10 projects from Newsom’s mental health bond were supposed to open in 2025. That didn’t happen

California’s Mental Health Bond Projects Face Significant Delays Despite Newsom’s Claims of Success

None of the mental health treatment facilities promised for 2025 under Governor Gavin Newsom’s $6.4 billion Proposition 1 have opened, according to a CalMatters investigation, contradicting the governor’s claims that the program is exceeding its goals.

The ballot measure, narrowly approved by California voters in 2024, was designed to create thousands of mental health treatment beds across the state. However, the initial round of projects has encountered substantial delays, with some completion dates pushed back by as much as two years, while others have been canceled entirely.

Last spring, the state awarded nearly half of the bond money in what Newsom described as “the fastest distribution of bond funds in California history.” Officials initially projected that 10 of the first 124 funded projects would be completed by the end of 2024.

None met that deadline. CalMatters confirmed that nine of those initial projects have been delayed, with revised completion dates ranging from summer 2025 to summer 2028. One project was canceled outright.

These setbacks could have far-reaching consequences for California’s broader mental health initiatives. Proposition 1 serves as a cornerstone of Newsom’s strategy to address homelessness and mental illness, providing crucial infrastructure for programs like CARE Court, which uses judicial authority to connect people with treatment services.

“Some of that has been impacted by, candidly, tariffs, supply chain issues,” Newsom acknowledged during a news conference Wednesday. “So there’s been some slippage in some of the projects. We’re deeply mindful and aware of that, but we’re just managing that on a daily basis.”

Despite the delays, the Newsom administration recently awarded the remaining $1.18 billion from the bond. In total, Prop 1 has funded 177 projects intended to create 6,919 residential treatment beds and 27,561 outpatient treatment slots—slightly exceeding the original targets.

“This is a point that needs to be emphasized: Exceeding the goal in record time,” Newsom stated, focusing on the funding allocation rather than actual facility openings.

Assemblymember Jacqui Irwin, who carried the bond proposal in the Legislature, praised the quick distribution of funds but emphasized the urgent need for these facilities to open. “While Prop. 1 allows these projects to go from concept to blueprints, they are not immune from supply chain challenges or competition for skilled labor that hinders construction of every type in our state,” said Irwin, a Democrat from Thousand Oaks.

The delays affect projects throughout California. In Hollister, a building intended for purchase with Prop 1 funds was unexpectedly sold to another buyer, forcing grantees to find an alternative property. In Los Angeles, one project faces a two-year delay after discovering the need for seismic retrofitting.

California’s Department of Health Care Services defended the timeline shifts as “expected and common” for large-scale construction projects. The department maintains regular communication with grantees and offers assistance with construction issues rather than penalizing them for delays.

In Placer County, nonprofit Koinonia Family Services declined nearly $2 million in funding and canceled its planned eight-bed residential facility for foster youth, citing concerns about long-term sustainability due to “changes in state and federal policy.”

Not all news is discouraging. In San Rafael, the Ritter Center secured $10.5 million to create 1,370 treatment slots. Though delayed by about six months, the project will transform a newly purchased building into an expanded healthcare facility, doubling the number of exam rooms and improving services for homeless and precariously housed clients.

“When people go to a low-income clinic or a place to get social services and it’s run down, it’s not reflective of the broader community,” said Cynthia Le Monds, chief development officer for the Ritter Center. “By having this dignified facility, we’re really making sure that we’re giving our patients and clients the very best services that they can receive.”

Beyond treatment facilities, Prop 1 is funding permanent housing for people with mental illness and substance use disorders through the governor’s Homekey+ program. So far, the state has awarded $768 million to create 2,260 homes, including 545 for veterans, with the first projects expected to be completed this summer.

The measure also redirects existing mental health funding, requiring counties to allocate a portion of revenue from the “millionaire’s tax” toward housing instead of other services. This shift has forced counties to cut programs like suicide prevention, mental health hotlines, and anti-stigma campaigns. San Diego County has already identified 29 programs to close.

“There will be challenging times ahead,” said Michelle Cabrera, executive director of the County Behavioral Health Directors Association. “Certainly some programs will need to be cut back or cut entirely.”

The funding shifts have been complicated by recent federal cuts to Medicaid, which counties had hoped would fill the gaps created by these program reallocations.