Prop. 1 funding is rolling out fast. Here’s what cities need to know
By Caroline Grinder, legislative affairs lobbyist
The state is fast-tracking its implementation of Proposition 1, the behavioral health bond passed in March. The Cal Cities-supported ballot measure provides billions in new funding for behavioral health housing for people experiencing homelessness. 
State officials will roll out $3.3 billion in funding for behavioral health housing this summer. Cities can apply for these funds, half of which is reserved specifically for cities and counties. A second round of funding will be available in mid-2025. The state plans to award all funding — $6.38 billion in total — no later than 2026.
The Department of Health Care Services (DHCS) noted several important requirements in its recently released bond guidance. Notably, all applicants must be supported by the county behavioral health director where the project is located. Applicants must also base their proposals on local behavioral health needs data, community engagement, and regional collaboration.
These requirements are critical. They will help ensure the state directs the funding to the projects that will make the most impact in communities throughout the state. Cal Cities strongly supports these requirements and has consistently urged DHCS to consider the unique needs of each community when awarding funds.
Under Prop. 1, counties must also now submit three-year comprehensive behavioral health services plans, which include fiscal transparency and enhanced data reporting requirements. The state will release related guidance in early 2025, and the new plans will go live in July 2026.
As part of the rollout, Gov. Gavin Newsom launched mentalhealth.ca.gov, a one-stop-shop for people seeking mental health resources. This website also includes information about the ongoing changes to the state’s behavioral health system and will soon include a way to monitor counties' implementation of several key programs, including Prop. 1, CARE Court, and conservatorship reform.
Cal Cities will continue to provide updates and educational opportunities about Prop. 1. Several resources are already available to cities:
- Prop. 1 fact sheet.
- DHCS Listserv, which provides real-time updates.
- DHCS stakeholder engagement opportunities.
- Prop. 1 briefing slide deck.
- DHCS behavioral health transformation website.
Cal Cities’ 2024 Advocacy Priorities focus on securing investments to address homelessness and boost the supply of affordable housing. For years, Cal Cities has called on the Legislature and the Governor to provide ongoing funding to address these crises. The investments made through Prop. 1 align with these goals and are a step forward in addressing the needs of vulnerable Californians.