Franklin D. Roosevelt was inaugurated as president as the Great Depression continued and public confidence in banks was collapsing. The crisis set the stage for the New Deal: a series of federal actions intended to provide relief (immediate help), recovery (economic growth), and reform (long-term rules to prevent another collapse).
After declaring a nationwide bank holiday, Roosevelt backed the Emergency Banking Act to restart banking under federal oversight. The law aimed to restore trust so deposits would return to banks, reducing runs and hoarding. This early success helped the administration move quickly into broader New Deal programs.
Congress authorized emergency conservation work that became the Civilian Conservation Corps (CCC). The CCC put young men to work on projects like planting trees, fighting fires, and building trails and park facilities. It linked unemployment relief to long-term public improvements in forests and parks.
The Agricultural Adjustment Act (AAA) sought to raise farm prices by reducing crop surpluses and supporting farmers’ incomes. It created a major federal role in agricultural markets during a time when many farms faced foreclosure and very low prices. The program became central to New Deal farm policy, even as parts of it later faced court challenges.
The Tennessee Valley Authority (TVA) was created to improve navigation, manage floods, and promote economic development in the Tennessee Valley. It became known for building dams and producing electricity, while also supporting wider regional planning. The TVA showed how the New Deal used federal agencies to address multiple problems at once.
The Banking Act of 1933 (often called Glass–Steagall) separated commercial banking from investment banking and created federal deposit insurance through the FDIC. These reforms aimed to reduce risky behavior and rebuild trust after widespread bank failures. They became a lasting part of how the U.S. regulated banks.
The Gold Reserve Act transferred ownership of U.S. monetary gold to the Treasury and restricted redemption of dollars for gold. It was the culmination of the administration’s gold policy during the Depression and was meant to give the government more control over money and credit conditions. This reflected the New Deal’s willingness to use federal power to stabilize the economy.
In Schechter Poultry Corp. v. United States, the Supreme Court invalidated key parts of the National Industrial Recovery Act (NIRA), a major early New Deal program. The decision limited how far the federal government could go in setting industry-wide “codes” and highlighted constitutional barriers facing New Deal experiments. The ruling pushed the administration toward other approaches, including stronger labor legislation.
The National Labor Relations Act (Wagner Act) created the National Labor Relations Board and protected many private-sector workers’ rights to organize and bargain collectively. It aimed to reduce disruptive labor conflict by creating a clear federal process for union elections and unfair labor practice cases. This was a key turning point in the New Deal’s shift toward labor rights as part of economic recovery.
The Social Security Act established federal old-age benefits and also supported unemployment insurance and certain public assistance programs. It marked a major change: the federal government accepted a long-term role in protecting people against economic insecurity. Over time, Social Security became one of the New Deal’s most enduring legacies.
The Banking Act of 1935 reorganized parts of the Federal Reserve System and finalized reforms that began earlier in the decade. It strengthened the Board of Governors’ role and helped shape the modern structure of U.S. central banking. The law reflected the New Deal’s emphasis on financial reform as a foundation for recovery.
After several New Deal measures were struck down, Roosevelt proposed legislation to add a new justice for each sitting justice over a certain age who did not retire. Critics called it the “court-packing plan,” and it became a major political fight even within Roosevelt’s party. The controversy showed the limits of New Deal power and the importance of the Supreme Court in shaping what reforms could last.
The Fair Labor Standards Act (FLSA) set a federal minimum wage, limited work hours with overtime rules, and restricted oppressive child labor in covered industries. It aimed to reduce extreme low-wage competition and improve basic labor conditions during the Depression. The law became a long-term national standard for many workplaces.
The Reorganization Act of 1939 gave the president new authority to reorganize executive agencies and led to creation of the Executive Office of the President. It helped consolidate and manage the many programs and agencies created during the New Deal years. Often, 1939 is treated as a closing point for the New Deal era as the administration’s focus increasingly shifted toward national defense and the approaching global war.
The New Deal (1933–1939)