California DHCS Rescinds $50 Million Grant To Palomar Health Behavioral Health Institute

The California Department of Health Care Services (DHCS) rescinded its conditional grant of $50 million in Proposition 1 bond funds for the Palomar Health Behavioral Health Institute project to build a new psychiatric hospital. Palomar Health had applied for funding for the project through the Proposition 1 Bond Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready grants. To access the funding, the grantee was responsible for raising matching funds. DHCS stated that Palomar Health failed to meet the match documentation requirements. On August 18, 2025, DHCS rescinded the grant.

The BHICP Launch Ready grants are a provision of . . .