California shifted all 58 counties to the Behavioral Health Services Act in July 2026, completing the transition approved by voters through Proposition 1 in 2024. The law replaced the Mental Health Services Act with a new behavioral health framework focused on accountability, equity and outcomes, according to a July 2 news release from Gov. Gavin Newsom’s office.
Here are three things to know:
- The transition expanded counties’ ability to fund substance use disorder treatment, supportive housing, prevention programs and workforce development. The law also requires integrated planning across behavioral health funding sources and directs resources toward people with the highest behavioral health needs, including those experiencing homelessness, justice involvement and institutionalization.
- California has also awarded $4.17 billion through the Proposition 1 Behavioral Health Continuum Infrastructure Program to support more than 330 behavioral health infrastructure projects. The projects are estimated to add more than 6,900 residential treatment beds and more than 27,500 outpatient treatment slots, according to the release.
- State implementation efforts also included development of a county policy manual informed by more than 2,660 public comments. All 58 counties and two eligible cities submitted draft Integrated Plans, and the state finalized a 2026-2030 Workforce Education and Training Plan to support behavioral health workforce development.
At the Becker's Fall Behavioral Health Summit, taking place November 4–5 in Chicago, behavioral health leaders and executives will explore strategies for expanding access to care, integrating services, addressing workforce challenges and leveraging innovation to improve outcomes across the behavioral health continuum. Apply for complimentary registration now.
