The Budget and Accounting Act of 1921 was a landmark piece of legislation that centralized and standardized the federal budgeting process in the United States. It established the Bureau of the Budget, the predecessor to the modern Office of Management and Budget, and required the president to submit an annual budget proposal to Congress.
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The Budget and Accounting Act was passed in 1921 during the Republican Ascendancy period of the 1920s, when the Republican Party held the presidency and both houses of Congress.
The act was a response to concerns about the lack of centralized control and coordination over federal spending, which had led to inefficiency and waste in the years following World War I.
The act gave the president, through the Bureau of the Budget, greater authority to shape the federal budget and rein in agency spending requests.
The act also required federal agencies to submit their budget requests to the Bureau of the Budget for review and approval, rather than directly to Congress.
The establishment of the presidential budget proposal process helped to increase the power of the executive branch relative to Congress in budgetary matters.
Review Questions
Explain how the Budget and Accounting Act of 1921 centralized the federal budgeting process and increased the president's authority.
The Budget and Accounting Act of 1921 centralized the federal budgeting process by establishing the Bureau of the Budget, which was responsible for overseeing and coordinating the budget on behalf of the president. The act required federal agencies to submit their budget requests to the Bureau of the Budget for review and approval, rather than directly to Congress. This gave the president, through the Bureau of the Budget, greater authority to shape the federal budget and rein in agency spending requests, increasing the power of the executive branch relative to Congress in budgetary matters.
Describe the historical context in which the Budget and Accounting Act was passed and how it related to the Republican Ascendancy of the 1920s.
The Budget and Accounting Act was passed in 1921 during the Republican Ascendancy period of the 1920s, when the Republican Party held the presidency and both houses of Congress. The act was a response to concerns about the lack of centralized control and coordination over federal spending, which had led to inefficiency and waste in the years following World War I. The Republican-controlled government saw the act as a way to bring greater efficiency and fiscal discipline to the federal government, aligning with the party's broader agenda of limited government and fiscal conservatism during this period.
Analyze the long-term impact of the Budget and Accounting Act on the relationship between the executive and legislative branches in the federal budgeting process.
The Budget and Accounting Act had a significant and lasting impact on the balance of power between the executive and legislative branches in the federal budgeting process. By giving the president, through the Bureau of the Budget (later the Office of Management and Budget), greater authority to shape the federal budget and rein in agency spending requests, the act increased the power of the executive branch relative to Congress. This shift in power has persisted over time, with the president's budget proposal becoming the central document around which congressional budget deliberations revolve. While Congress retains the power of the purse and can make changes to the president's budget proposal, the act has helped to cement the president's role as the primary architect of the federal budget.
The agency established by the Budget and Accounting Act to oversee and coordinate the federal budgeting process on behalf of the president.
Office of Management and Budget (OMB): The modern successor to the Bureau of the Budget, responsible for preparing the president's annual budget proposal and overseeing federal agency spending.
Presidential Budget Proposal: The annual budget plan submitted by the president to Congress, outlining the administration's spending priorities and revenue projections.