When Franklin D. Roosevelt took over from Herbert Hoover in 1933, the United States was going through a time of great crisis. The Great Depression, and later the Dust Bowl, had hit the nation hard, causing widespread unemployment, business and farm failures, and severe international trade problems. In order to combat the nation’s problems, FDR developed his New Deal “alphabet agencies.” ThisAPUSH reviewwill list every New Deal program and initiative, from 1933 to 1938 chronologically, split up into he First New Deal and the Second New Deal. The programs in bold are the ones you should study the most for the AP® US History exam. Don’t get too hung up on the details of each agency or act, but make sure you have a good general knowledge of them.
The First New Deal
The First New Deal dealt with the immediate and pressing needs of the nation. Focusing on recovery, it’s immediate goals were decreasing unemployment and providing welfare to needy Americans.
1933
March 9: Emergency Banking Relief Act
Before this act, banks were not always a safe place to keep your money. Banks could lose all of your money and fail. FDR attempted to fix this problem by shutting down all US banks for a period of four days. During that time, he introduced the Emergency Banking Relief Act, which allowed the treasury secretary to issue loans to banks in need, limit operations of banks who were failing, and giving the president executive power to investigate and regulate banks during emergencies. The act restored the American public’s confidence in the banking system and the stock market began to recover.
March 20: Economy Act
The Economy Act cut the salaries of government employees and reduced benefits to veterans by 15%. The goal of this act was to reduce federal debt by $500 million, but only ended up reducing it by $243 million. Ultimately the Economy Act had little to no effect on the federal deficit or the economy in general.
March 22: Beer-Wine Revenue Act
Legalized the sale of beer and wine with an alcohol content of less than 3.2% and raised much needed tax revenue. Since FDR was not a fan of prohibition, this act effectively amended the National Prohibition Act and relaxed alcohol laws. It was eventually replaced by the Twenty-First Amendment.
March 31: Civilian Conservation Corp (CCC)
This was one of the most popular and successful relief programs of the New Deal. It put unemployed, unmarried men (and eventually unemployed war veterans) to work planting trees, building fire towers, restoring forests, and creating camp grounds and picnic areas. Workers received free food, accommodation, clothing, medical care, and a salary. The program ended in 1942 but has lasting effects on the infrastructure of the United States.
May 12: Federal Emergency Relief Act
Created the Federal Emergency Relief Administration (FERA), which provided state assistance to the unemployed and their families. It also created unskilled jobs in local and state government and provided projects for professionals (writers, actors, etc.) FERA terminated in 1935 and was taken over by other similar programs.
May 12: Agricultural Adjustment Act (AAA)
This act limited farm production to help raise prices. It worked by paying farmers to reduce their crop production and kill off excess livestock. This prevented a surplus and increased crop/livestock prices. The AAA was eventually declared unconstitutional by theUS Supreme Courtbut it helped to raise farming incomes by nearly 50%.
May 18: Tennessee Valley Authority Act (TVA)
A relief program that built dams, controlled flooding, and brought electricity, and agricultural and industrial development to rural areas in the Tennessee Valley, which was hit hard by the Depression. This program made farms more productive, brought new industries to the area, and provided jobs to those who were unemployed. The TVA is still in existence to this day and is the nation’s largest public power provider.
June 6: National Employment System Act (Wagner-Peyser Act)
This act established a national employment system, known as the United States Employment Service (USES), which assisted with state public employment services, provided a labor exchange system, and created job-finding assistance to unemployed Americans.
June 13: Home Owners Loan Act
Created the Homeowners Loan Corporation (HOLC), which provided financing for small homes to prevent foreclosure and allowed homeowners to pay off loans in monthly installments over the course of several years. Eventually led to 25- or 30-year mortgages. The HOLC stopped operating in 1951.
June 16: National Industrial Recovery Act (NIA)
Created the National Industrial Recovery Administration (NRA), which promoted industrial growth and recovery. Supported fair competition in businesses, established the right for workers to bargain collectively, regulated working hours, and more. The NIA is widely considered to be a failure, since it led to monopolies, labor unrest, and lack of support in the business community.
