What act led to the creation of the Office of Management and Budget (OMB)?

The Budget and Accounting Act of 1921 is the correct answer because this legislation was pivotal in reorganizing the federal budget process and established the foundation for modern federal financial management. One of the key outcomes of this act was the creation of the Bureau of the Budget, which later evolved into the Office of Management and Budget (OMB). This evolution allowed for more structured oversight and coordination of the budget across various federal agencies, thereby enhancing the government's efficiency in managing public funds.

This act also introduced a systematic approach to fiscal management by requiring the President to submit an annual budget to Congress, establishing a precedent for transparency and accountability in government spending. The creation of the OMB under the auspices of this act allowed for a central authority that could oversee budgetary proposals, adherence to financial regulations, and overall management of federal expenditures, contributing to a more structured budgeting process.

The other options relate to different aspects of federal policy but do not pertain directly to the creation of the OMB or the foundational changes in budget management in the federal government initiated by the Budget and Accounting Act of 1921.