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The process of creating the budget for the United States government is known as the budget process. The framework used by Congress to formulate the budget was established by the Budget and Accounting Act of 1921, the Congressional Budget and Impoundment Control Act of 1974, and by other budget legislation.
Prior to 1974, Congress had no formal process for establishing a coherent budget. When newly-elected President Richard Nixon began to refuse to spend funds that the Congress had allocated, Congress needed a more formal means by which to challenge him. The Congressional Budget Act created the Congressional Budget Office and directed more control of the budget to CBO and away from the President's Office of Management and the Budget. The Act passed easily as the administration was embroiled in the Watergate scandal and unwilling to provoke Congress