June 16: Public Works Administration (PWA)
An agency that spent over $3.3 billion dollars on public works projects, creating jobs and providing loans to private industries for the creation of large-scale projects, such as bridges, power plants, hospitals, sewage plants, and more. It’s notable that this program include African Americans workers. The program ended when FDR started gearing up for WWII.
June 16: Glass-Steagall Act (Banking Act)
This act established the Federal Deposit Insurance Corporation (FDIC), which gave government the authority to investigate and supervise banks, gave federal oversight to all commercial banks, and stopped banks from paying interest on checking accounts, among other banking reform measures. Parts of this act were later repealed in 1999, which some say led to the financial crisis of the late 2000s. The FDIC still exists today.
November 8: Civil Works Administration (CWA)
The CWA was a temporary job creation program that put unemployed people to work building bridges, sewage systems, roads, and more. By the time it ended in 1934, over 4 million people had been given jobs and 225,000 miles of road, 30,000 schools, 3,700 playgrounds, and 1,000 airports had been constructed.
1934
January 30: Gold Reserve Act
This act changed the price of gold from $20.67 per troy ounce to $35. This increased the amount of money in circulation, which greatly helped the economy. It also helped the government control the fluctuations of the US dollar.
June 6: Securities & Exchange Act
This act, which established the Securities and Exchange Commission (SEC), had thegoal of preventing another Wall Street Crash. It helped regulate the stock market, enforce federal security laws, and required full disclosure of stock information.
June 18: Indian Reorganization Act (Wheeler-Howard Act)
Sometimes called the “Indian New Deal,” this act decreased government control over American Indian affairs, encouraging written constitutions, self-government, and a credit program to foster land purchases, education, and tribal organization. It helped Indian people survive the Depression and improved relations with American Indians and the government. Today, this act is still used as the basis for laws regarding Indian affairs.
June 28: National Housing Act
The National Housing Act created the Federal Housing Administration (FHA), the United States Housing Authority, and the Federal Savings and Loan Insurance Corporation. These agencies made low-interest, long-term loans for the construction of low-income housing. It lowered foreclosures on homes, and formed the basis of the mortgage and housing industries.
June 28: Federal Farm Bankruptcy Act
This act limited the ability of banks to repossess farms. It was later ruled unconstitutional.
The Second New Deal
The Second New Deal focused on reforming the nation. It consisted of more aggressive and liberal programs and responded to the Supreme Court’s resistance of previous campaigns.
1935
April 8: Emergency Relief Appropriation Act
FDR initiated this act as a way to get jobless Americans back to work, employing them in large-scale public works, arts, media, and drama programs. Nearly $5 billion was authorized to create jobs for over 4 million people.
April 8: Works Progress Administration (WPA)
Out of the Emergency Relief Appropriation Act came the Works Progress Administration (WPA). This was the largest of all New Deal agencies and mostly employed people to perform unskilled work, constructing public buildings, roads, airfields, hospitals, and more. The WPA also created Federal Project Number One, which was the name for a number of projects that employed Americans in the categories of Art, Music, Theater, Writing, and Historical Records. Any American was allowed to participate, regardless of race, color, religion, or political affiliation.
May 1: Resettlement Administration (RA)
FDR established the Resettlement Administration (RA) for the purpose of relocating and resettling poor urban and rural families who had been displaced, implementing soil conservation programs, and providing low-interest loans. Due to poor management, the program was not as effective as intended and the agency eventually became the Farm Security Administration in 1937.
May 11: Rural Electrification Administration (REA)
The REA was created to bring electricity to rural areas. At the time of the Great Depression, 90% of urban areas had electricity, but only 10% of rural locations did. The REA was a success: by 1939, 25% of rural areas had electricity and by 1945, 9 out of 10 farms had electricity. This completely changed the lives of many rural families and farmers, who now had access to radios, running water, refrigeration, and more.
July 5: National Labor Relations Act (Wagner Act)
The Wagner Act is a very important piece of labor legislation you need to know about for the APUSH exam. It established the National Labor Relations Board, securing workers’ rights to collectively bargain, organize, and strike. It was very important in stopping employers from interfering in workers’ unions and in preventing unjust working conditions. It is still an important law today.
August 14: Social Security Act
This social welfare act created the Social Security system in the US. This marked the first time a president advocated for federal assistance for the elderly. The act provided benefits and support to retirees, the unemployed, the handicapped, and the aged. It excluded many women and minorities at first, but it has changed over time to improve the lives of millions of Americans.
