The Budget Act of 1921

The Budget Act of 1921 was a law that reorganized how the U.S. government prepares its annual budget. It established the Bureau of the Budget within the Treasury Department to help the President create a comprehensive federal budget, improve oversight, and promote efficiency. This law aimed to centralize and standardize budget planning, giving the executive branch more control over government spending and reducing Congress’s direct involvement in detailed budget preparation. Overall, it laid the foundation for modern federal budget processes, making government finance more organized, transparent, and accountable.