Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press
CHRONOLOGY OF FEDERAL BUDGETING, 1789–2012
From the Constitution through the 18th Century
1789 US Constitution, Art. 1, Sec. 7, revenue bills originate in House (and appropriations, by
custom); Art. 1, Sec. 9, appropriation needed for expenditure and public receipts and
expenditures
1789 An Act to Establish the Treasury Department (I Stat. 12). Established elements underlying
federal financial system including disbursements, accounting, and reporting and offices of
Secretary of the Treasury, Comptroller, and Auditor
1791 First internal tax—on distilled spirits—passed by Congress
1802 Ways and Means Committee established as standing committee
1816 Senate Committee on Finance established
1819 In McCulloch v. Maryland, the US Supreme Court established federal government’s
immunity from state taxation
1835 Federal debt stood at zero under President Andrew Jackson but soon grows quickly
1837 House Rule XXI. Unauthorized appropriations and appropriations in legislation barred
1850 Senate Rule XV. Unauthorized appropriations barred by the first Senate rule requiring that
appropriations carry out existing law
1865 House Appropriations Committee established
1867 House Appropriations Committee created
1871 First Civil Service Commission (1872–1873) created through rider to appropriations bill
1894 Dockery Act. Established fiscal accounting practices
1900-1949
1906 Anti-deficiency Act (31 U.S.C. 1511 et seq.) initiated apportionment of funds (amended in
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1950 to allow budgetary reserves and in 1974 to restrict budgetary reserves) and Act prohibits
federal agencies from obligating or expending federal funds in advance or in excess of an
appropriation or apportionment
1912 Report of the (Taft) Commission on Economy and Efficiency. Expressed need for national
budget and executive budget
1913 US Constitution, Amendment Act. XVI. Congress fully empowered to tax income
1913 Federal Reserve Act. Established institutions and system for national monetary policy; for
first time Congress delegated considerable power over the federal budget and national
economy
1917 Liberty Bond Acts. Authorized Treasury to pay debts and borrow on US credit to specified
amount (“debt ceiling”)
1921 Budget and Accounting Act (31 U.S.C. 1101 et seq.). Established executive budget system,
Bureau of the Budget, and General Accounting Office
1933 Congress created independent public corporation, Tennessee Valley Authority (TVA)
1935 Social Security program established
1937 Report of the President’s Committee on Administrative Management (Brownlow
Committee). Expressed President’s managerial role in executive branch and need for powers
and staff 1939 Reorganization Plan No. I (Executive Order 8284). Transferred Bureau of the
Budget with expanded role to new Executive Office of the President
1938 Creation of Fannie Mae as mortgage intermediary
1945 Government Corporation Control Act. First attempt to regularize and control government
corporations’ financial activities
Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press
1946 Employment Act of 1946. Established Council of Economic Advisors and Economic
Report of the President 1946 Administrative Procedure Act. Standardized administrative
practices among agencies
1946 Legislative Reorganization Act. Established legislative budget (discarded in 1949)
1949 Concluding Report of the Commissions on Organization of the Executive branch of the
Government (first Hoover Commission). Emphasized presidential role in executive
management and “management movement” made recommendations for reorganization of the
executive branch, and called for performance budgeting
The 1950s
1950 Budget and Accounting Procedures Act. Aimed at control and accountability in executive
agencies’ funds, established requirements for budgeting, accounting, financial reporting, and
auditing, and mandated performance budgeting
1950 Omnibus Appropriations Act. All regular spending in a single appropriation bill for first
time (but return to separate bills in 1951)
1953–1955 Second Hoover Commission. Recommended limiting government activities that
compete with private sector and other recommendations on budgetary and financial practices