August 23: Banking Act
(Basically an extension of the 1933 Glass-Steagall Banking Act). The Banking Act of 1935 finished the dramatic alteration of the Federal Reserve Bank that began during the Hoover administration. It made the Federal Reserve Bank more independent from the Executive and Legislative branches and made the Federal Deposit Insurance Corporation (FDIC) a permanent government agency. This act helped further restore public confidence in the US banking system.
August 30: Revenue Act (Wealth Tax Act)
FDR signed The Revenue Act of 1935 to help redistribute wealth in America. It worked by raising income taxes on higher income levels. This was known as the “Wealth Tax,” and took up to 75% of the highest income earners. The tax angered some Americans and many wealth people found loopholes to evade the tax. It’s important to note here that FDR most likely imposed this tax as a means to win voters, as it was an election year, and not to create any long-term solutions.
1936
February 29: Soil Conservation & Domestic Allotment Act
After the Agricultural Adjustment Act of 1933 was deemed unconstitutional in 1936, FDR signed the Soil Conservation & Domestic Allotment Act into law. With the ultimate goal of conserving soil and preventing erosion on farmland, this law allowed the government to pay famers to stop producing soil-depleting crops. Landlords were also required to share these payments with the people who worked on their land. The act was successful: in three years, soil erosion was down by 21.7% and many of the “dust bowl” effects had been reversed.
1937
July 22: Bankhead-Jones Farm Tenant Act
This act’s main goal was to make sure sharecroppers and tenants could remain on their land. It also provided low-interest loans for tenants to buy family farms. The impact of this act was limited since small farms had to compete with the bigger farms previously formed by the Agricultural Adjustment Act (AAA).
August 26: Judicial Procedures Reform Bill (“Court Packing”)
In order to combat the Supreme Court striking down any further New Deal programs and acts as unconstitutional, FDR decided to reorganize the system. For the AP® US History exam, it is essential that you know about his “court packing” scheme. It’s also important to realize that it never passed. FDR proposed that the President should be given the power to add a new Supreme Court justice for every member over the age of 70 ½ (up to a maximum of 6). The entire plan was very unpopular and was received negatively.
September 1: Housing Act (Wagner-Steagall Housing Act)
Created the United States Housing Authority (USHA) for the purpose of abolishing slums.It provided $500 million in loans for low-cost constructing projects for low-income families. The act ultimately led to greater economic security for thousands of Americans and was essential for creating housing for WWII defense workers.
September: Farm Security Administration (FSA)
The main goal of the Farm Security Administration was to alleviate rural poverty in America. It sought to relocate tenants, poor farmers, and sharecroppers onto government-owned group farms. It also developed a successful photography project, which documented the challenges of living in rural poverty. However, the FSA was ultimately a failure because farmers wanted to own their land and because WWII created jobs in the cities for poor farmers to fill.
1938
February 16: Federal Crop Insurance Corporation (FCIC)
Both the Great Depression and the Dust Bowl drought made producing crops difficult for rural farmers. This meant that they couldn’t produce enough crops to feed themselves or to sell. Because of this, FDR created the FCIC to provide insurance for farmers’ crops, meaning that they could receive compensation for their crops, even if they did not produce said crops. It is still active today.
July 31: Fair Labor Standards Act (FLSA)
This act introduced laws concerning labor standards. It introduced the forty-hour work week, set minimum wage, made it illegal to employ anyone under the age of 16, and more. FDR called the FLSA the most important New Deal legislation since the Social Security Act of 1953. 700,000 workers were affected by the wage increase and 13 million were affected by the new working hours limitations. The FLSA is still in place today.
Summary
Knowing each and every one of the listed New Deal programs isnotessential to do well on the APUSH Exam. However, reviewing the list and understanding each program in context can give you a better knowledge of the New Deal and what FDR’s goals were. The AP® US History exam mostly focuses on the impacts and effects of certain New Deal programs, so be sure to focus those. With all of this New Deal knowledge, you are sure to do well on the exam!
Looking forAP® US History practice?
Kickstartyour AP® US History prepwith Albert.Start your AP® exam prep today.
