Governor Gavin Newsom released his May revision to the 2026-27 budget today, outlining a balanced budget proposal and maintaining many of California’s behavioral health investments already underway.
But one critical issue remains unresolved: the future of California’s 988 and mobile crisis response system.
Despite growing concern from lawmakers, counties, and behavioral health organizations, the updated budget appears to maintain the January budget proposal to make mobile crisis programs an optional benefit, putting the future of these critical crisis services at risk.
Federal funding expiration threatens California’s 988 and mobile crisis response systems
Mobile crisis response is a core part of California’s 988 vision: someone to call, someone to come, and somewhere to go. These teams help ensure people experiencing behavioral health crises are met by trained community responders, stabilized where they are, and connected to appropriate care.
But in April 2027, when the enhanced federal Medicaid matching rate expires, the Governor’s January budget would shift mobile crisis response from a required Medi-Cal benefit to an optional one—moving program costs onto counties.
Counties across California have already raised concerns about what this could mean for the crisis systems they have spent years building. CalMatters recently reported that counties choosing to continue mobile crisis response could face an annual cost of $150 million to $200 million, forcing some counties to shrink their crisis teams.
Without these teams, more people in crisis would be routed to emergency departments, jails, and crisis centers. As we stated in January, California cannot allow a funding cliff to push the state backward toward a status quo that criminalizes mental illness instead of responding with care.
Lawmakers, counties, and behavioral health leaders urge California to protect mobile crisis response
Since the January budget was released, behavioral health leaders have sounded the alarm about the plan for mobile crisis teams.
In March, 34 organizations, including the Steinberg Institute, sent a coalition letter urging lawmakers to reject the proposed elimination of statewide mobile crisis funding and to preserve these services.
State Assemblymember Rebecca Bauer-Kahan has also mobilized legislative support opposing this funding shift. A recent member letter signed by 37 other legislators urges the Administration and Legislature to protect mobile crisis response and prevent counties from being forced to carry the cost alone.
This broad support reflects a shared understanding: 988 and mobile crisis response are not optional services for people in crisis. They are essential to ensuring our behavioral health system delivers care to those most in need.
California must preserve mobile crisis response in the final budget
Governor Newsom has demonstrated a strong commitment to transforming California’s behavioral health system. But if California builds the front door to crisis care through 988 but allows mobile response to become optional, the system will remain fragmented.
We once again urge the Newsom administration to protect mobile crisis response programs in the final 2026-27 budget and ensure every Californian can access compassionate, community-based care when they need it most.
We will continue to provide updates as more information on the May revision budget proposal becomes available.