The Biden-Harris Administration has approved California’s BH-CONNECT Initiative, enabling the state to provide up to six months of transitional rent for eligible individuals receiving behavioral health treatment. This initiative also launches a new $1.9 billion program aimed at strengthening the behavioral health workforce.
Governor Gavin Newsom announced the approval from the federal Centers for Medicare & Medicaid Services (CMS) for the Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) demonstration waiver. The approval follows Governor Newsom’s advocacy efforts in Washington, DC.
“Californians will soon have more support and more people providing support thanks to the approval by the Biden-Harris Administration of California’s innovative efforts to transform our state’s mental health system for better care and a more accountable system in every community,” stated Governor Gavin Newsom.
Mental illnesses are prevalent among Californians, with nearly one in 26 residents experiencing serious mental illnesses. In 2022, two-thirds of adults with mental illness did not receive treatment. These individuals face significant challenges when leaving treatment settings or while experiencing homelessness, making them key beneficiaries of services provided through BH-CONNECT. This initiative aims to assist Medi-Cal members—over 14 million Californians—with substantial behavioral health needs.
BH-CONNECT represents a strategic shift in addressing behavioral health care in California. In collaboration with county behavioral health plans, it aims to strengthen California’s behavioral health workforce, incentivize measurable outcomes, and fill critical service gaps for a more equitable and effective system of care—leveraging up to $5 billion in federal investments.
Key features include workforce investments managed by the Department of Health Care Access and Information (HCAI), transitional rent assistance through Managed Care Plans, support for foster children and youth involved in child welfare systems, incentives for counties improving access and quality, community transition services, and flexibility for short-term inpatient psychiatric care under federal Medi-Cal funding.
In 2022, DHCS commissioned a study on the continuum of care for behavioral health services in California to identify gaps in access and infrastructure needed for a coordinated network of care. The BH-CONNECT waiver application submitted to CMS focused on closing these gaps along the continuum of care.
Governor Newsom’s announcement follows his visits to Washington, DC over the past two years advocating for these resources on behalf of Californians.
BH-CONNECT is part of Governor Newsom’s Mental Health for All initiative and aligns with ongoing Behavioral Health Transformation efforts as part of Proposition 1. It builds upon nearly $15 billion in state investments aligning with initiatives like Behavioral Health Transformation-Proposition 1, Children and Youth Behavioral Health Initiative, Behavioral Health Continuum Infrastructure Program, Justice-Involved Reentry Initiative, Behavioral Health Payment Reform, Medi-Cal Transformation, 988 expansion, among others.