The 1960s
1961 Planning–programming–budgeting system (PPBS) adopted in Department of Defense
1962 Executive Order 10988. Unionization of federal employees encouraged
1965 Bureau of the Budget’s bulletin no. 66-3. Provided for PPBS in executive departments and
agencies (until abandoned in 1971)
1965 Amendment to Social Security Act created Medicare
1966 BOB circular A-76. Implemented government policy to use private suppliers competitive
3
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on a cost comparison basis; expanded in 1979
1967 President’s Commission on Budget Concepts. Unified budget adopted
1968 Annual Report of the U.S. Treasury contained the first estimates of tax expenditures
The 1970s
1970 Legislative Reorganization Act. Expanded role of General Accounting Office (program
evaluation) and provided for five-year budget projections
1970 Reorganization Plan No. 2. Reconstituted Bureau of the Budget as Office of Management
and Budget (OMB) and reemphasized management role
1970 Creation of Freddie Mac
1971 Requirements for PPBS formally voided
1972 Nixon administration made use of unprecedented, massive rescissions and impoundments
in domestic programs
1972 State and Local Fiscal Assistance Act (P. L. 92-512). Established general revenue sharing
and inaugurated “new federalism.” Terminated in 1986
1972 General Accounting Office issued comprehensive statement of standards for governmental
audits
1972 Joint Committee on Taxation, the staff arm of the House Ways and Means Committee,
produced the first report providing a comprehensive set of tax expenditure estimates
1972 Joint Study Committee on Budget Control established. With significant modifications,
1973 report to emerge as 1974 budget act
1973 Comprehensive Employment and Training Act (CETA). Created financial assistance to
state and local governments for training and employment
1974 Congressional Budget and Impoundment Control Act. (P. L. 93-344). Established
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congressional budget process and timetable. House and Senate Budget Committees,
Congressional Budget Office, and procedures for reviewing recessions and deferrals
1974 Automatic cost-of-living adjustments (COLA) added by amendment to Social Security Act
1977 Office of Management and Budget’s bulletin no. 77-9. Zero-base budgeting introduced into
executive departments and agencies (and officially terminated in 1981)
1978 Full Employment and Balanced Growth Act (Humphrey-Hawkins Act). Congress
authorized president to propose and initiate action with respect to production, prices, and
employment
1978 Inspector General Act. Created independent units in major domestic agencies to conduct
audits and investigations to reduce fraud, waste, and abuse
The 1980s
1980 Reconciliation process. First use as part of first budget resolution after change allowing use
at beginning of congressional budget process
1981 Reagan administration abandoned zero-base budgeting through OMB circular A-11
1981 Omnibus Reconciliation Act. Use of reconciliation in first resolution
1981 Economic Recovery Tax Act. ERTA introduced major tax cuts, including reducing highest
individual tax bracket
1981 Executive Order 12291 required new, major regulations with annual economic impact of
$100 million or more be subjected to cost-benefit analysis
1982 Balanced budget amendment approved in Senate but not in House
1982 In Immigration and Naturalization Service v. Chadha, US Supreme Court undermined
legislative veto
1982 Federal Managers’ Financial Integrity Act (31 U.S.C. 3512) is intended to reduce fraud,
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waste, and abuse in agency operations by requiring assessment and reporting annually on
internal controls and accounting systems
1982 Tax Equity and Fiscal Responsibility Act (TEFRA). TEFRA instituted significant changes
in medical and casualty deductions and pensions and retirement plans
1982 OMB stipulated guidelines for evaluating internal controls in accordance with OMB
circular A-123
1982 Alternative Minimum Tax (AMT) enacted to prevent wealthy taxpayers from escaping
income taxation because of their heavy use of tax breaks; revised in 1986 tax reform act
