Search Penny Hill Press

Tuesday, November 2, 2010

History of the Joint Committee on Reduction of Non-Essential Federal Expenditures (1941-1974), with Observations on Oversight Today


Michael L. Koempel
Senior Specialist in American National Government

Justin Murray
Information Research Specialist

PJ Tabit
Research Associate


With today’s large federal deficit, some Members of Congress have become interested in institutional mechanisms that Congress has used in the past in attempts to address one component of this issue—federal spending. One mechanism that has drawn interest is the Joint Committee on Reduction of Non-Essential Federal Expenditures, which existed from 1941 to 1974. It was also known eponymously as the Byrd committee, after its advocate and long-time chair, Senator Harry F. Byrd. The joint committee was established by Section 601 of the Revenue Act of 1941, and terminated by the Congressional Budget and Impoundment Control Act of 1974.

In reporting the Revenue Act, the Senate Finance Committee recommended an amendment to create the joint committee with the duty to “make a full and complete study and investigation of all expenditures of the Federal Government with a view to recommending the elimination or reduction of all such expenditures deemed by the joint committee to be nonessential.”

On the eve of U.S. entry into World War II, the federal debt was so high and the prospect of war so certain that immediate action was required to strengthen federal finances. The call in Congress and among policymakers, then, for a reduction of nonessential federal expenditures served many purposes. Spending that was eliminated would save money that could be applied to the war effort. American taxpayers, it was argued, would be more willing to shoulder the high taxes needed to fund the war if they saw that the federal government was acting frugally. Finally, reduced federal deficit spending could help lessen potentially damaging rates of inflation.

The joint committee was a study committee, without legislative authority. Its recommendations on cutting or reducing nonessential spending were reported to the House and Senate and submitted to the Appropriations Committees. Individual Members might also have been interested in the joint committee’s work and have based arguments or amendments on the committee’s recommendations. It is not possible to track the joint committee’s influence over the course of its existence, although the provenance in 1974 of the Budget Committees’ scorekeeping was the joint committee’s scorekeeping reports.

The work of the joint committee was characterized by a dual narrative—one of genuine interest in reducing federal expenditures, and another concerned with projecting legislative control over federal spending. This report briefly discusses representative investigations conducted by the joint committee and several issues that interested the joint committee over much of its existence.

With political support, creation of a new committee with a role in cutting federal spending would be a straightforward process. The House or Senate may create a committee through adoption of a simple resolution or by law. Together they may create a joint committee through adoption of a concurrent resolution or by law. A committee may be created as a study committee, or it may be given legislative authority. This report concludes with some considerations involved with the creation of a committee—the purpose of which is to assist Congress in reducing federal spending—and with a brief examination of committee oversight authority extant in House and Senate committees and of alternative mechanisms for cutting spending. 
.


Date of Report: October 26, 2010
Number of Pages: 23
Order Number: R41465
Price: $29.95

Follow us on TWITTER at
http://www.twitter.com/alertsPHP or #CRSreports

Document available via e-mail as a pdf file or in paper form.
To order, e-mail
Penny Hill Press  or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.