Yes, the issue was about unfairly institutionalizing the mentally ill and it took place during the Carter administration. Jimmy Carter signed a Mental Health act into law in 1980 which would have continued federal funding.   Ronald Reagan, in his preoccupation with reducing federal spending, rescinded the law which put the burden back on individual states - without the resources to make it work. So yes, Reagan was blamed for the homless issue and the inadequate mental health care that continues to exist in this country.