1983 Comptroller General issued standards for internal controls in federal agencies
1984 Report of the President’s Private Sector Survey on Cost Control (Grace Commission).
Emphasizing efficiency and savings, issued 47 reports including almost 2500 recommendations
and concluded that federal reporting and accounting systems are inadequate
1984 Single Audit Act. Streamlined intergovernmental financial system by establishing uniform
requirements for comprehensive, single audit of federal grant recipients
1984 Federal Capital Investment Program Act. As of 1985, the president’s annual budget
submission is required to highlight capital investment expenditures within the unified budget
1985 Balanced Budget and Emergency Deficit Control Act (GRH, P.L. 99-177, the GrammRudman-Hollings Act). Provided for annual reductions in the budget deficit from fiscal 1986 to
zero in fiscal 1991 (balanced budget) through mandatory sequestration (canceled budget
resources) if projected deficit exceeded target; legislative vehicle was debt limit extension
1985 Executive Order 12498 established OMB’s clearance of regulations, including agencies’
regulatory policy and proposals
1985 General revenue sharing for local governments not reauthorized in reconciliation bill for
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fiscal 1986
1986 In Bowsher v. Synar (106 S.Ct. 3181), Supreme Court invalidated GRH’s automatic trigger
mechanism for sequestration as violation of separation of powers
1986 Tax Reform Act (P.L. 99-514). Introduced the Internal Revenue Code of 1986 with major
overhaul of tax system including reduced individual tax rates and number of brackets,
elimination of many tax deductions and preferences, reinstatement of standard deduction
(1944–1977), and revision of alternative minimum tax
1986 Amendment to Defense Authorization Act for fiscal 1987 (P.L. 99-145, Sec. 1405).
Congress mandated that president submit first biennial defense budget for fiscal 1988 and 1989
1986 Balanced budget amendment fails by one vote in Senate
1987 Following stock market’s plunge in October, successful executive–legislative negotiations
led to two-year budget agreement
1987 Balanced Budget and Emergency Deficit Control Reaffirmation Act (P.L. 100-119).
Amended 1985 GRH to reset deficit reduction targets and postpone balanced budget to 1993;
automatic sequestration trigger restored and responsibility assigned to OMB; legislative
vehicle was debt limit extension
1988 Accepting Republican nomination, George Bush promised no tax increases in his “read my
lips” pledge
1988 South Carolina v. Baker. Upholding sec. 310(b)(I) of 1982 TEFRA, Supreme Court found
that there is no constitutional entitlement to not pay taxes on income earned from state and
local bonds
1989 In effort to reduce pork-barrel politics, independent commission was established by law to
recommend closing or downsizing obsolete military bases
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1989–1990 Deficit exceeded GRH deficit targets each fiscal year
The 1990s
1990 President Bush’s submitted budget included proposal for constitutional amendment on
balanced budget, item veto authority, biennial budgeting, and more
1990 For second time in history, House considered a balanced budget amendment to the
Constitution and it fell seven votes short of requisite two-thirds majority; Senate Judiciary
Committee reported balanced budget amendment
1990 Federal employees temporarily furloughed during budget impasse
1990 Federal Credit Reform Act changed budgetary treatment of loans and loan guarantees
through government-owned and government-sponsored corporations to subsidize cost of loans
for which funds must be budgeted and appropriated
1990 Chief Financial Officers (CFO) Act assigned responsibility for federal financial
management to OMB’s deputy director for management and the Office of Federal Financial
Management; provided for appointing CFOs in 23 major departments and CFO council; effort
to establish integrated financial management systems linking budgeting and accounting and
monitoring budgetary execution; requires agencies prepare auditable financial statements
1990 OMB, Treasury, and GAO establish Federal Accounting Standards Advisory Board
(FASAB) to develop uniform accounting standards
1990 Omnibus Budgeting Reconciliation Act (P.L. 101-508) for fiscal 1991 raised income tax
rates for high-income earners, incorporated five-year spending reduction aimed at saving
approximately $500 billion, and effectively repealed GRH; subsequent appropriations passed,
many without final legislative text in hand
1990 Budget Enforcement Act of 1990 (BEA; Title XIII of 1990 OBRA) made major changes in
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GRH and 1974 Congressional Budget Act; shifted focus from fixed deficit limits to spending
control; created new deficit controls based on variable deficit targets extended through fiscal
1995; established caps on discretionary spending and the “pay-as-you-go” rule (deficit neutral)
for revenues and direct spending; and revised sequestration procedures (mini-sequesters)
1992 Multiple versions of balanced budget amendments proposed but fail to pass Congress
1993 President Clinton’s deficit reduction package increased the marginal tax rate for highincome earners
1993 OMB revised its 1984 circular A-127, “Financial Management Systems,” and required that
each agency create a single, integrated system of financial management
1993 National Performance Review (NPR) included budgetary and financial management
recommendations, including increased managerial discretion (e.g., lapses, staffing ceilings,
restrictive itemization) and biennial budget cycle
1993 Executive Order 12839 instructed agencies to cut employment by 5% or about 100,000
employees from 1993 to 1995
1993 Government Performance and Results Act of 1993 (GPRA; P.L. 103-62). On an eight-year
implementation schedule, required federal agencies to set annual performance targets; OMB to
