Newsom announces $3.3B in Prop 1 grants to expand behavioral health service
California Gov. Gavin Newsom on Monday announced $3.3 billion in grant funding to expand access to behavioral health services across the state, launching the first wave of investments funded by Proposition 1, which voters approved in last year.
The funding, administered through the California Department of Health Care Services, will support the creation of more than 5,000 residential treatment beds and over 21,800 outpatient treatment slots. The grants are part of the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program Round 1: Launch Ready awards.
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'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,' Newsom said in a statement.
According to the state, California faces a shortage of more than 7,000 behavioral health beds. Newsom said Monday's awards are a step toward closing that gap and ensuring that residents have access to crisis stabilization, inpatient services, and long-term treatment when and where they need it.
According to the governor's office, the awards issued during Round 1 will 'help to create a comprehensive behavioral health system.' The investment will support the state's long-term goal 'to reduce mental health crises, increase the availability of services, and support community-based solutions.'
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A second round of BHCIP funding, known as Round 2: Unmet Needs, is expected to provide more than $800 million in competitive grants. A request for applications is expected to be released later this month.
A list of Monday's awardees can be found here.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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