The Budget Reform Act of 1974

The Budget Reform Act of 1974 was a law designed to improve how the U.S. government manages its budget process. It shifted much of the responsibility for creating the federal budget from Congress to the Congressional Budget Office (CBO), making budgeting more transparent and helping ensure federal agencies stay within their spending limits. The Act also established procedures for Congress to review and modify the budget through hearings and resolutions, aiming to promote fiscal discipline and prevent unchecked government overspending. Overall, it was a move to make federal budgeting more organized, accountable, and responsive to economic realities.