State builds upon billions of dollars in behavioral health investment by awarding $127 million in grants for Prop 36 and Prop 47

SACRAMENTO – Building on multi-billion dollar investments into behavioral health services to treat people experiencing mental health and substance abuse disorders and the $617 million already distributed to local communities from Prop 47 savings, Governor Gavin Newsom today announced the state is awarding a new round of funding — $127 million — to local governments to support their implementation of substance abuse treatment and mental health service efforts, including for Prop 36.

Specific to mental health services, substance-use disorder treatment and diversion programs, 23 grants will go to local governments and tribal communities. More than 60% of the funding will go toward programs that will provide the type of treatment mandated by Prop 36.

“California is tackling crime while investing in programs that address the mental health and drug issues on our streets. Families have a right to safe streets and communities — and this funding helps us keep that promise.”

Prop 36 created a “treatment-mandated felony,” but no actual treatment. It aimed to coerce repeat drug offenders into behavioral health treatment by using the threat of felony sanctions, but without providing funding to develop the required treatment plans or provide treatment. Governor Newsom has been focused on building the necessary behavioral health programs since long before Prop 36.

California has long seen the interrelatedness between investments in mental health reform and the ultimate results in our overall public safety. 

Comprehensive reforms to help Californians

More than 1.2 million adults in California live with a serious mental illness, and 1 in 10 residents meet the criteria for a substance use disorder. California’s mental health system was dismantled under then-Governor Reagan, leaving the criminal justice system as the major way for people to get the help they need. 

In 2024, California voters approved Proposition 1, which created more than $6.4 billion in funding to help transform its behavioral health system and provide support and care to those who need it most. This is part of Governor Newsom’s strategy to reduce homelessness, improve public safety and help communities feel safer. 

Governor Newsom has taken on transformational reforms to create a continuum of care, relieve an overburdened criminal justice system and provide local partners with funding to advance these efforts. This strategy is producing strong results. In addition to reduced crime in California and individual cities throughout the state, California is outperforming the nation in turning around the national homelessness crisis. 

Grant funding for these programs have been a success

On top of the $100 million approved in the latest state budget for Prop 36, the current Board of Community and State Corrections (BSCC) grant program includes drug and mental health treatment programs eligible under both Prop 47 and Prop 36. Although Prop 36 created a treatment-mandated felony but no actual treatment, the BSCC is using its discretion to use funding from Proposition 47 for this purpose.

“The Proposition 47 grant program continues to fund important initiatives that create meaningful pathways to recovery and stability,” said BSCC Board Chair Linda Penner. “We are pleased to award funding to critical programs that will continue to build stronger, safer communities by expanding the services and interventions that make change possible.” 

Of the 23 grantees, nine will implement new Prop 36 programs, or expand existing programs to include Prop 36 programs. A full list of Prop 47 grantees can be found here. Grantee program summaries are also available, which identify the participants they intend to serve. This award represents the fifth round of three-year grants that the BSCC has made available. 

Prop 47 programs have shown to be successful. A comprehensive evaluation of Cohort 2 program participants indicated that recidivism was cut by more than half for those who received services.  A mid-cycle evaluation of Cohort 3 program participants identified a 41% decrease in unemployment and a 70% decrease in homelessness, both factors highly correlated with recidivism.

Higher incarceration rates mean less money for communities 

Prop 47 funding will help Prop 36 programs – for now; however, as incarceration rates go up due to Prop 36, available funding will go down because of reduced savings. Prop 36 jeopardizes vital funding and resources for mental health and drug treatment, housing services, and K-12 school programs. 

Currently, funding for this grant program is available through savings generated by Prop 47, which reduced penalties for some nonviolent crimes from felonies to misdemeanors.

Since 2014, these grants have dispersed more than $617 million to fund programs such as housing assistance, voluntary or mandated substance-use disorder and mental health treatment, job training, and civil legal services, in order to overcome barriers to employment and housing. 

Since its inception, Prop 47 savings have generated close to $1 billion in available funding, with 65% of state savings going towards mental health treatment, substance use disorder treatment and diversion programs, 25% going to K-12 schools, and 10% going to victims services.

Funding for public safety

California has invested $1.7 billion since 2019 to fight crime, help local governments hire more police, and improve public safety. In 2023, as part of California’s Public Safety Plan, the Governor announced the largest-ever investment to combat organized retail crime in state history, an annual 310% increase in proactive operations targeting organized retail crime, and special operations across the state to fight crime and improve public safety. As part of the state’s largest-ever investment to combat organized retail crime, Governor Newsom announced last year that the state distributed $267 million to 55 communities to help local communities combat organized retail crime. These funds have enabled cities and counties to hire more police, make more arrests, and secure more felony charges against suspects.

Last August, Governor Newsom signed into law the most significant bipartisan legislation to crack down on property crime in modern California history. Building on the state’s robust laws and record public safety funding, these bipartisan bills offer new tools to bolster ongoing efforts to hold criminals accountable for smash-and-grab robberies, property crime, retail theft, and auto burglaries. While California’s crime rate remains at near-historic lows, these laws help California adapt to evolving criminal tactics to ensure perpetrators are effectively held accountable.

Funding for mental health

Through voter-approved Proposition 1, there’s more than $6 billion in funding for mental health reforms and permanent supportive housing, which includes $4.4 billion to construct, acquire and expand properties and invest in mobile infrastructure for behavioral health and substance abuse treatment — also known as the Behavioral Health Continuum Infrastructure Program — BHCIP. Learn more here.