Funding Available for Behavioral Health Treatment and Service Facilities

In early May, Governor Newsom announced $3.3B in Behavioral Health Continuum Infrastructure (BHCIP) Round 1 grant funding for 124 projects across the state accounting for 213 mental health and/or substance use disorder (SUD) facilities. The Request for Applications (RFQ) for Round 2 of BHCIP funding for Unmet Needs was released later that month by the California Department of Health Care Services (DHCS), representing an opportunity for local jurisdictions and other entities, including Round 1 recipients, to fund behavioral health treatment and service facilities. Over $800M will be available for Round 2 funding.

The BHCIP Round 2: Unmet Needs grant will fund the construction, acquisition, and/or rehabilitation of real estate assets to expand the continuum of behavioral health treatment and service resources. DHCS will prioritize mental health community residential beds and crisis settings, as well as regional models aimed at constructing, renovating, and/or expanding community-based services. Projects must serve Medi-Cal members and vulnerable populations, including unhoused people, veterans, older adults, adults with disabilities, children, and youth.

Applicants must complete a pre-application consultation (PAC) before submitting an application – PACs must be requested by August 29, 2025. Applications are due October 28, 2025.

The LeSar portfolio of firms can assist counties and other stakeholders as they prepare for such funding, either through grant writing or our Capital Mapping Subscription Service, which maps potential funding sources and develops strategies for competitiveness. Please contact Jacqueline Woo, Senior Associate, Policy and Research, for more information. As health, housing, and homelessness continue to become further integrated, the firm’s expertise in these areas throughout California will ensure that clients receive leading-edge solutions to their needs.