California has reached a significant milestone in modernizing its behavioral healthcare system as Proposition 1, approved by voters in 2024, officially takes effect statewide in all 58 counties as of July 2026. Governor Gavin Newsom announced this shift to the Behavioral Health Services Act (BHSA), which transforms the state's approach to mental health and substance use services by aligning county investments with a focus on accountability, equity, and outcomes.
The BHSA aims to provide comprehensive care, including substance use disorder treatment and supportive housing, for individuals experiencing homelessness and veterans. It also focuses on building a stronger, more diverse behavioral health workforce and implementing new statewide prevention strategies to help Californians avoid mental illness and substance use disorders.
Governor Gavin Newsom said, "Today marks a historic turning point for California, reflecting years of work to modernize and strengthen our behavioral health system. Through the BHSA, we are fundamentally reshaping how Californians receive mental health and substance use services and supports. This is about outcomes, dignity, and ensuring that every person, no matter their circumstance, has a path to stability, wellness, and hope." California Health and Human Services Secretary Kim Johnson added that the BHSA "reflects a fundamental shift in how California approaches behavioral health," building a more connected, accountable system.
Under the BHSA, counties will operate with a modernized structure that integrates planning across all behavioral health funding, targets high-need populations, explicitly includes substance use disorder services, and expands permanent supportive housing. It also establishes a statewide prevention program, strengthens the behavioral health workforce, and enhances fiscal oversight to maximize federal funding.
Preparation for this transition included awarding $4.17 billion through the Proposition 1 Behavioral Health Continuum Infrastructure Program, supporting over 330 projects expected to add more than 6,900 residential treatment beds and 27,500 outpatient treatment slots. This transformation strengthens California's ability to connect people with necessary behavioral healthcare, expand access to supportive housing, and support stronger crisis response and earlier access to services, ultimately reducing the need for emergency interventions.