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IV.    Veterans’ Administration Established

On July 21, 1930, the Veterans Bureau and other agencies administering veterans’ benefits were consolidated in the Veterans Administration, a new independent agency that thereafter handled most veterans' benefit programs.

The American Legion’s cause on behalf of disabled veterans’ benefits faced one of its greatest challenges during the depression of the early 1930s.  In 1933, the new national administration passed what has since been known as the infamous Economy Act, which wiped out a wide range of programs and benefits that had been won for disabled veterans by patient effort since the end of World War I.

However, The American Legion rallied to the crises in veterans’ affairs.  The National Rehabilitation Committee at the convention in Chicago, the same year, put forth the famous Four-Point Program. This was, briefly, that:

1. No veteran disabled in line of duty suffers any reduction in benefits granted under legislation in effect prior to March 19, 1933.
2. Federal hospitalization be afforded by veterans who are not dishonorably discharged, requiring such care, and are unable to pay reasonably for treatment.
3. Participation of service connection for all veterans properly granted such service connection under law in existence prior to March 20, 1933, shall be continued.
4. Benefits provided for dependents in the World War Veterans Act be restored, and the thought established that in no event should widows and orphans of deceased World War veterans be without government protection.

The American Legion’s unceasing fight on behalf of disabled veterans was rewarded on March 28, 1934, when Congress enacted Public Law 141, carrying out in full the recommendations of the first three provisions of the Four-Point Program.  Although this bill met with a presidential veto, Congress overrode the veto.  Thus, The American Legion recorded an outstanding accomplishment in the restoration of the major part of the benefits taken from disabled World War veterans by the Economy Act.

From this significant milestone, The American Legion has worked successfully for the passage of further legislation, liberalizing benefits for disabled veterans and bringing about the fourth provision of the Four-Point Program concerning protection of widows and orphans.

Since that major victory in 1934, the Legion has repeatedly mustered its resources to meet subsequent challenges to reduce the role of the Veterans Administration in its essential mission of providing for our sick and disabled veterans.  The increasing demand for VA hospital and medical services resulting from the returning wounded and disabled from Vietnam not only