Gov. Gavin Newsom announced May 30 that $800 million in competitive grant funding is available for behavioral health initiatives throughout the state. The funds follow a $3.3 billion grant funding announcement related to Proposition 1’s Behavioral Health Infrastructure Bond Act, which voters passed in March 2024.
This funding represents the second round of Proposition 1’s Bond Behavioral Health Continuum Infrastructure Program (BHCIP). This round marks the final round of funding through the voter-approved measure intended to support projects in areas where mental health and substance abuse treatment options are most limited.
The program will fund projects that build and expand behavioral health facilities, with the total investment expected to create 6,800 treatment beds and 26,700 outpatient treatment slots.
The infrastructure investments address critical shortages in California’s behavioral health system, where access to care remains severely limited. According to state officials, two-thirds of adults with mental illness did not receive treatment in 2022, while recent data shows nearly 83% of adults with substance use disorders do not receive needed care.
The treatment gap particularly affects youth, with 62.4% of young people who experienced major depressive episodes failing to receive mental health services. These shortages force patients into longer wait times and drive many to seek costly emergency room care for mental health crises.
Previous BHCIP funding rounds have awarded $1.7 billion in grants through the state Department of Health Care Services, supporting 255 infrastructure projects, including expanded treatment centers, new facilities and mobile treatment options. BHCIP Round 1: Launch Ready—awarded in May—distributed $3.3 billion to 124 infrastructure projects across the state. This effort will support 5,077 treatment beds and 21,882 outpatient treatment slots.
The BHCIP Round 2: Unmet Needs Request for Applications is open to eligible applicants including counties, cities, nonprofit organizations, for-profit organizations and tribal entities.
Critical components of the project development process must be completed, and applicants must demonstrate how their project meets specific community needs, particularly addressing gaps in service areas. Applications are due Oct. 28, and award announcements are expected in spring 2026.
Image by mspark0 from Pixabay
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