submit government-wide performance plan budget beginning for fiscal 1999
1993 The discretionary spending limits and the PAYGO rules for mandatory spending in the
1990 Budget Enforcement Act are extended through fiscal year 1998.
1993–1994 President Clinton adjusted maximum deficit amount under BEA when budget was
submitted
1994 In his budget message for fiscal 1995, President Clinton claimed cuts in approximately 340
discretionary programs in 1994 and proposed cuts in approximately 300 non-defense programs,
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including termination of more than 100 programs
1994 Federal Acquisition Streamlining Act updated and simplified procurement procedures
1994 Contract with America signed by 376 Republican candidates, including many
congressional candidates; with accent on accountability and reduced governmental role,
proposals encompassed independent, comprehensive audit of Congress; supermajority for
passing tax increases; zero-baseline budgeting; balanced budget and tax limit amendment; lineitem veto; regulatory reform including use of risk assessment and cost-benefit analysis; and
unfunded mandate reform
1994 OMB’s circular A-34, “Instructions on Budget Execution,” revised to account for changes
in laws and practices since last major revision in 1985
1994 OMB’s circular A-11, “Preparation and Submission of Budget Estimates,” revised to
account for Government Performance and Results Act of 1993
1995 Line-item veto and balanced budget amendment again defeated
1995 Unfunded Mandates Reform Act (P.L. 104-4). With emphasis on disclosure and
accountability, required that CBO provide cost estimates to authorizing committee for
government mandates over $50 million threshold ($100 million for private sector mandates),
excluding categories such as constitutionally guaranteed civil rights; created point of order
against considering a bill without CBO’s cost estimate and against unfunded mandate with
aggregate cost in excess of threshold; in effect, Congress must go on record as endorsing the
mandate
1995 Under federal legislation, a financial oversight entity (control board) is established for
Washington, D.C.
1995 OMB issued final revisions to circular A-87, “Cost Principles for States, Local and Tribal
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Governments,” thereby setting costing standards for grants, reimbursements, and contracts
1995 Bills introduced to require use of risk assessment and cost-benefit analysis in federal
agencies enlivened but left unsettled methodological issues in budgeting and policy making
1995 Moratorium on regulatory rule making passed House and Senate
1995 Congress moved to terminate as entitlements and devolve program responsibility to states
Aid to Families with Dependent Children, food stamps, and Medicaid by approving dollar caps
on block grants to states
1995 Debt ceiling held hostage (at $4.9 trillion) in budget standoff between president and
Congress; federal agencies closed and 800,000 “nonessential” employees temporarily
furloughed in November
1995 More than one-half of states’ budgets use effectiveness and/or productivity measures for
new or revised programs, revise productivity measures when funding levels change, discuss
productivity in budget narrative, and include effectiveness and/or productivity measures in
budget document of some or most agencies
1996 On July 18, House of Representatives passes (by vote of 256 to 170) its budget
reconciliation package, H.R. 3734, containing a modified version of the Personal
Responsibility and Work Opportunity Act of 1996, H.R. 3507. The Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (PRWORA) (Pub. L. 104-193), as
amended, is the welfare reform law that established the Temporary Assistance for Needy
Families (TANF) program. TANF is a block grant program designed to make dramatic reforms
to the welfare system by moving recipients into work and turning welfare into a program of
temporary assistance. TANF replaced the national welfare program known as Aid to Families
with Dependent Children (AFDC) and the related programs known as the Job Opportunities
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and Basic Skills Training (JOBS) program and the Emergency Assistance (EA) program
1996 Line Item Veto Act of 1996 (P.L. 104-130) authorized the president to cancel discretionary
budget authority, new entitlements, and limited tax benefits
1996 Congress fails to override President Clinton’s veto of the defense authorization, thereby
making the entire defense appropriation unauthorized
