Behavioral Health Funding Coming to LA County
- LACMA Staff
- Jun 2
- 3 min read
California’s most significant investment in behavioral health infrastructure is underway—and Los Angeles County is a central beneficiary. Funded by the passage of Proposition 1, Governor Gavin Newsom’s administration has announced more than $3.3 billion to expand behavioral health facilities statewide. This initiative will create over 5,000 residential treatment beds and more than 21,800 outpatient treatment slots across California. It will build upon other transformative efforts already in motion. For Los Angeles, this signifies a substantial investment in acute psychiatric hospitals, mental health rehabilitation centers, peer-led respite services, and substance use disorder (SUD) treatment programs.
Los Angeles County to Receive Over $1 Billion in Facility Investments
Of the statewide allocations, Los Angeles County will receive over $1 billion in grant funding spread across more than 30 projects. These awards will support a sweeping expansion of behavioral health services designed to serve individuals with serious mental illness, dual diagnoses, and those experiencing homelessness.
Among the most significant investments are:
Olive View Medical Center in Sylmar, which will receive $119.1 million to create a comprehensive Continuum of Care campus integrating a Mental Health Rehabilitation Center (MHRC), Psychiatric Health Facility (PHF), and a Short-Term Residential Facility (SRF).
The City of Lancaster, which secured $83.7 million to develop a new acute psychiatric hospital for the Antelope Valley.
The Los Angeles County Department of Mental Health, awarded $65 million to develop The Care Community on the Metropolitan State Hospital Campus in Norwalk, an expansive MHRC that will serve high-need patients with complex behavioral health conditions.
Nonprofits including Clare|Matrix, Fred Brown Recovery Services, and Homeboy Industries will expand their capacity to serve justice-involved individuals, families, and vulnerable populations.
Expanding the Full Continuum of Care
The awarded projects reflect California’s strategic move toward integrated, community-based behavioral healthcare. In Los Angeles County, these investments will fund:
10+ Mental Health Rehabilitation Centers (MHRCs) across Glendale, Norwalk, Sylmar, and downtown L.A.
Over 20 Adult Residential SUD Treatment Facilities, including specialty perinatal and dual-diagnosis programs.
Peer Respite Programs led by SHARE!, Homeboy Industries, and others to provide non-clinical, peer-led crisis care.
Youth and Geriatric Psychiatric Services, including projects by Vista Del Mar and the Los Angeles Jewish Home for the Aging.
The Importance of Behavioral Health Reforms
The enhancement of behavioral health infrastructure is vital for many reasons. First, it addresses the rising mental health crisis in communities. Improved access to care can lead to better patient outcomes. Furthermore, these facilities are designed to cater to a range of needs. They provide crucial services for those struggling with mental health issues and addiction.
Investing in diverse treatment options ensures that everyone can find the help they need, regardless of their circumstances. This holistic approach is essential for fostering healthier communities. It also plays a key role in the prevention of crises that often lead individuals to emergency services.
What This Means for Physicians
For Los Angeles physicians and healthcare leaders, this initiative is poised to reshape the behavioral health landscape. Here are key points to consider:
New Referral Avenues: Expanded capacity will ease access to psychiatric and SUD care, particularly for complex or hard-to-place patients.
Coordinated Transitions of Care: Physicians should prepare to collaborate more frequently with residential and outpatient providers as integration becomes a priority.
Workforce Demand & Clinical Opportunities: These projects will need psychiatrists, primary care physicians, addiction specialists, and behavioral health teams to meet rising demand.
Equity & Access: Many of the facilities will serve historically marginalized communities. Physicians may play a key role in ensuring patients are aware of and connected to new services.
The Role of Community Engagement
Involving the community in the planning and execution of these initiatives is essential. Stakeholders need to understand the specific needs of the populations they serve. Community engagement can lead to tailored programs that reflect these needs. When individuals feel heard and understood, they are more likely to seek help.
Physicians can facilitate this dialogue by connecting with community members and organizations. Building trust within the community can lead to improved health outcomes.
Systemic Change in Motion
“This is a historic transformation of California’s mental health and substance use disorder system,” said Governor Newsom.
As new facilities break ground and programs become operational, physicians should expect to see the impact on emergency department (ED) utilization, housing stability, and patient outcomes for some of the county’s most vulnerable populations.
Looking Forward: The Future of Behavioral Health
The future of behavioral health in California looks promising. As funding is allocated and programs launch, there is hope for improved care and reduced stigma surrounding mental health treatment. The innovative strategies being implemented today may set the standard for other states in the nation.
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