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$3.3 billion available for mental health beds as Newsom jump-starts Prop. 1 spending

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.3 billion available for mental health beds as Newsom jump-starts Prop. 1 spending

Gov. Gavin Newsom announced Tuesday that the state will make $3.3 billion in funding available by July to begin building inpatient and outpatient mental health treatment centers as part of a massive effort to transform California’s mental health system and address the homelessness crisis.

The money is the first tranche of a $6.4-billion bond authorized by voters when they narrowly approved Proposition 1 in March.

Newsom traveled to a new facility in San Mateo County to make the announcement — to underscore, his office said, how many more such facilities are needed and how his hard-fought mental health measure can transform care for Californians.

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Newsom has framed Proposition 1 as an essential part of the state’s strategy to address the homelessness crisis. The plan includes a controversial push to compel people with severe mental illness and substance disorders into care. With the bond funding, it also makes billions of dollars available to build more beds and housing for treatment.

“In a matter of weeks, $3.3 billion will go out and we’ll quickly approve those plans,” Newsom told reporters outside a Redwood City treatment facility that plans to add more housing once money funnels in this summer. “In a matter of months, not a matter of years.”

Newsom also urged counties to sign up early for CARE Court, another program he has championed to help resolve the state’s mental health and homelessness crisis. Counties have until the end of the year to open specialized courts that offer voluntary treatment and services. San Mateo County, south of San Francisco, recently became the ninth county to sign up.

“Counties don’t have to wait until December. Let’s go. Get those applications going,” he said.

When the proposition passed, Newsom said “this historic reform will only succeed if we all kick into action immediately — state government and local leaders, together.”

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This week, his staff said the governor was doing his part: This first round of funding wasn’t promised until the fall.

For the record:

9:11 a.m. May 14, 2024An earlier version of this article said Proposition 1 expands the criteria for the detention, treatment and conservatorship of people with severe mental illness. That policy is in a separate bill Newsom signed last year.

In addition to spearheading the construction or rehabilitation of more than 10,000 treatment beds and over 45,000 outpatient treatment slots, Proposition 1 reforms California’s 20-year-old Mental Health Services Act to improve care and support for people with serious mental health issues. A separate bill signed last year, Senate Bill 43, expands the criteria for the detention, treatment and conservatorship of people with severe mental illness — an effort that was strenuously opposed by some civil liberties advocates.
The pot of money available for project applications in July is specifically earmarked to build or refurbish treatment centers and clinics. Counties, cities, tribes, nonprofits and for-profit companies will all be eligible to apply for funding.

To qualify, construction projects must have support from their county mental health department, and they must commit to treating patients with Medi-Cal as well as private insurance.

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All projects are required to put up matching funds or collateral. That could include land or a building, as well as a funding stream, such as a pledge from a healthcare provider to send patients there or from the opioid settlement, in which pharmaceutical companies and distributors are paying the state millions to help address the harms of the epidemic of addiction.

Once grant applications arrive, officials said they could be approved within three months, meaning money could be distributed around the end of the year.

Later in the year, officials said they planned to open a new round of grants to build and rehabilitate more than 13,000 permanent supportive housing units.

Then, next year, officials will open another $1 billion to support additional buildings or programs, they said.

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Video: Fed Chair Responds to Inquiry on Building Renovations

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Video: Fed Chair Responds to Inquiry on Building Renovations

new video loaded: Fed Chair Responds to Inquiry on Building Renovations

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Fed Chair Responds to Inquiry on Building Renovations

Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

“Good evening. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead, monetary policy will be directed by political pressure or intimidation.” “Well, thank you very much. We’re looking at the construction. Thank you.”

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Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

By Nailah Morgan

January 12, 2026

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio has shut down its out-of-state abortion travel fund after a new Texas law that prohibits the use of public funds to cover abortions and a lawsuit from the state challenging the city’s fund.

City Council members last year approved $100,000 for its Reproductive Justice Fund to support abortion-related travel, prompting Texas Attorney General Ken Paxton to sue over allegations that the city was “transparently attempting to undermine and subvert Texas law and public policy.”

Paxton claimed victory in the lawsuit on Friday after the case was dismissed without a finding for either side.

WYOMING SUPREME COURT RULES LAWS RESTRICTING ABORTION VIOLATE STATE CONSTITUTION

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Texas Attorney General Ken Paxton claimed victory in the lawsuit after the case was dismissed without a finding for either side. (Hannah Beier/Bloomberg via Getty Images)

“Texas respects the sanctity of unborn life, and I will always do everything in my power to prevent radicals from manipulating the system to murder innocent babies,” Paxton said in a statement. “It is illegal for cities to fund abortion tourism with taxpayer funds. San Antonio’s unlawful attempt to cover the travel and other expenses for out-of-state abortions has now officially been defeated.”

But San Antonio’s city attorney argued that the city did nothing wrong and pushed back on Paxton’s claim that the state won the lawsuit.

“This litigation was both initiated and abandoned by the State of Texas,” the San Antonio city attorney’s office said in a statement to The Texas Tribune. “In other words, the City did not drop any claims; the State of Texas, through the Texas Office of the Attorney General, dropped its claims.”

