Behavioral Health Continuum Infrastructure Program

DHCS released a Request for Applications (RFA) for more than $800 million in Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 2: Unmet Needs funds. This is part of a broader effort under Proposition 1, aimed at transforming California’s mental health and substance use disorder treatment systems. Learn more about Bond BHCIP at the Bond BHCIP Homepage. To see an overview of all BHCIP rounds and funding, please view the BHCIP Overview Infographic.  If you would like to see the progress and impact of previous BHCIP rounds watch this video: BHCIP 2025 Updates and What’s Ahead.

Overview

DHCS was authorized through 2021 legislation to establish BHCIP with $2.2 billion to construct, acquire, and rehabilitate real estate assets or to invest in needed mobile crisis infrastructure to expand the community continuum of behavioral health treatment resources. DHCS is releasing BHCIP grant funds through six rounds that target various gaps in the state’s behavioral health facility infrastructure. For more information on BHCIP grant funding and awards, please visit the BHCIP website.

Background

The Department aims to reduce homelessness, incarceration, unnecessary hospitalizations, and inpatient days and improve outcomes for people with behavioral health conditions by expanding access to community-based treatment. The Department proposes to invest in the expansion of beds, units, or rooms by building new behavioral health continuum infrastructure and expanding capacity. These resources would expand the continuum of services by increasing capacity for short-term crisis stabilization, acute and sub-acute care, crisis residential, community-based mental health residential treatment, substance use disorder residential treatment, peer respite, mobile crisis, community and outpatient behavioral health services, and other clinically enriched longer-term treatment and rehabilitation opportunities for individuals with behavioral health disorders, in the least restrictive and least costly setting. 

Proposition 1

In March 2024, California voters approved Proposition 1, a comprehensive initiative aimed at transforming the state’s behavioral health system. A central component of this measure is the infusion of up to $4.4 billion into BHCIP through the Behavioral Health Infrastructure Bond Act of 2024. This substantial investment positions BHCIP as a primary vehicle for expanding the state’s behavioral health infrastructure, including the development of treatment facilities. DHCS is administering these funds through competitive grants, with a focus on projects that address critical gaps in care for individuals with mental health and substance use disorders. 

DHCS released awards (Bond R1 Awardees) for $3.3 billion in Bond BHCIP Round 1: Launch Ready funds, creating 5,077 new residential/inpatient treatment beds for mental health and substance use disorders and 21,882 new outpatient facilities. These competitive grants will transform behavioral health services for Californians by expanding service capacity and addressing gaps in the behavioral health continuum of care. Please visit the BHCIP website to learn more.