$21 Million State Grant Awarded to County of San Luis Obispo Behavioral Health

Author: Behavioral Health
Date: 1/27/2026 11:14 AM

Funds will support a new "Pathways Home" project in Paso Robles to address gaps in mental health and substance use disorder services for youth and adults.

The Governor's announcement in May 2025 highlighted the over $3 billion being awarded in this first round of BHCIP competitive grants, and the importance of their being "shovel ready." The Department of Health Care Services (DHCS) received nearly 300 grant applications and will ultimately fund 118 projects accounting for 199 mental health and/or substance use disorders facilities. These facilities will significantly expand access to care for Californians experiencing mental health conditions and substance use disorders (SUD).

"Californians demanded swift action to address our state's behavioral health crisis when they voted for Proposition 1 in March 2024," said California Governor Gavin Newsom in his announcement. "These launch-ready projects will build and expand residential beds and treatment slots for those who need help. Whether it's crisis stabilization, inpatient services, or long-term treatment, we're ensuring that individuals can access the right care at the right time."

The project, which aligns with the Behavioral Health Department's five-year strategic operating plan , is estimated to be completed in Fiscal Year 2028-2029. Preliminary plans for the project include:

• A new 16-bed Psychiatric Health Facility to increase intensive behavioral health services for youth and adults within a secure environment (12 beds for adults and 4 beds for youth).
• The first adult crisis residential treatment program in SLO County which will offer short-term support to community members navigating through a mental health crisis (8 beds for adults).
• The first children and youth crisis residential treatment program in the San Luis Obispo (and Santa Barbara region) designed to bridge the gap between acute inpatient care and reintegration into the community via outpatient care (2-4 beds for youth).

The Paso Robles facility is expected to reduce out-of-county placements, especially for local youth who need crisis services. The current 16-bed Psychiatric Health Facility (PHF) located at the Health Agency campus in San Luis Obispo is often near or at capacity and only serves adults. Additionally, SLO County is one of the few coastal counties without any crisis residential treatment programs.

"We are currently transporting individuals from their community, sometimes up to six hours away, to receive psychiatric care," says Graber. "Imagine sending a loved one, a child, or a grandchild away at a time when they need their family the most. This not only creates immense stress on clients and their families but creates a disjointed continuum of care when they return home."

From July 2024 to June 2025, SLO County Medi-Cal community members ages 21 and older totaled 376 admissions and 3,268 out-of-county bed days at inpatient psychiatric hospitals (an average of almost 9 beds/day). During that same time, 173 admissions and 1,330 out-of-county bed days were utilized by Medi-Cal members ages 0-20. The need is growing with the recent expansion of Senate Bill 43, which allows an individual to be placed on a psychiatric hold for grave disability due to a severe substance use disorder.

The project has several economic benefits including job creation, reduction of caregiver and travel costs that come with out-of-county treatment, and a reduction in public safety costs and hospitalizations, as the local facility will provide quicker transitions from hospitals to treatment and additional crisis stabilization services.

Graber explains, "Transporting clients out of County can lead to higher re-admission rates, costs, and strain on our local crisis response as it often takes extra coordination to ensure timely transportation and appropriate care for those in crisis. This facility will significantly reduce these issues and allow community members to utilize local programs and resources which will provide more seamless care for them through their recovery journey."

The Health Agency will be providing a presentation on the project at the City of Paso Robles City Council meeting on Tuesday, February 3. More information about SLO County's Behavioral Health Continuum Infrastructure Program (BHCIP) project can be found online at www.slocounty.ca.gov/BHCIP .

ABOUT PROPOSITION ONE:
In March 2024, California voters passed Proposition 1, which included the Behavioral Health Infrastructure Bond Act of 2024 (BHIBA), a $6.38 billion general obligation bond to develop an array of behavioral health treatment, residential care settings, and supportive housing to help provide appropriate care facilities for Californians experiencing mental health conditions and substance use disorders. More information can be found on the Department of Healthcare Services (DHCS) website .