California Gov. Gavin Newsom’s administration said it was speeding up delivery of projects funded by a $6.4 billion mental health bond approved by voters in 2024, but nine of 10 initial projects expected to open in 2025 were delayed, according to a report released this week.
The state awarded nearly half of Proposition 1 bond money last spring, and when the administration rolled out the funding it said it expected 10 of the first 124 projects to be finished by the end of 2025. The expected openings did not happen, CalMatters found: nine of those initial projects were delayed, with updated completion dates ranging from this summer to summer 2028, and one project was cancelled.
Newsom’s administration has framed the bond as a cornerstone of efforts to help Californians living on the street with mental illness, including the creation of new inpatient treatment beds, outpatient treatment slots, and housing. Those in-patient beds and outpatient slots are intended to feed into broader mental health programs, the report said, including CARE Court, a process that uses courts to get more people into treatment.
During a news conference Wednesday, Newsom said the administration tried to fast-track Proposition 1 projects by smoothing permitting and other hurdles, but he acknowledged “snags.” He said some of the slippage “has been impacted by, candidly, tariffs, supply chain issues,” adding that the administration was “deeply mindful and aware” of the impact but “just managing that on a daily basis.”
In response to the delays, Assemblymember Jacqui Irwin—who carried the bond proposal in the Legislature—commended the state for awarding funds quickly but said the projects must open as soon as possible. In an email to CalMatters, she wrote that while the bond “allows these projects to go from concept to blueprints, they are not immune from supply chain challenges or competition for skilled labor,” and she added that “the legislature, the executive branch, and the public must demand these facilities open as quickly as possible.”
The report also described delays across California tied to issues ranging from property changes to construction complications. In Hollister, it said, a building intended to be purchased with Proposition 1 money was unexpectedly sold to someone else, forcing the grantee to scramble for a replacement property. In Los Angeles, another project was expected to be at least two years late after the grantee discovered the building required seismic retrofitting.
The California Department of Health Care Services said such shifts are common for large projects. In an email to CalMatters, the agency wrote that it is “expected and common” for completion dates to move, that the state checks in regularly with grantees on progress, and that it does not penalize grantees just for encountering delays. The department said that while most construction remains on schedule, some individual project timelines have shifted due to permitting, site conditions and construction pressures, including supply-chain strain it associated with President Trump’s tariffs.
Not all awards moved forward with the same outcome. In Placer County, the nonprofit Koinonia Family Services was awarded nearly $2 million for eight beds meant to provide short-term residential care for foster youth, but it declined the grant and cancelled the project. Koinonia said the decision reflected “changes in state and federal policy” that raised concerns about the project’s “long-term sustainability,” and it did not provide further detail when asked.
Other delays were linked to administrative hurdles and property readiness. In Costa Mesa, the report said nonprofit Encompass Housing won $31 million to create 50 beds for new mothers needing mental health and substance use treatment to stay with their babies, with an initial estimated completion date of winter 2025. It reported that Encompass CEO Deby Wolford said the organization had not purchased the property yet, citing “some delays” tied to the bond.
Despite the setbacks, the report said most projects were continuing. In Hollister, it said Youth Recovery Connections lost an initial bid to purchase a building, setting the project back about a year and a half before it pursued a larger replacement with double the office space and lower costs. In San Rafael, it said the Ritter Center won $10.5 million to open 1,370 treatment slots and bought a new building to renovate and expand services; the project is expected to open this summer, about six months later than the initial projection.
Beyond beds and outpatient slots, Proposition 1 is also tied to permanent housing through the Homekey+ program. The report said the state had awarded $768 million to create 2,260 homes, including 545 reserved for veterans, with the first projects due to be completed this summer.
It also said the ballot measure changes county mental health funding priorities by requiring counties to fund housing rather than other services with a share of revenue they receive from the “millionaire’s tax.” The report described counties as needing “financial gymnastics” as they reallocate money away from programs that are no longer prioritized—such as suicide prevention and mental health hotlines—into housing, and it said San Diego County has already identified 29 programs it plans to close.
This story was reported with support from the Rosalynn Carter Fellowship for Mental Health Journalism.
This story was originally published by CalMatters and distributed through a partnership with The Associated Press.