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California says second-round Prop 1 awards push state past bond goals, funds 66 new projects

Office of the Governor · March 11, 2026
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Summary

Governor Newsom and state health officials announced $1.18 billion in second-round Proposition 1 awards to fund 66 projects and roughly 130 facilities statewide, saying combined rounds 1 and 2 now deliver about 6,919 residential beds and 27,561 outpatient slots and reach underserved communities.

Governor Newsom announced the second and final round of state awards under Proposition 1 on Tuesday, saying the $1.18 billion distribution will fund 66 projects and roughly 130 facilities across California and push the program past its original targets for treatment capacity.

The governor said the second round will create 2,554 residential treatment beds and 4,273 outpatient treatment slots, and that combining rounds 1 and 2 puts the state at about 6,919 residential beds and 27,561 outpatient slots. “This is the fastest distribution of funds for a state bond in history,” he said, framing the awards as part of a broader effort to rebuild community-based behavioral-health capacity.

Why it matters: the awards aim to expand treatment options in areas that have lacked infrastructure for decades and to speed up openings through land-use and CEQA reforms modeled on the state’s Homekey approach. The governor said the rounds prioritize first-time awardees and rural…

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