​​​​​​Proposition 36: Community-Based Substance Use Treatment Expansion

Overview

The California Department of Health Care Services (DHCS) is launching a new initiative under Proposition 36 to expand access to community-based substance use treatment and recovery services. This initiative is grounded in the legislative framework of Proposition 36 and Assembly Bill 102, which together aim to reduce incarceration and improve treatment outcomes for individuals with substance use disorders.

Through this initiative, DHCS will distribute $50 million in one-time funding to counties to support planning, capacity building, and treatment services. The Community Services Division, Prevention & Youth Branch, will oversee DHCS's portion of funding, with the Sierra Health Foundation: Center for Health Program Management acting as the administrative entity for DHCS.

Request for Information (RFI)

To support a transparent and equitable allocation of funds, DHCS will release a Request for Information (RFI) to all California counties. The RFI will serve as the primary mechanism for counties to confirm participation and provide essential data for funding distribution and reporting.

RFI Release Date: January 6, 2026
Priority Response Deadline: February 27, 2026
Contract Term: March 1, 2026 – March 31, 2028

The RFI will include:

• An online intake and data assessment survey
• Scope of Work & Budget Worksheet (Appendix D)
• Guidance on eligible uses of funds
• Instructions for submitting responses and optional declination if any county does not wish to accept their allocation set-aside.

Request for Information: Proposition 36 Behavioral Health Implementation and Funding​​​

​​Counties will submit responses through an online portal and upload required documents. Additional instructions for completing these steps are in the RFI.

Legislative Background

Proposition 36, approved by voters in November 2024, modifies provisions of Proposition 47 (2014) to increase accountability for certain drug and theft crimes. A key component is the creation of a “treatment-mandated felony" process, allowing courts to mandate treatment for individuals with repeat drug convictions. Successful completion of treatment results in dismissal of charges.

Assembly Bill 102 (Budget Act of 2024) provides one-time funding to help counties build infrastructure for assessments, court coordination, and treatment services.

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