World War Adjusted Compensation Act

The World War Adjusted Compensation Act, or Bonus Act, was a United States federal law passed on May 19, 1924, that granted a life insurance policy to veterans of military service in World War I. It was based on aggressive political lobbying by new veterans organizations. The actual payout was promised for 1945, but veterans would get a certificate immediately and they could borrow against it from banks. When the Great Depression began in 1929, demands for immediate payment escalated. Thousands of veterans marched on Washington in 1932 but were crushed by the U.S. Army.

In 1933-1936 President Franklin Roosevelt was friendlier but opposed immediate payment as demanded by Congressman Wright Patman. Congress passed it over Roosevelt's veto in 1936, and over $2 billion was given out immediately. It helped boost the overall economy. A major effort in 1944 was made to avoid a similar issue with World War II veterans, resulting in the G.I. Bill.