CALIFORNIA ANNOUNCES NEW FUNDING TO STRENGTHEN THE STATE'S BEHAVIORAL HEALTH INFRASTRUCTURE
SACRAMENTO – The California Department of Health Care Services (DHCS) today released the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready
Request for Application (RFA) announcing the availability of up to $3.3 billion in competitive grant funding. These funds will expand the behavioral health continuum and provide appropriate care to individuals experiencing mental health conditions and substance use disorders.
“With this funding, we are taking a crucial step forward in strengthening California's behavioral health system," said
DHCS Director Michelle Baass. “This funding will enable organizations statewide to build and expand essential services, moving California's Behavioral Health Transformation forward."
Funding from Proposition 1 bonds will support even more behavioral health facilities in 2025 and 2026. Bond BHCIP funding is estimated to create 6,800 residential treatment beds and 26,700 outpatient treatment slots for behavioral health and will build on other major behavioral health initiatives in California. Please see the
initial guidance about Proposition 1 bond construction funding.
WHY THIS IS IMPORTANT: Through BHCIP, DHCS has already competitively awarded $1.7 billion in grants to construct, acquire, and expand properties and invest in mobile crisis infrastructure for behavioral health. Proposition 1, passed in March 2024, increases funding opportunities to expand BHCIP to serve even more Californians with mental health and substance use disorders.
BIGGER PICTURE: California is
modernizing the behavioral health delivery system to improve accountability, increase transparency, and expand the capacity of behavioral health care facilities for Californians.
The state also released a
Proposition 1 Behavioral Health Services Act: Housing Supports Primer for counties that explains how to spend the ongoing Behavioral Health Services Act revenue on housing interventions. Per Proposition 1, 30 percent of county Behavioral Health Services Act funds each year must be directed to housing supports for people with serious behavioral health needs, including allowable ongoing capital to build more housing options. Based on projections for Fiscal Year 2026-2027, the total statewide housing funding will be approximately $950 million annually to help ensure the longevity of these projects. This
fact sheet provides basic information about housing funding and opportunities made possible by the Behavioral Health Services Act/Mental Health Services Act.
Additionally, the Department of Housing and Community Development (HCD), in collaboration with the California Department of Veterans Affairs, will oversee up to $2 billion in Proposition 1 funds to build permanent supportive housing for veterans and others who are homeless or at risk of homelessness and have mental health or substance use disorder challenges. HCD is expected to provide guidance for potential grantees by late 2024.
DHCS also plans to release the RFA for the remaining bond funding, totaling up to $1.1 billion, for Bond BHCIP Round 2: Unmet Needs, in May 2025, with all funds awarded by 2026.
LEARN MORE: Interested applicants can view the RFA for more details about eligibility requirements. To be considered “launch ready," eligible entities must meet the criteria specified in the RFA. For more information about Bond BHCIP Round 1: Launch Ready, please visit the
BHCIP website.
Here is more information about housing supports related to the Proposition 1 Behavioral Health Services Act. For Behavioral Health Transformation-related inquiries, please email BHTinfo@dhcs.ca.gov. Visit the Behavioral Health Transformation webpage for updates and resources, including recordings of regular public listening sessions. To receive regular updates, please sign up for the listserv on the DHCS website.