ahead, the second round of BHCIP funding — Bond BHCIP Round 2: Unmet Needs — will offer over $800 million in additional competitive grants, with applications expected to open later this month. Meanwhile, the Department of Housing and Community Development will oversee $2 billion in Proposition 1 funding to build permanent supportive housing for veterans and individuals experiencing homelessness.
For more information and updates, visit the BHCIP website.
