SAN FRANCISCO — Mayor Daniel Lurie has secured $27.6 million in state funding to significantly expand San Francisco’s behavioral health infrastructure, a key step in his administration’s broader “Breaking the Cycle” initiative to address homelessness, addiction, and mental health crises.
The funding, awarded through the state’s Behavioral Health Continuum Infrastructure Program (BHCIP), will support the addition of 73 new treatment beds across two facilities. The move is part of Lurie’s pledge to increase access to mental health care and addiction treatment, especially for residents experiencing homelessness.
“Under our Breaking the Cycle Plan, my administration is taking full advantage of every available resource to get people who are suffering off the streets, while reclaiming our public spaces,” Lurie said in a statement. “This funding is a strong first step, adding some of the beds and services our city needs most—including an expansion of locked subacute treatment for those with complex behavioral health needs.”
Targeted Investments in Behavioral Health Facilities
Of the total grant, approximately $21 million will go toward expanding the Behavioral Health Center at the Zuckerberg San Francisco General Hospital campus. The funds will add 57 locked subacute treatment beds, also known as mental health rehabilitation beds, which provide around-the-clock intensive psychiatric care and rehabilitative services to adults with serious mental illness or those under legal conservatorship.
Locked treatment facilities must meet stringent construction standards, making new development particularly challenging. The existing infrastructure at the General Hospital’s Behavioral Health Center will be renovated and upgraded using these funds to meet the expanded capacity.
An additional $6 million will be used to reopen the 7th Street Dual Diagnosis Residential Treatment Program, which will offer 16 beds for individuals with co-occurring mental health and substance use disorders. Previously run by a behavioral health provider, the facility was acquired by the city in 2024 as part of a debt settlement.
“To truly address our behavioral health crisis and provide every individual with a real chance at a healthier, more stable future, we must have the beds and the services at the right levels of care,” said Daniel Tsai, Director of San Francisco’s Department of Public Health. “This capital investment from the state is critical to expanding local treatment capacity for our most complex clients.”
Breaking the Cycle: A Citywide Strategy
Lurie first unveiled the “Breaking the Cycle” plan in March, positioning it as a transformative approach to San Francisco’s homelessness and behavioral health challenges. The initiative includes a multi-phase strategy focused on rapidly moving individuals from the streets into shelter or treatment, while expanding long-term care options and streamlining city services.
During the first 100 days, Lurie’s administration aims to reconfigure how people are routed through the system, launch a revamped outreach model, and expedite placements into housing and treatment programs.
By six months, the city plans to increase shelter bed capacity and collaborate with nonprofit organizations to enhance service delivery. Within the first year, Lurie intends to leverage additional state and federal funding, modernize city data and tech systems, and reevaluate the structure of departments overseeing health, homelessness, and housing.
“We’re not only connecting people with the care they need but also holding ourselves accountable for visible, measurable results,” Lurie said.
Criticism from Advocacy Groups
Despite the administration’s ambitious goals, not all stakeholders are convinced of the plan’s effectiveness. Critics argue that Lurie’s strategy mirrors past efforts that have failed to produce lasting change.
“This is more of the same,” said Jennifer Friedenbach, Executive Director of the Coalition on Homelessness. “We need bold, evidence-based approaches—not recycled methods that haven’t worked. San Francisco has tried increasing beds and services without addressing systemic root causes, and we’re seeing the consequences.”
Friedenbach emphasized the importance of prioritizing housing-first models and trauma-informed care over short-term interventions and increased enforcement.
Looking Ahead
With substantial state backing now secured, the Lurie administration faces mounting pressure to demonstrate that its investments can yield real progress in reducing homelessness and improving access to behavioral health services. City officials say renovations at both the General Hospital site and the 7th Street facility are expected to begin later this year.
As San Francisco grapples with a growing behavioral health crisis, the success—or failure—of the “Breaking the Cycle” initiative could shape the city’s public health and housing policies for years to come.
