What happened to the NRA in 1935?

• A. Abolished in 1930
• B. Removed by the Supreme Court in 1935
• C. Made permanent
• D. Expanded nationwide

Answer: (B)

The main idea here is how the constitutional limits on federal power affected New Deal programs. The National Recovery Administration was created in the early 1930s to promote industrial recovery by having codes of fair practice and setting prices. In 1935, the Supreme Court ruled that these codes were unconstitutional, striking down the National Industrial Recovery Act’s authority and effectively ending the NRA as it had operated. The Court held that Congress had overstepped its powers by delegating too much legislative authority to the executive branch and by attempting to regulate intrastate commerce in ways not permitted under the Constitution. This ruling halted the NRA’s programs, prompting the search for other approaches to economic reform. It wasn’t abolished in 1930, it wasn’t made permanent, and it wasn’t expanded nationwide—the plan was simply ruled invalid by the highest court.