California counties, cities, and nonprofits invited to apply for major behavioral health infrastructure grants
Sacramento, California – California is making a bigger commitment to behavioral health with a new round of financing. This week, Governor Gavin Newsom said that more than $800 million in competitive grants would be available. This comes after a promise of $3.3 billion, which is part of an ongoing effort to improve mental health and substance use disorder services across the state.
The money comes from the second round of the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP), which is called the “Unmet Needs” Request for Applications. The California Department of Health Care Services (DHCS) is in charge of this. It is the last phase of financing related to Prop 1’s Behavioral Health Infrastructure Bond Act. Its main goal is to reach Californians who have had the hardest time getting care in the past.
Governor Newsom underscored the urgency of this investment, pointing to the state’s ongoing efforts to close gaps in mental health care.
“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,” Gov. Newsom said.
A lot of different groups can apply for the BHCIP Round 2 funds, such as counties, cities, tribal groups, nonprofits, and businesses. The money will go to programs that create, buy, or improve community-based behavioral health facilities. Areas like inpatient treatment, outpatient treatments, crisis care, and building mobile crisis infrastructure will be given the most attention.
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The investments from Rounds 1 and 2 are expected to create around 6,800 residential treatment beds and 26,700 outpatient treatment slots across the state. This is a big step toward filling in service gaps, with an emphasis on delivering treatment where it is most needed, such as for people in a mental health crisis, those who need inpatient care, or those who need continuing support.
Previous rounds of BHCIP funding have already made a big difference. They gave $1.7 billion to 255 projects across California. In May 2025, $3.3 billion went to 124 projects in 42 counties. These projects made thousands of new treatment beds and outpatient care slots.
To be eligible for this current round, applicants must show that their initiatives are well-planned and meet the requirements of the community. The deadline for applications is October 28, 2025, and the state plans to notify the winners in the spring of 2026.
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The official BHCIP website has all the information and application instructions you need if you want to learn more or apply. This new release is another step forward in California’s effort to make the behavioral health system stronger and easier for everyone to use.
