Omnibus Budget Reconciliation Act of 1981

The Omnibus Budget Reconciliation Act of 1981 is the federal budget enacted by the 97th United States Congress and signed into law by U.S. President Ronald Reagan.

The bill established federal expenditures for fiscal year 1982, which ran from 1 October 1981 through 30 September 1982.

The two bills progressed through Congress and were signed by the President together.

Ronald Reagan was elected on his platform of reducing overall federal spending while increasing spending on the military, cutting taxes and balancing the budget.

The tax and spending cuts comprised what some contemporaries described as Reaganomics and the "Reagan Revolution".

Ronald Reagan sits at a round lattice table with two huge stacks of paper and two microphones. He is wearing denim pants and a denim jacket. He is intently signing one of the stacks of paper. The table is in the gravel driveway in front of a modest timber and plaster house with a tile roof. The house is slightly obscured in fog.
President Ronald Reagan signing the Economic Recovery Tax Act of 1981 and the Omnibus Budget Reconciliation Act of 1981 at his Santa Barbara, California ranch, Rancho del Cielo, 13 August 1981. Photograph by official White House photographer, Karl Schumacher, courtesy of the Ronald Reagan Presidential Library (C03490-4A, https://www.reaganlibrary.gov/archives/photo/c03490-01 ).