Staunton differed considerably from other mid-sized towns in one respect. It was home to two state institutions: The Western Lunatic Asylum and the Virginia Institution for the Deaf, Dumb, and Blind.

In 1825, the Virginia State Assembly decided to build a second state mental hospital. The Western Lunatic Asylum which opened in Staunton in 1828, was the first structure west of the Blue Ridge to be built with public funds. When it opened it was one of only five such institutions in the entire country. The building, designed by a Baltimore architect, is today regarded as a one of the finest examples of early nineteenth century institutional architecture. Of course, despite the elegant surroundings, conditions were horrible, not much better than those found in prisons. In 1836, Dr. Francis T. Stribling replaced the first "keeper," Samuel Woodward, first as a visiting physician and later as superintendent. Stribling made it his particular mission to improve conditions and care for his patients, and the Asylum enjoyed a distinguished reputation.

As early as 1825, local residents had made efforts to establish schools for both the deaf and the blind in Staunton. In 1838, Staunton beat out Richmond as the site of the newly established Virginia Institution for the Deaf and Dumb and Blind. James Bell donated a five acre tract a quarter of a mile east of town, and for $250 Baltimore architect Robert Cary Long built the Greek Revivial building. It was completed in 1846. Dr. Jean Charles Martin Merrillat, a native of France, served first as the head of the Department for the Blind, and later as Administrator for the entire school.
During the Civil War, the school's buildings were used as a Confederate hospital, and they in turn displaced the Virginia Female Institute.
Franklin County, while not having institutions like Augusta, did have a county Poor House, which was the subject of some public discussion, as the newspaper articles below indicate.