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Institutionalization and ‘special housing'
At the time of the passage of the ADA, states still had laws on the books requiring people with mental disabilities to be institutionalized. Not even slaves had been so restricted.
"Spurred by the eugenics movement," write legal historians Morton Horwitz, Martha Field and Martha Minow, "every state in the country passed laws that singled out people with mental or physical disabilities for institutionalization." The laws
made it clear that the state's purpose was not to benefit disabled people but to segregate them from "normal" society. Thus, statutes noted that the disabled were segregated and institutionalized for being a "menace to society" [and] so that "society [might be] relieved from the heavy economic and moral losses arising from the existence at large of these unfortunate persons."
"The state of Washington made it a crime for a parent to refuse state-ordered institutionalization," they wrote; "once children were institutionalized, many state laws required parents to waive all custody rights."
Justice Thurgood Marshall wrote in the 1985 Cleburne Supreme Court decision (the decision saying that people with mental retardation did not constitute a "discrete and insular" minority) that this "regime of state-mandated segregation and degradation [had] in its virulence and bigotry rivaled, and indeed paralleled, the worst excesses of Jim Crow. Massive custodial institutions were built to warehouse the retarded for life." Yet they continue today. In 1999, the Supreme Court in its Olmstead decision acknowledged that the ADA did in fact require states to provide services to people with disabilities in the "most integrated setting"; but institutionalization continued, because federal funds -- Medicaid, mostly -- had a built-in "institutional bias," the result of savvy lobbying over the years by owners of institutions like nursing homes: In no state could one be denied a "bed" in a nursing home, but in only a few states could one use those same Medicaid dollars to get services in one's home that were usually much less expensive.
Ongoing battles were waged to close down the institutions, to allow the people in them to live on their own or in small group settings. But parents often fought to keep them open. When they did close, other special facilities cropped up.
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Mary Johnson (Make Them Go Away: Clint Eastwood, Christopher Reeve & The Case Against Disability Rights)