This study traces the origins of the transition from an institution-based mental health structure to a community-based policy by examining the early career and contributions of Dr. Robert H. Felix, a major figure who helped pass the National Mental Health Act of 1946 and was the first director of the National Institute of Mental Health. Felix began his career in the U.S. Public Health (USPHS) in the 1930s and was stationed at various PHS-affiliated institutes in the early 1940s. Post-World War II (WWII), he leveraged his professional experiences with federal-level institutions, by laying the groundwork for overarching national mental health policy plans. Based on lessons learned from total war, his prospective plan mainly focused on the prevention of mental illness, whether chronic or acute. In this regard, this paper demonstrates how American mental health policies use centralized federal funds to help community-based prevention of early-stage illness.