Congress enacts the Impoundment Control Act, requiring presidential rescission requests

President Nixon signed the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), fundamentally restructuring the federal budget process and curtailing executive impoundment power. The law divided presidential spending actions into two categories: temporary deferrals, which Congress can override with a simple resolution, and rescissions, which require affirmative congressional approval within 45 days or funds must be released. Congress created the Congressional Budget Office and established new budget committees in both chambers to build its own fiscal capacity independent of the White House. Nixon signed the bill with little public opposition, as his administration was then consumed by the Watergate crisis.