WHAT YOU NEED TO KNOW: California is expanding its behavioral health workforce through two new programs designed to help Medi-Cal providers grow the number of professionals practicing in underserved areas.
SACRAMENTO — As part of California’s Mental Health for All Initiative, the Department of Health Care Access and Information (HCAI) is launching two new programs to strengthen the behavioral health workforce, particularly in Medi-Cal settings where access to care is most urgent. Through a loan repayment program and a grant program to support medical residents, California is building a stronger and more equitable behavioral health system.
“These investments will help build the behavioral health workforce California needs, especially in communities where provider shortages make it difficult for people to get timely care,” said Elizabeth Landsberg, HCAI Director. “By supporting students, providers, and training programs, we’re helping ensure more Californians can access needed behavioral health services.”
These programs are part of the BH-CONNECT Workforce Initiative, a key component of the Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) Section 1115 Demonstration.
“The BH-CONNECT initiative reflects California’s commitment to transforming behavioral health from the ground up,” said California Health and Human Services Agency Secretary Kim Johnson. “We’re not only expanding access, but we’re building a workforce that reflects, understands, and serves the real needs of Californians.”
Approved through a federal Section 1115 Medicaid waiver and implemented in partnership with the Department of Health Care Services (DHCS), the BH-CONNECT Workforce Initiative supports training, recruitment, and retention of behavioral health professionals who serve Medi-Cal and uninsured Californians. The Medi-Cal Behavioral Health Student Loan Repayment Program (MBH-SLRP) and the Medi-Cal Behavioral Health Residency Training Program (MBH-RTP) launched this month as the first two of five planned programs, representing a major step in expanding access to care that is responsive to the needs of California’s diverse communities.
WHY THIS MATTERS: California faces a growing demand for behavioral health services, particularly in underserved areas. The new BH-CONNECT Workforce Initiative programs address that need by:
- Reducing financial barriers for eligible behavioral health professionals who commit to working in settings serving significant numbers of Medi-Cal members through loan repayment support.
- Expanding psychiatric training capacity to prepare more residents and fellows to serve California’s most vulnerable populations.
- Targeting high-need areas, including rural and low-income communities.
Medi-Cal Behavioral Health Student Loan Repayment Program (MBH-SLRP)
This program provides loan repayment of up to $240,000 for eligible behavioral health professionals, including psychiatrists, psychologists, clinical social workers, and marriage and family therapists, who commit to providing care in California’s Medi-Cal delivery system for a minimum of two years.
- Eligibility: Eligible behavioral health providers working at or placed in approved Medi-Cal-serving sites.
- Award Amount: Up to $240,000 in student loan repayment per provider.
- Application Period: July 1 – August 15, 2025.
Medi-Cal Behavioral Health Residency Training Program (MBH-RTP)
This program provides up to $250,000 per residency or fellowship position, per year, to support psychiatry and addiction medicine training programs that serve Medi-Cal members.
- Eligibility: Psychiatry, psychiatric subspecialty, and addiction medicine programs that place trainees in Medi-Cal safety net settings.
- Award Amount: Up to $250,000 per position, per year.
- Application Period: July 15 – August 15, 2025.
In addition to these new Medi-Cal-specific investments, HCAI also administers the California State Loan Repayment Program (CA-SLRP), which also opened an application cycle on July 15. Applications must be submitted by 3 p.m. on September 15, 2025. The CA-SLRP provides educational loan repayment assistance to health care professionals working in federally designated Health Professional Shortage Areas. Unlike MBH-SLRP and MBH-RTP, which are designed specifically to expand California’s behavioral health workforce in Medi-Cal settings, CA-SLRP is open to a broader range of health professions and practice sites. Together, these programs are part of HCAI’s coordinated approach to address workforce shortages across California’s health care system and ensure underserved communities have access to timely, high-quality care.
BIGGER PICTURE: These workforce investments support the broader goals of the state’s Mental Health for All initiative by strengthening community-based behavioral health care and improving access for Medi-Cal members statewide. With support from federal and state partners, HCAI is helping to grow a workforce that can meet California’s evolving behavioral health needs, ensuring care is accessible, equitable, appropriate, and effective for all who need it.