Texas Attorney General Ken Paxton said he will continue opposing the use of public funds for abortion-related travel. (Justin Lane/Reuters)

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Paxton’s lawsuit argued that the travel fund violates the gift clause of the Texas Constitution. The state’s 15th Court of Appeals sided with Paxton and granted a temporary injunction in June to block the city from disbursing the fund while the case moved forward.

Gov. Greg Abbott in August signed into law Senate Bill 33, which bans the use of public money to fund “logistical support” for abortion. The law also allows Texas residents to file a civil suit if they believe a city violated the law.

“The City believed the law, prior to the passage of SB 33, allowed the uses of the fund for out-of-state abortion travel that were discussed publicly,” the city attorney’s office said in its statement. “After SB 33 became law and no longer allowed those uses, the City did not proceed with the procurement of those specific uses—consistent with its intent all along that it would follow the law.”

TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES

Texas Gov. Greg Abbott signed a law in August that blocks cities from using public money to help cover travel or other costs related to abortion. (Antranik Tavitian/Reuters)

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The broader Reproductive Justice Fund remains, but it is restricted to non-abortion services such as home pregnancy tests, emergency contraception and STI testing.

The city of Austin also shut down its abortion travel fund after the law was signed. Austin had allocated $400,000 to its Reproductive Healthcare Logistics Fund in 2024 to help women traveling to other states for an abortion with funding for travel, food and lodging.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

California Atty. Gen. Rob Bonta announced Sunday that he would not run for California governor, a decision grounded in his belief that his legal efforts combating the Trump administration as the state’s top prosecutor are paramount at this moment in history.

“Watching this dystopian horror come to life has reaffirmed something I feel in every fiber of my being: in this moment, my place is here — shielding Californians from the most brazen attacks on our rights and our families,” Bonta said in a statement. “My vision for the California Department of Justice is that we remain the nation’s largest and most powerful check on power.”

Bonta said that President Trump’s blocking of welfare funds to California and the fatal shooting of a Minnesota mother of three last week by a federal immigration agent cemented his decision to seek reelection to his current post, according to Politico, which first reported that Bonta would not run for governor.

Bonta, 53, a former state lawmaker and a close political ally to Gov. Gavin Newsom, has served as the state’s top law enforcement official since Newsom appointed him to the position in 2021. In the last year, his office has sued the Trump administration more than 50 times — a track record that would probably have served him well had he decided to run in a state where Trump has lost three times and has sky-high disapproval ratings.

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Bonta in 2024 said that he was considering running. Then in February he announced he had ruled it out and was focused instead on doing the job of attorney general, which he considers especially important under the Trump administration. Then, both former Vice President Kamala Harris and Sen. Alex Padilla (D-Calif.) announced they would not run for governor, and Bonta began reconsidering, he said.

“I had two horses in the governor’s race already,” Bonta told The Times in November. “They decided not to get involved in the end. … The race is fundamentally different today, right?”

The race for California governor remains wide open. Newsom is serving the final year of his second term and is barred from running again because of term limits. Newsom has said he is considering a run for president in 2028.

Former Rep. Katie Porter — an early leader in polls — late last year faltered after videos emerged of her screaming at an aide and berating a reporter. The videos contributed to her dropping behind Riverside County Sheriff Chad Bianco, a Republican, in a November poll released by the UC Berkeley Institute of Governmental Studies and co-sponsored by The Times.

Porter rebounded a bit toward the end of the year, a poll by the Public Policy Institute of California showed, however none of the candidates has secured a majority of support and many voters remain undecided.

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California hasn’t elected a Republican governor since 2006, Democrats heavily outnumber Republicans in the state, and many are seething with anger over Trump and looking for Democratic candidates willing to fight back against the current administration.

Bonta has faced questions in recent months about spending about $468,000 in campaign funds on legal advice last year as he spoke to federal investigators about alleged corruption involving former Oakland Mayor Sheng Thao, who was charged in an alleged bribery scheme involving local businessmen David Trung Duong and Andy Hung Duong. All three have pleaded not guilty.

According to his political consultant Dan Newman, Bonta — who had received campaign donations from the Duong family — was approached by investigators because he was initially viewed as a “possible victim” in the alleged scheme, though that was later ruled out. Bonta has since returned $155,000 in campaign contributions from the Duong family, according to news reports.

Bonta is the son of civil rights activists Warren Bonta, a white native Californian, and Cynthia Bonta, a native of the Philippines who immigrated to the U.S. on a scholarship in 1965. Bonta, a U.S. citizen, was born in Quezon City, Philippines, in 1972, when his parents were working there as missionaries, and immigrated with his family to California as an infant.

In 2012, Bonta was elected to represent Oakland, Alameda and San Leandro as the first Filipino American to serve in California’s Legislature. In Sacramento, he pursued a string of criminal justice reforms and developed a record as one of the body’s most liberal members.

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Bonta is married to Assemblywoman Mia Bonta (D-Alameda), who succeeded him in the state Assembly, and the couple have three children.

Times staff writer Dakota Smith contributed to this report.

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