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1963 President John F. Kennedy signs the Community Mental Health Act. This pushes the responsibility of mentally ill patients from the state toward the federal government. JFK wanted to create a network of community mental health centers where mentally ill people could live in the community while receiving care. JFK could have been inspired to act because his younger sister, Rosemary, was mentally disabled, received a lobotomy and spent her life hidden away.

Less than a month after signing the new legislation, JFK is assassinated. The community mental health centers never receive stable funding, and even 15 years later less than half the promised centers are built.

1965 The U.S. Congress establishes Medicaid and Medicare. Mentally disabled people living in the community are eligible for benefits but those in psychiatric hospitals are excluded. By encouraging patients to be discharged, state legislators could shift the cost of care for mentally ill patients to the federal government.

1967 Ronald Reagan is elected governor of California. At this point, the number of patients in state hospitals had fallen to 22,000, and the Reagan administration uses the decline as a reason to make cuts to the Department of Mental Hygiene. They cut 2,600 jobs and 10 percent of the budget despite reports showing that hospitals were already below recommended staffing levels.

1967 Reagan signs the Lanterman-Petris-Short Act and ends the practice of institutionalizing patients against their will, or for indefinite amounts of time. This law is regarded by some as a “patient’s bill of rights”. Sadly, the care outside state hospitals was inadequate. The year after the law goes into effect, a study shows the number of mentally ill people entering San Mateo's criminal justice system doubles.

1969 Reagan reverses earlier budget cuts. He increases spending on the Department of Mental Hygiene by a record $28 million.

1973 The number of patients in California State mental hospitals falls to 7,000.

1980 President Jimmy Carter signs the Mental Health Systems Act to improve on Kennedy’s dream.

1981 President Reagan repeals Carter’s legislation with the Omnibus Budget Reconciliation Act. This pushes the responsibility of mentally ill patients back to the states. The legislation creates block grants for the states, but federal spending on mental illness declines.

2004 The U.S. Department of Justice estimates that 10 percent of state prisoners have symptoms that meet criteria for a psychotic disorder.

2015 In the San Francisco Homeless Count, 55 percent of people experiencing chronic homelessness report they have emotional or psychiatric conditions.

You can't put that all at Nixon's door, no matter how you try. It started with a Dem administration, and was followed up by bleeding heart liberals who, rather than fix a broken system, just burned it down.

https://www.kqed.org/news/11209729/did-the-emptying-of-mental-hospitals-contribute-to-homelessness-here [kqed.org]