California’s $127M behavioral health funding push: 6 things to know

Advertisement

California is rolling out a new round of funding to support mental and substance use treatment programs, building on multibillion-dollar investments across the state, according to a Sept. 26 news release from Gov. Gavin Newsom’s office.

Here are six things to know:

  1. California will award $127 million to local governments and tribal communities to implement behavioral health and substance use disorder treatment programs. The grants aim to support efforts tied to Proposition 36 and Proposition 47 reforms.
  1. More than 60% of the funding will support treatment programs mandated under Proposition 36, which created a “treatment-mandated felony” structure but did not provide funding for treatment infrastructure.
  1. A total of 23 grants will be distributed in this round, with nine grantees expanding or launching Proposition 36 programs. This is the fifth round of three-year grants awarded by the Board of State and Community Corrections, the release said.
  1. Proposition 47 grants have shown measurable outcomes. A study of one cohort found a 70% drop in homelessness and a 41% decline in unemployment. Recidivism dropped by more than half among participants who received services.
  1. While Proposition 47 has generated nearly $1 billion in funding since 2014, higher incarceration rates under Proposition 36 could reduce future savings. Those savings currently fund mental health, substance use and diversion programs (65%), K-12 schools (25%) and victim services (10%).
  1. Since 2019, California has invested $1.7 billion in crime prevention and public safety. In 2024, voters approved Proposition 1, providing $6.4 billion to expand the state’s behavioral health system, including about $4.4 billion for infrastructure through the Behavioral Health Continuum Infrastructure Program, according to the release. 
Advertisement

Next Up in Investment & Transactions

Advertisement