1997 Budget Enforcement Act (1997 BEA) again extended the discretionary spending caps and
the PAYGO rules for mandatory spending through 2002 and required OMB to issue an end-ofsession report after Congress adjourns sine die to determine whether or not a sequester is
required
1997 Government Performance and Results Act requires federal agencies to prepare strategic
plans starting with fiscal year 1997
1998 Political battle over highway bill, Transportation Equity Act for the 21st Century (P.L. 105178)
1998 In Clinton v. City of New York, 524 U.S. 417 (1998), the US Supreme Court declared the
Line Item Veto Act of 1996 in violation of Article I, Section 7, Clause 2 of the Constitution
1998 The first surplus since 1969 is reported for the federal budget
1999 Government Performance and Results Act of 1993 requires federal agencies to prepare
annual performance plans starting with fiscal year 1999
The Twenty-First Century
2000 Government Performance and Results Act requires federal agencies to submit to the
President and Congress an annual program performance report comparing actual performance
with their plans beginning in fiscal year 2000
2001 Economy entered official recession in March
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2001 On September 11, four hijacked airplanes are used in an attack of international terrorism at
World Trade Center, the Pentagon and Shanksville, Pennsylvania; immediate budgetary
ramifications include federal aid to New York City, rebuilding the Pentagon, $40 billion aid to
airlines and insurance bailouts, and economic loss to New York City and the travel, tourist and
other industries
2001 Three days after the attack, Congress, at request of President Bush, votes $40 billion in
emergency funds 2001 U.S. forces go into Afghanistan on October 7
2001 When Enron collapsed and is declared bankrupt in December, it had about $5 billion in
outstanding “prepays” that were virtually unknown to the company’s creditors, investors and
business associates; report of Senate Governmental Affairs Committee’s Permanent
Subcommittee on Investigations found that the board had failed in its fiduciary duty to protect
Enron shareholders and that it shares responsibility for Enron’s deceptions and its bankruptcy
2001 Economic Growth and Tax Relief Reconciliation Act (EGTRRA, P.L. 107-16) reduces
marginal income tax rates, creates a 10 percent bracket, increases child credit, partially relieves
the marriage penalty, increases the standard deduction, expands education and pension
contribution options, and phases out the estate tax (so-called “death” tax); changes set to expire
(sunset) in 2010
2002 Texas jury finds the audit firm of Arthur Andersen guilty of obstruction of justice for
destroying documents during Securities and Exchange Commission’s investigation of Enron
2002 Sarbanes-Oxley Act is signed into law in July in response to numerous accounting scandals
that led to bankruptcy filings of Enron, WorldCom and Global Crossing; corporate
responsibility legislation provides tougher penalties for fraud and holds executives personally
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responsible for their corporate financial statements
2002 1997 BEA’s discretionary spending cap and PAYGO requirement for mandatory spending
expire, and Congress continues to use the concurrent resolution on the budget to establish and
enforce congressional budgetary limits
2002 In March, the White House promotes proposed pension changes and partial privatization of
Social Security as part of an overhaul of retirement financing
2002 Senate voted to authorize the use of U.S. armed forces in Iraq on October 11
2002 On November 25, President Bush signed the Homeland Security Act of 2002 that
restructures the executive branch to meet the threat posed by terrorism by creating the cabinetlevel Department of Homeland Security
2002 Budget Enforcement Act (BEA) expired on September 30 and the pay-as-you-go (PAYGO)
requirement expired at the end of the year
2002 The budget deficit in FY 2002 is the first since budgetary balance in1998
2003 Aimed at economic stimulation, Jobs and Growth Tax Relief Reconciliation Act (JGTRRA,
P.L.108-27) accelerates implementation of certain tax reductions originally enacted as part of
EGTRRA enacted in 2001
2003 U.S. forces invaded Iraq on March 20
2003 Medicare reform bill, Medicare Modernization Act (MMA), includes a new prescription
drug benefit and requires the Medicare trustees to issue a warning when general revenue
Medicare funding is projected to exceed 45 percent of Medicare’s total expenditures.
