The "defunding" of mental institutions in the United States was decisively initiated by the deinstitutionalization movement in the 1950s and 1960s. In the 1950s, this movement gained momentum through a significant shift in philosophy and the introduction of antipsychotic drugs, which empowered individuals to effectively manage their symptoms. In the 1960s, President John F. Kennedy unequivocally supported this movement by signing the Community Mental Health Act in 1963. This landmark legislation allocated essential funding for community-based treatment facilities, establishing them as viable alternatives to large institutions. The transition involved a clear reduction in state funding for large psychiatric hospitals, reallocating those resources toward community-based care. This shift was driven by multiple factors: the advancement of antipsychotic medications, a growing civil rights emphasis on patient liberty, an urgent need to eliminate inhumane conditions, and pressing fiscal incentives for states to shut down institutions and reduce costs.