[2] Before this movement gained momentum, mentally ill individuals were often placed in some state run psychiatric hospitals for extended periods, where they received long-term custodial care.

[5] These centers were intended to offer a range of mental health services, including outpatient care, crisis intervention, and rehabilitation, with the goal of reducing the need for long-term institutionalization.

While many CMHCs had been established, they faced challenges in securing ongoing funding and providing comprehensive services to individuals with mental illnesses.

While some concerns existed about the methodology followed by the President's Committee, the report served as the foundation for the MHSA, which in turn was seen as landmark legislation in U.S. mental health policy.

[9] It tried to address deficiencies and shortcomings of the existing mental health system by boosting federal funding and support for community-based services.

The act emphasized the importance of comprehensive, integrated mental health care that addressed the needs of individuals across the lifespan and provided support for services such as crisis intervention, rehabilitation, and housing.

[14] The repeal occurred within the broader context of shifting political ideologies and priorities in the United States, following the election of President Ronald Reagan in 1980.

[15][16] The repeal of most provisions of the MHSA in 1981 reflected broader shifts in political priorities, budgetary constraints,[17] and changing attitudes toward federal involvement in mental health policy and funding.