Block grants for community mental health services

The Department of Health and Human Services Substance Abuse and Mental Health Services Administration awarded the California Department of Health Care Services $280.370 million on October 1, 2025, under the Block Grants for Community Mental Health Services program (CFDA 93.958) to provide comprehensive community mental health services to adults with serious mental illness and children with serious emotional disturbance across California.

The grant funds the delivery of community-based mental health services including outpatient treatment, case management, crisis intervention, peer support, and psychosocial rehabilitation through community mental health centers, child mental health programs, and consumer-directed programs. Up to 5 percent of grant funds may be used for administration. States are required to set aside 10 percent for programs demonstrating strong evidence of effectiveness targeting individuals with early serious mental illness, including psychotic disorders. Funding may not support inpatient services, cash payments to service recipients, facility construction or major equipment purchases, or financial assistance to non-public or for-profit entities.

The award runs through September 30, 2027, with performance at Sacramento, California. The California Department of Health Care Services receives the funding as the state-designated grantee and passes allocations to county behavioral health authorities and systems throughout California. Thirty-six sub-recipients received sub-awards on July 1, 2026, for county mental health block grant implementation in fiscal year 2026-2027, including county behavioral health departments and health and human services agencies across California's 58 counties and the city and county of San Francisco. Sub-recipients deliver mental health crisis response, supportive housing linkage, outpatient treatment, and community-based services within their respective jurisdictions.