Spending Controls

March 20, 1957

Report Outline
Rebellion Against Huge Federal Budet
Limits on Power to Control Spending
Efforts to Fortify Control by Congress
Special Focus

Rebellion Against Huge Federal Budet

Demands From Country to Hold Down Spending

The biggest budget in the peacetime history of the United States, proposed by President Eisenhower for the fiscal year starting next July 1, has stirred up a storm of criticism. Members of Congress report that they are being inundated by demands from constituents for steep cuts in government outlays. A statutory limit on federal spending and other measures to put a tighter rein on expenditures are therefore receiving more serious consideration than at any time since early New Deal days.

The budget for fiscal 1958 calls for expenditures of $71.8 billion—almost $3 billion more than the total estimated for the present fiscal year. Soon after the budget was submitted to Congress last Jan. 16, Sen. William F. Knowland of California, Republican floor leader, urged a $2 billion cut. The chairman of the Senate Republican Policy Committee, Styles Bridges of New Hampshire, advocated a $3.3 billion cut, and the House Republican Policy Committee demanded a “substantial reduction.” Sen. Harry Flood Byrd (D-Va.), chairman of the Joint Committee on Reduction of Nonessential Federal Expenditures and the Senate Finance Committee, came out for a $5 billion slash.

Half a hundred House Republicans announced on Mar. 5 that they would support a resolution to limit federal spending in fiscal 1958 to $65 billion, or $6.8 billion less than proposed by the President. Two weeks later the Senate Government Operations Committee approved a bill, sponsored by 71 senators, to create a Senate-House budget committee “to provide for more effective evaluation of the fiscal requirements of the executive agencies of the government.” Such a bill has passed the Senate three times only to die in the House. Continued opposition by House Appropriations Committee leaders is expected this year notwithstanding economy demands.

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Budget Process
Deficit, Federal Debt, and Balanced Budget