Federal Government Involvement
The federal government passed legislation called the National Mental Health Act of 1946 that created National Institute of Mental Health (NIMH). In 1955, the Mental Health Study Act provided "an objective thorough and nationwide analysis and re-evaluation of the human and economic problems of mental illness". Over a five-year period, more than a million dollars was allotted to this study which was carried out by the Joint Commission on Mental Illness and Health. Essentially, the study concluded that community mental health services and programs needed to be improved and expanded. The findings of the study reached the receptive ears of the President. On February 5, 1963, President Kennedy transmitted a special message on mental health and mental retardation in which he proposed a national mental health program that would require new legislation. This special message was of great importance in American history because it was the first time that a President had delivered a message on and supported mental health and illness (Bloom, 1977).

A series of hearings, conferences and proposals were brought to the House and Senate designed to implement the President's ideas. It soon became obvious that substantial federal funding would be required in order to build new facilities and support staff salaries. The idea of federal funding of community mental health centers met with opposition primarily from the American Medical Association (AMA). The AMA had a long history of opposing any other form of payment such as prepaid group health plans. Their interest was to protect the economic viability of the medical profession. Even some members of Congress questioned the economic involvement of the federal government. Many felt it was a state or local matter and once involved it would be difficult to terminate the federal government's role. After provisions were made the House and Senate approved the law and on October 31, 1963, President Kennedy signed the Act into law, just nine months after his special message to the nation.