This case describes the first budget cycle of the Reagan Administration, with a particular focus on the strategy for passage devised by the Republic White House of its "program for economic recovery" -- a combination of tax and spending cuts which became the signature of the Administration. The case details the obstacles faced by the Administration -- ranging from the fact that the Republican Party held a majority in any one House of Congress -- to an often hostile press and an ambiguous election year-mandate. Against a backdrop fo widespread doubt as to whether strong executive leadership was still possible in the US, the Administration succeeds in securing passage of a budget which seems to portend dramatic shifts in the role and extent of the federal government. The case looks at how and why Reagan was able to succeed and invites discussion of his leadership style and methods.