SACRAMENTO, Calif. — Behavioral health organizations and lawmakers are urging California Gov. Gavin Newsom to preserve funding for the state’s 988 and mobile crisis response system following the release of the governor’s May revision to the 2026-27 state budget.
According to the Steinberg Institute, while the revised budget preserves many of California’s ongoing behavioral health investments, concerns remain regarding the future of mobile crisis response programs.
The organization stated that the updated proposal would continue the January budget plan to make mobile crisis response an optional Medi-Cal benefit beginning in 2027.
Mobile crisis response programs are part of California’s broader 988 behavioral health crisis system, which is intended to provide “someone to call, someone to come, and somewhere to go” for individuals experiencing behavioral health crises.
These teams are designed to respond directly to people in crisis, stabilize situations within the community and connect individuals with appropriate community resources.
According to the Steinberg Institute, the current concern stems from the expiration of an enhanced federal Medicaid matching rate scheduled for April 2027.
The organization stated that once the enhanced funding expires, the governor’s proposal would shift financial responsibility for mobile crisis response programs onto counties while making those services optional rather than required under Medi-Cal.
Behavioral health advocates argue that this funding change could threaten programs counties have spent multiple years developing.
According to the statement, counties that choose to continue operating mobile crisis response programs could face annual costs ranging from $150 million to $200 million.
Advocates warn that some counties may have to reduce the size of their crisis response teams if state support is reduced.
The Steinberg Institute also argued that without mobile crisis teams, more individuals experiencing behavioral health emergencies could be directed to emergency departments, jails and crisis centers.
The organization stated that reducing community-based crisis response services could push California backward toward a system that relies more heavily on criminalization instead of providing proper treatment and care for individuals experiencing mental health crises.
Since the January budget proposal was introduced, behavioral health organizations, lawmakers and county leaders have opposed the funding changes.
In March, according to the Steinberg Institute, a coalition of 34 organizations sent a letter urging lawmakers to reject the proposed elimination of statewide mobile crisis funding and preserve the programs.
The statement also highlighted the efforts of California Assemblymember Rebecca Bauer-Kahan, who organized legislative support opposing the proposed funding shift.
According to the Steinberg Institute, a member letter signed by 37 additional legislators urged the Newsom administration and the Legislature to protect and preserve mobile crisis response programs and prevent counties from bearing those costs alone.
Advocates argue that the 988 and mobile crisis response systems are important components of California’s behavioral health framework.
According to the statement, these programs help ensure that individuals experiencing crises are connected with properly trained behavioral health responders instead of law enforcement or emergency detention systems.
The Steinberg Institute also argued that 988 and mobile crisis response services should not be considered optional because they play an important role in ensuring people have access to care during emergencies.
The organization stated that weakening these services could cause California’s behavioral health system to become disconnected despite investments already made in the statewide 988 crisis system.
The statement acknowledged Gov. Newsom’s efforts to reshape California’s behavioral health system but recommended that the administration continue funding mobile crisis response programs in the final budget.
According to the Steinberg Institute, preserving these services is critical to ensuring Californians continue to have access to community-based behavioral health care during crises.
The Steinberg Institute stated it will continue monitoring developments involving the final 2026-27 state budget and provide additional information as it becomes available.
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