After Billy Jack in sentenced to four years in prison for the "involuntary manslaughter" of the first film, the Freedom School expands and flourishes under the guidance of Jean Roberts. The utopian existence of the school is characterized by everything ranging from "yoga sports" to muckracking journalism. The diverse student population airs scathing political exposes on their privately owned television station. The narrow-minded townspeople have different ideas about their brand of liberalism. Billy Jack is released and things heat up for the school. Students are threatened and abused and the Native Americans in the neighboring village are taunted and mistreated. After Billy Jack undergoes a vision quest, the governor and the police plot to permanently put an end to their liberal shenanigans, leaving it up to Billy Jack to save the day.

In 2005, the only thing hurting Los Angeles Times columnist Steve Lopez more than his face from a recent bike accident was his pressing need for story ideas. That is when he discovers Nathaniel Ayers, a mentally ill, homeless street musician who possesses extraordinary talent, even through his half-broken instruments. Inspired by his story, Lopez writes an acclaimed series of articles about Ayers and attempts to do more to help both him and the rest of the underclass of LA have a better life. However, Lopez's good intentions run headlong in the hard realities of the strength of Ayers' personal demons and the larger social injustices facing the homeless. Regardless, Lopez and Ayers must find a way to conquer their deepest anxieties and frustrations to hope for a brighter future for both of them.

Horsemouth sets himself up in business selling records but when gangsters steal his bike things start to turn nasty. As tensions build, Horsemouth and friends plot to end the gangsters reign of terror and restore justice to the people of Kingston(?)