Economy Act

Economy Act (20 March 1933) This law was designed to fulfill Franklin D. Roosevelt’s campaign pledge to eliminate wasteful federal expenditures. It was projected to cut $500,000,000 from the budget by salary reductions (including 15 percent from congressmen, senators, the vice-president, and president), eliminating various veterans’ allowances, and reorganizing the bureaucracy, but the actual amount saved was only $243,000,000. The savings were eliminated in 1934 by the Independent Offices Appropriations Act.