President Reagan's administration implemented policies that led to the defunding of mental hospitals primarily due to a shift towards deinstitutionalization, which aimed to move patients out of large, state-run facilities and into community-based care. This approach was based on the belief that individuals with mental illness could live more fulfilling lives in less restrictive environments. However, the initiative was not adequately supported by sufficient community resources, leading to challenges in care and an increase in homelessness and incarceration among those with mental health issues.
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