State Releases Up To $3.3 Billion of Prop 1 Funding for Treatment of Seriously Ill & Homeless

SACRAMENTO – Gov. Gavin Newsom announced the release of up to $3.3 billion in competitive grant funding from Proposition 1 to expand the behavioral health continuum and provide appropriate care to individuals experiencing mental health conditions and substance use disorders — with a particular focus on people who are most seriously ill, vulnerable, or homeless. Proposition 1 includes two parts: a $6.4 billion behavioral health bond for treatment settings and housing with services, and historic reform of the Behavioral Health Services Act or BHSA to focus on people with the most serious illnesses, substance disorders, and housing needs.

The state is also releasing the Proposition 1 Behavioral Health Services Act: Housing Supports Primer (July 2024) for counties, which explains how to spend the ongoing BHSA revenue on housing interventions. Per Proposition 1, 30% of county BHSA 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. The Proposition 1 Behavioral Health Services Act: Housing Supports Primer (July 2024) can be found HERE and a high-level fact sheet be found HERE.

Grant details

Through the California Department of Health Care Services or DHCS, the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready Request for Application (RFA) is now live. 

Applications are due from cities, counties, non-profits, for-profits, and tribal entities on Dec. 13, 2024, and are anticipated to be awarded by early 2025. A second round of funding from Proposition 1 bonds will support even more behavioral health facilities in 2025. BHCIP funding made possible by the bond 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. 

Find a fact sheet on the first round of Proposition 1 bond construction funding: HERE.

Learn more and apply

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.

Information about housing supports related to the BHSA is available here  More information about California’s transformation of our entire mental health and substance use disorder system can be found at mentalhealth.ca.gov.