HCAI outlines Medi‑Cal Behavioral Health training scholarship, timelines and service obligations

The Department of Health Care Access and Information (HCAI) on the webinar explained a new Medi‑Cal Behavioral Health Community‑Based Provider Training Program that will fund training costs for people preparing to become alcohol and other drug counselors, Medi‑Cal community health workers and Medi‑Cal peer support specialists.

HCAI Section Chief for Behavioral Health and Policy Angela Branch said the grant cycle will make up to $21,250,000 available statewide, with individual awards of up to $10,000 to cover eligible training and education costs. "Funds will be paid directly to the training or education provider," Branch said, describing how payments will flow under the BH Connect terms and conditions.

The program is part of BH Connect, California’s broader behavioral health transformation. Branch said federal approval of the BH Connect 1115 demonstration waiver and related state plan amendments (approved by the Centers for Medicare & Medicaid Services in December 2024) enables the state to use federal funds to expand community‑based services and workforce programs. HCAI said it and the California Department of Health Care Services will invest up to $1.9 billion across five workforce programs between 2025 and 2029.

Who can apply and what the award covers
Applicants are individuals, not institutions: people training for one of the three eligible professions will apply through HCAI’s online funding portal. HCAI will coordinate with the listed training program to verify eligibility; applicants for community health worker training may enter a program name free‑text so HCAI can validate it against state plan amendment criteria. The grant will cover tuition, required fees, textbooks, supplies and certification or exam costs; it will not pay living expenses.

Service obligations and qualifying work sites
Award recipients must accept a three‑year full‑time service obligation in a Medi‑Cal safety‑net setting. HCAI defines full time as at least 32 hours per week of direct client care (or 30 hours per week in school‑based behavioral health). Direct client care, as read from the draft grant guide during the webinar, "includes prevention, early intervention, assessment, treatment, counseling, procedures, patient self‑care, patient education, and documentation relating to those patient encounters," and covers face‑to‑face care, telehealth and first‑line supervision.

Qualifying practice settings listed by HCAI include Federally Qualified Health Centers (FQHCs), community mental health centers licensed by the California Department of Public Health, rural health clinics, hospitals and other Medi‑Cal enrolled behavioral health providers that meet minimum Medicaid/uninsured payer‑mix thresholds. HCAI said it can evaluate multiple worksites separately and will count time only at eligible sites toward the service obligation.

Deadlines, timeline and application process
HCAI officials said the application period opens March 16, 2026 (the grant guide will be published that day) and closes April 30, 2026 at 3 p.m.; award notices are anticipated in July or August 2026 with proposed start dates in August–September 2026. Training must begin by September 2026 and be completed by June 30, 2028; recipients’ full‑time service must begin by June 30, 2029 or within one year of completing training, whichever comes first. Applications and all required documents must be submitted through HCAI’s online funding portal.

Verification, employer role and breach consequences
HCAI staff said employers will not typically be contacted during the application phase; employer verification (site eligibility, NPI, hours worked, and a point of contact) will be collected through the portal during the service obligation monitoring period. Nathan (HCAI program staff) warned that if a grantee cannot fulfill the service obligation and does not meet waiver or suspension criteria they will be required to repay award funds and will be ineligible for future HCAI programs, describing the breach penalty as "fairly severe."

Questions left for the grant guide and launch webinar
Panelists repeatedly pointed attendees to the forthcoming grant guide and a launch webinar for technical details HCAI will publish on March 16, 2026 — including the full list of eligible training programs, scoring metrics for the competitive application, and precise payment timing. Webinar presenters said they would correct any inconsistent dates appearing on the public website and urged attendees to sign up for HCAI mailing lists for updates.

What happens next
The application will be live on HCAI’s funding portal on March 16, 2026. HCAI advised applicants with personal or sensitive questions to email mbhcbp@hca.gov and provided a BH Connect helpline for program questions. The agency also committed to posting the webinar recording and slides on its website within 7–10 business days.