Newsom announces $3.3 billion in Prop 1 awards to build behavioral health facilities across California

SACRAMENTO — Governor Gavin Newsom on Thursday said California will distribute $3.3 billion in Proposition 1 behavioral health infrastructure grants to 24 projects that together will support 214 new or expanded facilities across the state.

"We are announcing an astonishing $3,300,000,000 in funds to transform California's behavioral health system," Newsom said, calling the awards a "generational investment" that will add nearly 5,100 residential treatment beds and more than 21,800 outpatient treatment slots as part of the first phase of Prop 1 spending.

The grants are part of the $6.38 billion bond voters approved in Proposition 1. Newsom said the projects selected for this round met state criteria requiring site control and a "launch-ready" status that allows contracts to be executed quickly and to take advantage of narrowly tailored exemptions from the California Environmental Quality Act (CEQA).

The administration said awardees include county-run and nonprofit projects intended to expand inpatient, residential and outpatient services in underserved regions. Dr. Matthew Chang, director of Riverside University Health System Behavioral Health, described two Riverside County projects funded in the round: a RUHS behavioral health wellness center that he said will include about 100 psychiatric beds for adolescents and adults and a Harmony Haven Children and Youth Center with residential and outpatient services for ages 0–18.

"These projects will provide Riverside County residents with access to compassionate, effective behavioral health care," Chang said.

Vitka Eisen, president and CEO of HealthRight 360, said the nonprofit's two funded projects in Ventura and Santa Clara counties would increase capacity for residential substance use disorder treatment and integrated withdrawal management and help the organization serve "over 1,000 new individuals per year in communities with unmet needs."

Secretary Kim Johnson of the California Health and Human Services Agency said the state will require public reporting and outcome monitoring for the investments. "This focus on data transparency and community input will ensure accountability and drive continuous improvement across the system," Johnson said.

Newsom emphasized that the state selected projects that could be implemented quickly and said local government action on permitting and the last "proverbial mile" remains essential. "Localism is determinative," he said. "The state vision will be realized at the local level, and that's why it's incumbent in the 54 counties that are participating ... that we drive local accountability, and we drive local support to get these projects permitted and get these projects open and operational."

Officials described the awards as phase 1 of Prop 1 spending. Newsom said roughly $3.3 billion is being routed now and that additional competitive opportunities for about $1.1 billion will be announced in the second phase. He also tied the infrastructure spending to parallel reforms and funding streams, naming the Mental Health Services Act changes, Homekey Plus, CalAIM, and care-court and conservatorship reforms as complementary efforts.

The administration said selected projects had to demonstrate site control, readiness to start construction or rehab, and eligibility for CEQA exemptions so work could proceed on an expedited timeline. Newsom said some projects are new construction and others will combine new construction with existing campus facilities; he displayed renderings for several projects with projected completion dates between late 2024 and mid-2027.

The governor also framed the announcement within the state's broader effort to address homelessness and substance use disorders, saying the new capacity could keep people out of county jails and state prisons and provide post-release placements rather than returning people to the streets. He reiterated a push for local enforcement of encampment ordinances and for stronger local action to use the new facilities.

Officials and the governor declined in the press event to provide a full roster of every funded site during the briefing; Newsom said notices and award details would be released to applicants and the public in the coming weeks. The administration said Homekey Plus and other related funding announcements would follow soon.

What was discussed vs. decided

Discussion: State officials and funded project representatives described the scale of the first-phase awards, project examples, the need for culturally responsive care and the linkage between infrastructure and homelessness and overdose prevention strategies.

Direction/assignments: The administration said it will publish award notices, require public reporting and monitor outcomes; it also urged counties and cities to expedite local permitting and implement model ordinances and other local policies to enable the projects to open.

Formal action: The governor announced that the administration will distribute $3.3 billion of Proposition 1 funds to 24 projects and 214 facilities; that announcement represents award decisions by the state, not a local vote recorded at the event.

Next steps and implementation risks

Officials said the primary implementation risks are local permitting and zoning processes, with CEQA exemptions limited to projects that meet the state's readiness criteria. Newsom and Johnson said the state will require transparency and reporting from awardees and local partners and use existing enforcement tools, including the newly described homelessness accountability functions, to press local governments on performance.

The administration framed this round as one phase of work to expand treatment capacity statewide and said additional funding opportunities and housing investments remain part of the broader plan. Newsom said the state will release further details and grant notices in the coming weeks and that Homekey Plus announcements were expected soon.

This article is based on remarks and answers to questions at a governor's office briefing where Governor Gavin Newsom, Secretary Kim Johnson, Dr. Matthew Chang and Vitka Eisen spoke about the awards and implementation plans.