It is generally recognized that mental health policy is shaped by the
interaction of complex social, economic, intellectual, and medical var
iables. An often neglected, yet significant, factor, however, is the v
ery structure of the American political system that was created by the
adoption of the federal Constitution in 1789. The constitutional fram
ework made intergovernmental relations-local, state, federal-important
determinants in shaping and transforming social policy in general and
mental health policy in particular. The division of power among three
levels of government created incentives to shift responsibilities, wh
ich in turn changed and distorted coverage patterns. thereby inadverte
ntly transforming both costs and policy goals. It is thus critical to
take into account the ways in which America's political structure medi
ates and recasts the context of mental health policy.