​Summary: Acknowledging the need to address fallout from the COVID‐19 crisis that it says has exacerbated “decades‐long inequalities” for struggling Californians, the administration of California Gov. Gavin Newsom released a proposed fiscal 2022 state budget that includes significant investments in mental health care.

Highlights of the $227.2 billion state budget proposal, which was released on Jan. 8, 2021, include a $1.75 billion housing and homelessness spending plan with a heavy focus on individuals with mental illness and a plan by next January to revive a Medi‐Cal transformation initiative designed to bring about greater integration of behavioral and general health care services.

Mental health policy and advocacy groups in the state are giving Newsom high marks for several aspects of the new budget proposal.