California allocates $800 million for behavioral health infrastructure expansion

Governor Gavin Newsom has announced the availability of over $800 million in competitive grant funding for behavioral health initiatives in California. This funding is part of the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 2, aimed at expanding access to mental health and substance use disorder services across the state.

The funds will be distributed through the California Department of Health Care Services (DHCS) and represent the final round of funding from Proposition 1’s Behavioral Health Infrastructure Bond Act. The initiative seeks to address unmet needs by developing a wide range of behavioral health treatment settings.

“With today’s announcement, we continue to build on the historic investments this administration has made in behavioral health – thanks to Californians and their support for Prop 1. The funding being made available today will ensure that the most vulnerable people in our state will get the care they need, when they need it,” stated Governor Gavin Newsom.

Michelle Baass, Director of DHCS, emphasized the importance of these investments: “With Bond BHCIP Round 2, we are continuing our push to build a better, more equitable behavioral health system. These investments help ensure that all Californians, especially those who have historically been left out, can access the care they need when and where it is needed most.”

The BHCIP Round 2 will fund projects that aim to build or expand community-based behavioral health facilities with priority given to residential treatment, outpatient care, crisis services, and mobile crisis infrastructure. Between Rounds 1 and 2, these efforts are expected to create thousands of new residential treatment beds and outpatient treatment slots throughout California.

The application process for this funding is open to eligible applicants including counties, cities, tribal entities, nonprofit organizations, and for-profit organizations. Applications must be submitted by October 28, 2025.

For further details about Bond BHCIP Round 2: Unmet Needs or to apply for funding, interested parties can visit the BHCIP website.