The American Legion records one of its most significant legislative victories ever by driving forward Public Law 141, which is vetoed by President Franklin D. Roosevelt but later overridden by Congress, protecting disabled veterans and their benefits from federal budget cuts under the Economy Act.

The battle to protect veterans benefits during the Depression had begun nearly two years earlier, and in the meantime, veterans from across the country marched on Washington to obtain payment of adjusted federal compensation – “bonuses” – that were not set to mature until 1945. The bonus march divided many American Legion members, but the organization stood by the preamble to its constitution and called for peace, law and order. The American Legion, after much debate, ultimately calls for immediate payment of the bonuses.