In the early 1950's the Phoenix project was merged with the remnants of Project Rainbow. The revised Phoenix Project was to delve further into the study of electromagnetic effects and their use in achieving 'stealth' technology. The problem the Phoenix Project faced was how to keep this new technology from having such an adverse affect on humans involved in the experiments.
The director of this new phase of the Project was Dr. John von Neumann, brought back to oversee operations. He concentrated on the metaphysical side of the experiments in an attempt to determine what had gone wrong. He and his team worked for about ten years on the problem, studying why humans had such a problem with intense electromagnetic fields, especially ones that were capable of producing the sort of effects seen in the Philadelphia Experiment. What they found was that human beings are born with a "time reference point". This time reference point is linked to the electromagnetic fields native to the Earth and help orient man to the nature of the universe and how it operates. It is a separate entity, distinct from the physical body. When the generators were started on the Eldridge, the link to this point was severed, causing the crew of the Eldridge massive physical and mental trauma.
It was determined that the devices used in the original Philadelphia Experiment had created an artificial reality around the Eldridge. Thus, the ship had been removed from the 'normal' plane of existence, rendering it invisible. The problem was that the new reality had no connection to our world, thus disorientating anyone within the field. In order to overcome this problem, a time reference point, linking any potential inhabitant of the electromagnetic bottles created by the Project Rainbow technology back to their point of origin, had to be developed.
This problem was solved by giving the bottle a phony background - a false 'Earth' to link to that would reduce any form of transdimensional disorder. A computer was used to recreate the time reference points of specific people and to generate a false electromagnetic background that would give the physical body something to lock on to. If this system failed, the physical and the mental body would separate, resulting in insanity.
This phase of the project was completed in 1967. A report was then sent to Congress stating that the human mind could be altered by the use of electromagnetics. With development, one could create devices that would change the way people think. Congress, fearing the results of such experimentation into mass mind control, refused any further funding for the project and in 1969 ordered the Phoenix Project to disband.