Governor Gavin Newsom Announces $291 Million for Housing and Behavioral Health, Calls Out Underperforming Counties

Governor Gavin Newsom announced new accountability measures to speed up the adoption of CARE Court and awarded $291 million to support housing and behavioral health services across the state. 

This will boost the implementation of the Community Assistance, Recovery, and Empowerment (CARE) Act and accelerate housing and treatment expansion through Proposition 1 and Homeless Housing, Assistance, and Prevention (HHAP) funding. 

CARE offers treatment and stability to those living with severe mental illness. 

Newsom is designating 10 communities leading the state in implementing the CARE Act as ‘CARE Champions.’ Ten underperforming counties placed on an “improvement” list to bolster the implementation will receive targeted state support. 

CARE Champions have successfully adopted CARE Court and have the highest petition rates on a per capita basis. The state’s first cohort of CARE Champions are: 

• Humboldt
• Tuolumne
• Marin
• Napa
• Merced
• Sutter
• Alameda
• Santa Barbara
• San Mateo
• Imperial

While there have been success stories of recovery and resilience through CARE Court, Newsom noted that many counties are still lagging behind their peers.

These 10 counties, which will receive additional support through California’s CARE Improvement and Coordination Unit (ICU), have been designated as ‘CARE ICU.’ The 10 counties are: 

• Santa Clara
• San Bernardino
• Orange
• Los Angeles
• Kern
• Riverside
• Yolo
• Monterey
• Fresno
• San Francisco

“Local leaders have a moral and legal obligation to deliver this transformational tool for those who need it most,” he said. 

County governments have a MORAL and LEGAL obligation to implement the CARE Act’s proven solutions for unsheltered homelessness. pic.twitter.com/FKzyhuNboD

— Governor Gavin Newsom (@CAgovernor) March 2, 2026

What is the CARE Act?

The CARE Act is the state’s initiative to modernize California’s behavioral health system and address homelessness. The act aims to empower individuals suffering from untreated or undertreated schizophrenia and other psychotic disorders to get adequate treatment and housing. 

CARE helps to connect individuals with a team of providers and support, under the guidance of a civil court judge, to ensure those who require voluntary treatment do not have to go through the process by themselves. 

Although CARE Court is overseen by a civil court judge, it is not punitive, according to the release. 

The process begins with a petition to determine eligibility, and can be submitted by the individual, a family member, first responder, or a mental health professional. 

In 2023, CARE Court programs were started in eight counties and were fully implemented in all 58 counties by December 2024, according to the release. Since then, over 3,800 petitions have been submitted to courts. 

Additionally, counties have reported more than 4,000 CARE diversions, cases where people considered for CARE have been reached and connected to services without the need to engage the court. 

Over 1,851 individuals have continued through the CARE Court process, according to the release.