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The intersection of severe mental illness and incarceration is a growing concern in the U.S. criminal justice system. This paper examines the prevalence, treatment conditions, and post-release outcomes of individuals diagnosed with schizophrenia within American prison systems. Using a mixed-methods approach, the study draws from recent correctional statistics, psychological evaluations, and qualitative interviews with formerly incarcerated individuals living with schizophrenia. The research identifies systemic challenges, including limited access to mental health care, frequent use of solitary confinement, and pervasive stigma among correctional staff and inmates. Furthermore, it assesses the effectiveness of prison-based mental health interventions and reentry programs aimed at reducing recidivism in this vulnerable population. Preliminary findings suggest that integrated treatment models and community-based support play a significant role in improving mental health outcomes and successful reintegration. This study contributes to ongoing policy discussions on prison reform, mental health care accessibility, and the broader movement toward the decriminalization of mental illness in the United States. Implications for clinical practice, correctional management, and legislative action are discussed, with specific recommendations for improving standards of care and reducing the incarceration of individuals with severe mental disorders.