CSAC Bulletin Article

Proposition 1: Governor Announces Plans to Accelerate Initial Round of Bond Funding

May 16, 2024

Earlier this week in San Mateo County, Governor Newsom announced his intention to accelerate the initial round of bond funding of up to $3.3 billion for behavioral health infrastructure projects under Proposition 1. According to the announcement, eligible entities – which include counties, cities, tribal entities, nonprofit and for-profit entities – will be able to apply for funding from the first round of the bond this summer. Following the Governor’s announcement, the Department of Health Care Services (DHCS) released its bond guidance for the Behavioral Health Continuum Infrastructure Program (BHCIP) Rounds 1 and 2.


Proposition 1, which was approved by the voters at the March 5 statewide primary election ballot as a legislatively referred state statute, consists of two main components – the Behavioral Health Services Act (BHSA) (SB 326) and the Behavioral Health Infrastructure Bond Act (BHIBA) (AB 531). Proposition 1 provides for statutory changes to reform the state’s behavioral health system and create more supportive housing and behavioral health treatment resources. The BHIBA portion of Proposition 1 is a $6.4 billion general obligation bond to build new or expand existing capacity for the continuum of behavioral health treatment facilities and supportive housing for Californians experiencing mental health conditions and substance use disorders.

DHCS will administer the portion of BHIBA funding for grants as specified under BHCIP (nearly $4.4 billion). Of these funds, $1.5 billion of competitive grant funding will be available exclusively to cities, counties, city and counties, and tribal entities, with $30 million specifically designated to tribal entities. The balance of the funds, up to $2.9 billion, will be available to cities, counties, tribal entities, and nonprofit and for-profit organizations. The Department of Housing and Community Development (HCD) will administer the remaining portion of the BHIBA funding for supportive housing ($2 billion total, with $1 billion for veterans).

Bond Program Update

DHCS issued its bond program update for BHCIP Round 1 (2024): Launch Ready, and BHCIP Round 2 (2025): Unmet Needs, which provides an overview of the program and outlines eligibility considerations, qualifying facility types, funding parameters, and match requirements in preparation for the release of the Request for Applications (RFA). More information about the Bond BHCIP Rounds can be found on the BHCIP website.

Additional information about DHCS activities specific to Proposition 1, including public listening sessions and available resources, are available on the Behavioral Health Transformation (BHT) webpage.

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