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From less than $800 million in 1916 to $18 billion in 1919, the government budget soared.

  • As new agencies were established, the federal government's efficiency rose dramatically. During World War I, the federal government of the United States saw incredible growth, allowing it to expand in size, scope, and authority.
  • Many industries, including the majority of the shipping industry, as well as the railroad, telephone, and telegraph, were nationalized. The Federal Reserve System considerably enhanced its power. Finally, several new government departments were created, resulting in a more efficient federal government.
  • The United States remained neutral for two and a half years until declaring war on Germany in April 1917. The Fed was called upon to help organize the country's financial resources for war when it was still learning the ropes of a new system of monetary control. As the military was deployed, federal spending increased.

Thus this was the effect of the expansion of the federal government during world war I.

Refer here to learn more about World War I: https://brainly.com/question/14427855

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