California previews Medi‑Cal behavioral health loan‑repayment program; applications open July 1

The Department of Health Care Access and Information (HCAI), in partnership with the California Department of Health Care Services (DHCS), on an informational webinar detailed a new Medi‑Cal Behavioral Health Student Loan Repayment Program that is part of the broader BH Connect initiative and will use Section 1115 demonstration authority to expand the state’s behavioral‑health workforce.

Dr. Sharmila Shah, behavioral health and policy branch chief for health workforce development at HCAI, said the program is intended to “support and retain behavioral health providers, particularly in underserved and high‑need communities, by helping to reduce the burden of student loan debt.” The agencies said the BH Connect waiver and related state plan amendments were approved by the Centers for Medicare & Medicaid Services (CMS).

Why it matters: California faces a statewide behavioral‑health workforce shortage, officials said, and the program is designed to steer more clinicians into Medi‑Cal safety‑net settings by tying loan‑repayment awards to future service commitments.

Program size and timeline: HCAI and DHCS described BH Connect’s workforce initiative budget as up to $1.9 billion between 2025 and 2029 for five programs; for this loan‑repayment cycle the agencies said up to $90 million is available. The application opens July 1, the application deadline is Aug. 15, award notices are expected in November and grant agreements are planned to start in December. Officials said awards will be paid directly to loan servicers and that the program will not pay recipients directly.

Who can apply: Policy analyst Christian…