2004 OMB revised Circular A-11
2004 The GAO Human Capital Reform Act of 2004, Pub. L.
108-271, 118 Stat. 811 (2004), changed the GAO’s legal name to the Government Accountability Office,
decoupled GAO employees from the federal employee pay system and
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established a performance-based compensation system
2004 Bush Administration establishes the “Lines of Business” initiative to streamline agency
operations
2005 President’s Advisory Panel on Tax Reform issues report but there is little interest in
Congress and the White House to advance its recommendations
2004 Working Families Tax Relief Act (WFTRA) increases the child tax credit, ends “marriage
penalty” by increasing the standard deduction for married filing jointly, and increases a
alternative minimum tax (AMT) exemption
2005 Deficit Reduction Act reauthorizes the Temporary Assistance for Needy Families (TANF)
program administered by HHS’ Administration for Children and Families (ACF)
2005 OMB issues a memorandum to executive branch agencies that imposes a “budgetneutrality” requirement on discretionary administrative actions (such as regulations and
guidance to states or contractors) affecting mandatory spending and, in effect, establishes a
PAYGO requirement for administrative actions on entitlement programs
2005 Bankruptcy Prevention and Consumer Protection Act, Public Law No. 109-8 passed.
2005 Hurricanes Katrina, Rita, and Wilma cause unprecedented damage in New Orleans and the
Louisiana and Mississippi Gulf Coast
2006 Deficit Reduction Act appropriated $2 billion for certain health care costs related to
Hurricane Katrina through Medicaid and the State Children's Health Insurance Program
(SCHIP)
2006 Democrats win both houses of Congress, in which committees change leadership
2006 Expiration of rules governing the preparation of CBO’s baseline budget as originally
required by the Balanced Budget and Emergency Deficit Control Act of 1985
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2006 Budget Resolution conference report formally incorporates PAYGO rule
2006 August, defaults on subprime mortgages start much earlier in the mortgage process and
residential housing market cooling
2007 Using his second veto since taking office, President Bush vetoes war supplemental funding
bill over Democrats’ timetable for withdrawal from Iraq
2007 U.S. Comptroller General issues the 2007 revision of Government Auditing Standards
2007 Medicare funding warning was triggered in the Medicare Trustees’ Report
2007 Honest Leadership and Open Government Act of imposes new limits on gifts and travel
and new disclosure requirements on lobbyists
2007 College Cost Reduction and Access Act increases Pell Grants, allows loan forgiveness for
many public service careers, and provides other benefits
2007 Mortgage turmoil surfaces in summer as problems with subprime mortgages spread to
conventional home loans and severe credit tightening seen
2007 Global freeze in credit markets acknowledged in fall and forecasts of economic growth
reduced
2007 To inject liquidity into credit markets, Federal Reserve on December 12 creates a Term
Auction Facility (TAF) to allow sound financial institutions to get Fed funds by pledging
collateral
2007 U.S. enters recession in December
2008 On February 7, Congress passes economic stimulus with tax rebates averaging $600-$1200
for most taxpayers
2008 In July, the Housing and Economic Recovery Act establishes new regulatory agency,
Federal Housing Finance Agency (FHFA), with more regulatory authority over Fannie Mae
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and Freddie Mac and creates the HOPE for Homeowners Program to help borrowers facing
foreclosure refinance their homes through the Federal Housing Administration (FHA)
