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California: Building on billions announced earlier this month, Governor Newsom makes $800 million available in new Prop 1 grants

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May 30, 2025

Building on billions announced earlier this month, Governor Newsom makes $800 million available in new Prop 1 grants

What you need to know: With unprecedented speed, Governor Newsom is today announcing the availability of $800 million in competitive grant funding as part of Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 2 to develop a wide range of behavioral health treatment settings for Californians who need care most.

Sacramento, California – Following the announcement of $3.3 billion in grant funding earlier this month, Governor Gavin Newsom today announced the availability of more than $800 million in competitive grant funding available to support behavioral health initiatives in California. Distributed through the California Department of Health Care Services (DHCS), the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 2: Unmet Needs Request for Applications (RFA) represents the final round of funding through Proposition 1's Behavioral Health Infrastructure Bond Act. These funds will help communities across California expand access to mental health and substance use disorder (SUD) services, particularly in areas with the greatest unmet needs.

"With today's announcement, we continue to build on the historic investments this administration has made in behavioral health – thanks to Californians and their support for Prop 1. The funding being made available today will ensure that the most vulnerable people in our state will get the care they need, when they need it."

Governor Gavin Newsom

DHCS Director Michelle Baass: "With Bond BHCIP Round 2, we are continuing our push to build a better, more equitable behavioral health system. These investments help ensure that all Californians, especially those who have historically been left out, can access the care they need when and where it is needed most."

Part of California's broader Mental Health for All initiative, BHCIP Round 2 will fund projects that build, acquire, or expand community-based behavioral health facilities. Priority areas include residential treatment, outpatient care, crisis services, and mobile crisis infrastructure. Between Round 1 and Round 2, the investments are expected to create 6,800 residential treatment beds and 26,700 outpatient treatment slots, helping close critical service gaps throughout the state.

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Why this matters

Bond BHCIP Rounds 1 and 2 are helping to create a comprehensive behavioral health system, ensuring that individuals can access the right care at the right time, whether it be for crisis stabilization, inpatient care, or long-term treatment. As part of the state's goal to reduce mental health crises, increase the availability of services, and support community-based solutions, these investments are vital in ensuring the long-term sustainability and accessibility of behavioral health services.

Through previous BHCIP rounds, DHCS has awarded $1.7 billion in grants to support 255 infrastructure projects, including mobile crisis units, new facilities, and expanded treatment capacity. Bond BHCIP Round 1: Launch Ready, awarded in May 2025, allocated $3.3 billion to 124 projects across 42 counties, supporting 5,077 residential beds and 21,882 outpatient slots.

Application details

The BHCIP Round 2: Unmet Needs RFA can be found HERE. This funding is open to all eligible applicants, including counties and cities, tribal entities, nonprofit organizations, and for-profit organizations.

Applicants must have already completed critical parts of the project development process and demonstrate how their project meets community needs, addresses service gaps, and aligns with state priorities. Applications must be submitted by October 28, 2025. Awards are expected to be announced in spring 2026.

For more information about Bond BHCIP Round 2: Unmet Needs, visit the BHCIP website

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