Governor Gavin Newsome | Official website
Governor Gavin Newsom has announced a significant allocation of $3.3 billion in grant funding aimed at enhancing behavioral health care services across California. This initiative, facilitated by the California Department of Health Care Services (DHCS), is part of the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready awards. The funding is projected to create over 5,000 residential treatment beds and more than 21,800 outpatient treatment slots, addressing mental health conditions and substance use disorders among Californians, including those experiencing homelessness.
Governor Newsom emphasized the importance of this initiative by stating, “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. These launch-ready projects will build and expand residential beds and treatment slots for those who need help. Whether it’s crisis stabilization, inpatient services, or long-term treatment, we’re ensuring that individuals can access the right care at the right time.”
The full realization of Proposition 1 bond funding is expected to result in a total of 6,800 residential treatment beds and 26,700 outpatient treatment slots. Kim Johnson from the California Health & Human Services Agency remarked on this progress as a "critical milestone" towards transforming the state's behavioral health system.
Michelle Baass, DHCS Director, highlighted the broader impact of these investments: “This is a generational investment in California’s behavioral health future. We are not just building facilities. We are building hope, dignity, and pathways to healing for thousands of Californians."
The BHCIP program aims to establish a comprehensive behavioral health system that ensures timely access to necessary care types such as crisis stabilization and long-term treatments. This effort aligns with California's Mental Health for All initiative which seeks to modernize service delivery while increasing transparency and accountability.
Addressing an existing shortfall exceeding 7,000 behavioral health beds statewide is one objective this funding targets. The forthcoming second round of Bond BHCIP funding will provide over $800 million in competitive awards open to various entities aiming to expand further infrastructure development.
Additionally, up to $2 billion from Proposition 1 funds will be managed by the Department of Housing and Community Development (HCD) for constructing permanent supportive housing targeting veterans and individuals facing homelessness with mental health or substance use challenges.
For more information about these developments or how entities can apply for upcoming opportunities under BHCIP Round 2: Unmet Needs once applications open later this month—interested parties should visit relevant DHCS web resources.
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