That's the root of the problem: the borders of movement are at the federal level* (well the 48 states), but the 'solutions' for non-integrated citizens are left to the states, counties, and local municipalities.

Informally, I recall learning that the 'solution' for inhuman insane asylums was to just release everyone and close them down. That's quite probably where a good portion of the 'homeless' problem comes from; there are of course also untreated veterans and just pure scam-artist pan-handlers.

The actual solution is also a difficult and politically impalpable issue:

    * national healthcare including drug addition treatment and mental health
    * an unending 'new deal'
    * + everyone trained to aptitude
    * + non-broken-window fallacy job assurance
    * adequate housing of actual quality near jobs

Also taxes / incentives (carrot+stick) at a federal level to pay for / encourage the correct behavior from all actors.