2008 The federal government takes control of Fannie Mae and Freddie Mac on September 7 and
takes a financial stake in the mortgage giants
2008 On September 15, Lehman Brothers becomes the largest firm to declare bankruptcy in U.S.
history
2008 On September 15, government announces $85 billion emergency loan to AIG (American
International Group) in exchange for a nearly 80% equity stake in the company
2008 In September, the Federal Reserve and several other central banks undertake emergency
lending to credit markets and financial institutions
2008 On September 22, Bush Administration sends unprecedented $700 billion financial bailout
legislation to Congress rescue program to buy “toxic” assets from financial institutions, but
disagreement over executive compensation, government's stake in companies taking bailout
money, and court intervention in homeowners' mortgages to avoid foreclosure delays passage
2008 Senate passes on October 1 and House passes on October 3 $700 billion government
bailout of the financial industry and president signs Emergency Economic Stabilization Act
that includes $700 billion Troubled Asset Relief Program (TARP) and increase in the FDIC
insurance on bank deposits
2008 European leaders intervene in their financial and banking crisis in October as fears of
global financial crisis and recession spread
2008 Second stage of global financial crisis seen in October as lenders anticipate credit card
losses from rising unemployment and financial pressures
2008 In October-November, stock market plunges and sets record daily losses and gains in
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volatile sessions
2008 November 5, exit polls in presidential election show about 60 percent of voters list
economy as top issue
2008 In mid-November, U.S. automakers testify to Congress about their need for government aid
2008 On December 16, Federal Reserve cuts a key interest rate to the lowest level on record
2008 On December 19, President Bush announces $17.4 billion in loans to General Motors and
Chrysler to protect the 1.1 million workers in US auto industry and requiring strong
restructuring plans
2009 American Recovery and Reinvestment Act (Public Law No. 111-5) enacted to create new
jobs and save existing ones and spur economic activity and invest in long-term growth while
fostering accountability and transparency with new spending of $821 billion
2009 Omnibus Appropriations Act (Public Law 111-8) enacted in March provides budget
authority for FY2009 that started in October 2008
2009 President Obama appointed the first United States Chief Performance Officer as part of the
Office of the White House
2010 Statutory Pay-As-You-Go Act (Public Law No. 111-39) enacted to confirm a statutory
procedure to enforce a rule of budget neutrality on new revenue and direct spending
legislation; requires an annual PAYGO report from OMB, clarifies the scoring of estimates and
the use of emergency and sequestration estimates, and requires the Comptroller General to
identify duplicative programs, agencies and initiatives for consolidation and elimination
2010 Enactment of the Patient Protection and Affordable Care Act (Public Law No. 111-148),
sometimes also known as “ObamaCare,” containing extensive health care reforms including the
mandate on private health insurance to cover pre-existing conditions that is offset, in part, by
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the mandate on individuals to have minimum insurance coverage or to pay a penalty instead.
2010 Enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public
Law No. 111-203) containing significant changes in the oversight and supervision of financial
institutions and the creation of a consumer finance agency
2010 President Obama issues in February an Executive Order appointing members to the
National Commission on Fiscal Responsibility and Reform (known as Bowles-Simpson after
its bipartisan co-chairs) to address the fiscal sustainability of U.S. finances
2010 The Bowles-Simpson Commission (formally known as the National Commission on Fiscal
Responsibility and Reform) in December issued its report calling for a combination of tax
increases, reduction in discretionary spending, and changes in entitlement programs including
Medicare and Social Security in order to achieve fiscal sustainability; two days later the
bipartisan commission failed to obtain the supermajority vote required for formal adoption
2011 Enactment of the Government Performance and Results Act Modernization Act of 2010
(Public Law No. 111-352), known as the GPRA Modernization Act, revises the 20-year old
GPRA Act by strengthening and codifying strategic, performance, reporting, and transparency
requirements, and the establishment of agency-level chief operating officers, program
improvement officers, and a government-wide performance improvement council
2011 Standard & Poor’s, an independent credit rating firm, issues a credit warning on U.S. debt;
warning issued not on the inability of the U.S. government to afford its debt but, instead, on the
unwillingness of national leaders to resolve the unsustainable fiscal path
2011 Enactment of the Budget Control Act of 2011 (Public Law No. 112-25) that tied a stepped
increase in the statutory debt limit (estimated as sufficient until after the 2012 general election)
to a variety of measures intended to reduce the deficit including a cap on discretionary
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spending and the establishment of a bipartisan Joint Select Committee on Deficit Reduction to
identify future budgetary savings of at least $1.2 trillion over 10 years; failure by its January
2012 deadline would trigger new automatic spending reductions in January 2013 of at least
$2.1 trillion divided evenly between defense and non-defense spending
2012 Voting along party lines in February, members of the Joint Select Committee on Deficit
Reduction failed to agree on deficit reduction strategies, thereby activating the statutory
agreement there would be equal cuts to defense and non-defense spending in January 2013
2012 U.S. Supreme Court heard six hours of oral arguments on the constitutionality of the
Patient Protection and Affordable Care Act, with their decision pending.
2012 General Election