This legislation updated the National Defense Act of 1916 to reorganize the United States Army and decentralize the procurement and acquisitions process for equipment, weapons, supplies and vehicles.

In spring 1920, the Army launched a new recruiting campaign, which was judged to have "fizzled," but men continued to enlist at a relatively consistent rate.

[8] In June 1920, both houses of Congress approved military appropriations that would give the Army enough money to maintain 175,000 men; opponents of the bill stated it was in direct conflict with the figures given in the National Defense Act amendments.

President Woodrow Wilson vetoed the appropriations bill, but Congress overrode him, and Secretary of War Baker halted recruiting in February 1921.

Despite the threat of mass demotions for senior enlisted men, only all "surplus" noncommissioned officers (those above the allowed number in each rank for whom no military occupation could be found) were reduced by one grade.

A compromise for funds for 125,000 men was worked out, and the Army was forced to begin involuntary demotions of noncommissioned officers.

Having chosen to make a career out of the Army and raise families on the additional pay, they now found potential promotions blocked by younger men.

Members were required to be honorably discharged Regular Army soldiers who were unmarried, not over thirty-six years of age, and who could pass a physical examination.

Enlistees received $24.00 a year, paid quarterly, if they reported their most recent address to their corps area commander for mobilization purposes.

The need for specialists in procurement and mobilization planning led to the 1924 creation of the Army Industrial College.