California just took a step to improve and strengthen its 988 crisis care continuum. Here’s what that means.

Since launching in 2022, the 988 Suicide & Crisis Lifeline has connected over 1 million Californians to needed support, with monthly calls doubling and counselors de-escalating situations that once would have resulted in police response.

But implementation challenges have prevented California’s crisis response system from reaching its full potential.  To help close that gap, Governor Newsom signed AB 173, California’s 2026-27 health budget trailer bill, on September 18, 2026. The bill includes requirements to strengthen accountability, improve coordination, and modernize funding for California’s 988 crisis response system—directly addressing issues that have prevented California from having an integrated, fully functioning crisis response system. 

This language reflects AB 2093, introduced by Assemblymember Bauer-Kahan and co-sponsored by the Steinberg Institute. Below we outline what these new requirements are, what they amended from existing law, and what still needs to be done to create an integrated, well-functioning crisis response system.

History of California’s AB 988

The 988 Suicide and Crisis Lifeline launched nationwide in July 2022, replacing the longer National Suicide Prevention Lifeline number with a simple three-digit code accessible by call, text, or chat. Its purpose was clear: make it easier for people experiencing a mental health or substance use crisis to connect with trained counselors and local support.

In 2022, California passed AB 988, authored by Assemblymember Rebecca Bauer-Kahan and co-sponsored by the Steinberg Institute. Building on the federal launch of 988, the legislation established a sustainable funding and policy framework to develop a broader crisis response infrastructure around the lifeline.

AB 988 is unique in that it developed a five-year implementation framework and created sustained funding through a monthly surcharge on phone bills, similar to how 911 is funded. In this Five-Year Implementation Plan, submitted to the Legislature by California Health & Human Services Agency (CalHHS) in 2024, laid out four goals for building a truly comprehensive system by 2030: public awareness, statewide infrastructure and technology, high-quality response, and full integration of 988 with the rest of the crisis continuum, including mobile crisis teams and 911.

It also established a governance structure that involved CalHHS to oversee 988 implementation, California Governor’s Office of Emergency Services (Cal OES) to develop a 988-911 interoperability system, and the California Department of Health Care Services (DHCS) to oversee various 988 service components.

Through passing AB 988, the Legislature made a commitment: to build a comprehensive behavioral health crisis response system: someone to call, someone to come, and somewhere to go.

988 implementation challenges have impeded progress

988’s implementation challenges led AB 988 to be selected for a formal legislative Outcomes Review, part of a new initiative to evaluate how effectively recent policies are working in practice. The Outcomes Review hearing for 988, which took place on May 12, 2026, highlighted key structural challenges to address in improving implementation statewide:

Unclear statewide governance and accountability across multiple state departments

Under AB 988, responsibility for 988 was split across CalHHS, CalOES, and DHCS, each responsible for a different element of implementation. However, without a single, clear owner, accountability faltered, resulting in missed deadlines and delayed projects—including a fully interoperable 988-911 transfer system.

Limited and unstable funding hasn’t kept pace with demand

Since launching in July 2022, California’s 988 line has experienced a 57% increase in monthly contacts – but antiquated funding structures that rely on historic service levels rather than projected demand have left call centers under-funded and under-staffed. The impact of funding shortages is most seen in text and chat answer rates—in California, less than half of texts and chats are currently answered by counselors. 

988-911 interoperability still isn’t what was promised

The Technical Advisory Board established under AB 988 confirmed only “baseline interoperability” between 988 and 911: the same call-transfer capability that existed under the old legacy phone system, before 988 even launched. Reporting from NBC Bay Area found the state has spent $24.5 million on the call-transfer technology meant to fix this, and the project is now two years behind schedule.

Although CalOES created a draft transfer recommendations document with guidance on how and when to initiate transfers between 988 and 911, stakeholders say it isn’t enough, citing a lack of consideration for the role of mobile crisis units and the need for additional references, best practices, and successful model examples.

Mobile crisis coordination remains limited

The Outcomes Review planning document highlights that many 988 centers still don’t have a way of connecting to mobile crisis teams, undercutting the “someone to come” part of the promise. Making matters more urgent, the enhanced federal funding match supporting the Medi-Cal Mobile Crisis benefit is set to expire in April 2027.

How AB 173 addresses 988 implementation challenges

The 2026-27 health budget trailer bill tackles several of these challenges directly. Below are some of its most significant provisions:

Improves governance and accountability

AB 173 makes several changes to governance structure to improve accountability in implementing 988. Most notably, it requires CalHHS to create a new 988 System Governance Board to provide cross-agency coordination and oversight. It also gives DHCS more authority over 988 call center operations, including call center funding projections and designated 988 call center management.

Modernizes how 988 funds are distributed and calculated

AB 173 creates more specific parameters for how revenue from the 988 State Suicide and Behavioral Health Crisis Services Fund can be used. It specifically restricts revenue to be used for the operations of 988 centers, designated 988 centers, and mobile crisis teams.

It also requires DHCS to develop and regularly update a two-year statewide funding estimate for 988 centers, built through a public stakeholder process—a shift toward funding based on projected need rather than historical spending levels.

Creates a formal process for 988 call center operations

AB 173 sets up a new approval system for “designated 988 centers”. Starting no sooner than October 1, 2027, centers can apply to become DHCS-approved “designated 988 centers,” and by December 31, 2029, every center must have that approval to keep receiving 988 Fund dollars. DHCS will set the rules centers have to meet—things like staffing, training, and quality standards and will also have the power to inspect centers, require them to fix problems, and suspend or revoke their approval if they don’t comply.

Advances 988-911 interoperability accountability

CalOES still leads on building a 988-911 interoperability system, but AB 173 sets a real deadline and raises the bar for what “working” means. By December 31, 2029, CalOES, in consultation with DHCS, has to put a functioning system in place. And that system has to do more than what California has today: it needs real-time features like call merging and warm handoffs, instead of the basic call-transfer capability that currently exists. AB 173 also asks the Emergency Medical Services Authority (EMSA) to write voluntary statewide rules spelling out exactly when and how calls should move between 911 dispatch, 988 centers, and mobile crisis teams

Supports mobile crisis integration

AB 173 directs CalHHS, subject to appropriation, to develop recommendations for a sustainable mobile crisis funding system, including funding sources beyond the state General Fund, a direct response to the looming 2027 funding cliff for the Medi-Cal Mobile Crisis benefit.

Reopens a path for LGBTQ+-specific support

In 2024, the federal government discontinued “press 3,” the option that routed callers to specialized LGBTQ+ crisis support. AB 173 gives California a way to bring that support back at the state level. Each year, CalHHS has to check whether an adequate federal LGBTQ+ option exists. If it doesn’t, CalHHS can ask SAMHSA for permission to run press 3 through the state instead. Once that’s approved, California has 12 months to get the technology working and to contract with a qualified LGBTQ+-focused organization to staff it.

Learn more about the Steinberg Institute’s work on 988 here, and read our policy brief on setting the right outcome measures for 988 here.

Additional resource: AB 988 vs. AB 173