Mental Health Crisis Spurs Historic $5 Billion Federal Investment in California

Sacramento, CA – Amid alarming mental health statistics, California has secured federal approval for its ambitious BH-CONNECT initiative, gaining access to up to $5 billion in federal funding to transform the state’s struggling behavioral health system.

Nearly one in seven California adults experiences mental illness, with one in 26 facing serious conditions that impair daily functioning. The crisis extends to the state’s youth, where one in 14 children suffers from emotional disturbances severe enough to disrupt family, school, and community activities.

The Centers for Medicare & Medicaid Services (CMS) approved the state’s demonstration waiver following Governor Gavin Newsom’s direct advocacy in Washington, DC. The program introduces groundbreaking housing support, allowing eligible individuals receiving behavioral health treatment to access up to six months of transitional rent assistance.

The initiative includes a $1.9 billion investment in behavioral health workforce development, addressing critical staffing shortages that have hampered access to care. The program will partner with county behavioral health plans to implement reforms and measure outcomes.

“Californians will soon have more support and more people providing support thanks to the approval by the Biden-Harris Administration of California’s innovative efforts to transform our state’s mental health system for better care and a more accountable system in every community.”

Governor Gavin Newsom

BH-CONNECT builds upon California’s existing $15 billion investment in mental health services and aligns with other state initiatives, including the recently passed Behavioral Health Transformation-Proposition 1 and the expanded 988 crisis response system.

Mental health advocates note this comprehensive approach could serve as a model for other states facing similar behavioral health challenges. The integration of housing support with treatment acknowledges the crucial role stable housing plays in recovery and long-term mental health outcomes.

For more information about BH-CONNECT and available services, residents can contact their county behavioral health department.