California unveils 291 million dollars to expand CARE Court housing and treatment services
Sacramento, California – California is seeing its first statewide drop in unsheltered homelessness in more than 15 years—a 9% drop—and Governor Gavin Newsom says the state will now go forward with stronger monitoring and increased financing to keep the momentum going.
This week, the Governor announced new accountability measures related to the Community Assistance, Recovery, and Empowerment Act. He also announced $291 million in new funding to enhance supportive housing and behavioral health services across the state. The money comes from Homekey+ ($131.8 million) and the Homeless Housing, Assistance, and Prevention (HHAP) program ($159 million).
“Care and accountability go hand in hand — full stop. Through CARE Court, we have seen inspirational stories of recovery and resilience, but many counties continue to lag behind their peers. Local leaders have a moral and legal obligation to deliver this transformational tool for those who need it most. We will not accept failure and excuses when lives are on the line,” Gov. Newsom said.
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Ten counties—Humboldt, Tuolumne, Marin, Napa, Merced, Sutter, Alameda, Santa Barbara, San Mateo, and Imperial—have been named “CARE Champions” for 2025, the first full year that all 58 counties had to take part.

These counties had outstanding implementation and high petition rates per capita. Ten counties, including Los Angeles, San Francisco, Orange, and Santa Clara, are on a “improvement” list and will get focused technical help from the state’s CARE Improvement and Coordination Unit.
Since it started, more than 3,800 CARE petitions have been filed across the state. Counties have also reported more than 4,000 diversions, which are examples in which people were connected to services without going through the court system. More than 1,851 participants have continued through the judicial procedure.
CARE Court is meant to help people with untreated schizophrenia and other psychotic diseases get accommodation and treatment with the help of a civil court judge. State officials stress that the process is not meant to punish people, but to help them stay stable over the long term.
Voters in 2024 adopted Proposition 1, a $6.4 billion behavioral health bond that supports the bigger push. When fully funded, it should make 6,800 residential treatment beds and 26,700 outpatient treatment slots.
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State leaders say the goal is clear: treatment, not tents — and measurable progress in every county.



