Newsom threatens to redirect funding from underperforming counties over CARE Court rollout
California Governor Gavin Newsom warned March 3, 2026 he may redirect CARE Court funds from ten counties failing to meet the state benchmark, while pledging support, and oversight to boost implementation statewide.
Key takeaways
- Ten counties were flagged as underperforming (“CARE ICU”) for not meeting the state benchmark of 6.2 petitions per 100,000 residents.
- The state recorded 3,817 CARE Court petitions, 893 approved treatment agreements, and 32 court-ordered CARE plans, far below estimates of 7,000–12,000 people.
- Newsom said he could propose redirecting CARE Court funding in his May budget if counties don’t improve, while offering state support and new housing dollars.
What Newsom announced and the data behind it
At a March 3, 2026 press event in Alameda County, Governor Gavin Newsom publicly identified ten counties that did not meet the state’s implementation benchmark of 6.2 CARE Court petitions per 100,000 residents. The administration labeled the group the “CARE ICU” (Improvement and Coordination Unit) and warned it may redirect CARE Court funds in the governor’s May budget proposal if progress is not shown, while adding the state will provide assistance before cutting funding.
State-level metrics since CARE Court went statewide show:
- 3,817 total petitions filed;
- 893 judges-approved treatment agreements;
- 32 people placed into court-ordered CARE plans — far below initial estimates that 7,000 to 12,000 Californians might qualify under early projections.
The “CARE ICU” list and CARE Champions
The state named these 10 counties as underperforming: Fresno, Kern, Los Angeles, Monterey, Orange, Riverside, San Bernardino, San Francisco, Santa Clara, and Yolo. It also published a separate list of 10 “CARE Champions” praised for stronger integration: Alameda, Humboldt, Imperial, Marin, Merced, Napa, San Mateo, Santa Barbara, Sutter, and Tuolumne.
The administration made county-level data visible via a public dashboard at accountability.ca.gov, intended to let residents compare county performance and spotlight “CARE Champions.”
Why the governor is demanding action
Newsom said the rollout “has fallen short of expectations” and critics are not using CARE Court as intended. At the Alameda event he said,
“I’m happy to redirect every damn penny in these programs to the counties that are getting things done, period, full stop.”
He also emphasized a preference to help counties succeed before cutting funds.
Pushback from counties, advocates and directors
Several local leaders challenged the state’s reliance on a single petition-rate metric. For example:
- Orange County said it has the fifth-highest number of petitions and noted 79 residents are receiving housing, medication and services through CARE Court.
- Santa Clara County Executive James Williams cautioned that reducing complex implementation to “a single scorecard” ignores housing and treatment progress.
- San Francisco officials pointed to declines in street encampments and increased shelter and treatment access as evidence of progress.
Advocates and county behavioral health directors said the petition metric ignores prevention and early intervention work that keeps people out of crisis. Michelle Doty Cabrera, executive director of the County Behavioral Health Directors Association, said the metric does not account for successful diversion efforts. The California State Association of Counties noted counties are following the law as written.
State funding moves tied to CARE Court rollout
Alongside the warning, Newsom announced additional state dollars for housing and services, including:
- $131.8 million in Homekey+ funds to create 443 homes for people needing mental health and substance use services;
- $159 million in Homeless Housing, Assistance and Prevention (HHAP) funds—part of a larger $1 billion allocation from the 2024–25 budget.
Some counties flagged as underperforming — such as San Bernardino, Monterey, and Fresno — were also recipients of these awards. Newsom said any proposal to redirect CARE Court funds in May would require legislative approval.
Implications for the Imperial Valley (Imperial County)
Economic impact
Imperial County was named among the state’s 10 “CARE Champions,” potentially improving its prospects for future state housing and services dollars tied to CARE Court success. The Homekey+ and HHAP awards could support local construction and service jobs, and stabilize funding for mental health outreach and supportive housing networks.
Political consequences
The designation increases political pressure on Imperial Valley leaders to maintain and expand successful practices and raises the region’s profile during the May budget process. Neighboring underperforming counties may adopt Imperial strategies to avoid potential funding threats, reshaping regional collaboration.
Social and cultural effects
Improved CARE Court implementation could speed access to treatment and housing for Imperial Valley residents with severe mental illness, possibly reducing visible homelessness and public-health strains. Given the region’s large Latino and immigrant communities, expansion requires culturally competent outreach, Spanish-language resources, and engagement with family and faith-based networks.
Practical applications for residents and providers
- Accountability: Residents can review Imperial County’s CARE Court metrics on the state dashboard at accountability.ca.gov.
- Services: Local providers and family members should ask county behavioral health offices how CARE Court referrals are handled and where to get help for someone in crisis.
- Funding opportunities: Nonprofits and housing developers should monitor Homekey+ and HHAP grant cycles for potential funding tied to CARE Court implementation.
Reporting and sources
This article draws on the governor’s March 3, 2026 announcement and state data reported by KFIA, video of the governor’s remarks (Video), and the state dashboard at accountability.ca.gov.
Named CARE ICU counties: Fresno, Kern, Los Angeles, Monterey, Orange, Riverside, San Bernardino, San Francisco, Santa Clara, Yolo.
Named CARE Champions: Alameda, Humboldt, Imperial, Marin, Merced, Napa, San Mateo, Santa Barbara, Sutter, Tuolumne.
