In 1935, the Tennessee Valley Authority (TVA), which was concerned with the Little Tennessee's effect on flood control in the greater Tennessee Valley, began negotiating with Alcoa to assume control of the Fontana project. Although Alcoa preferred that TVA build the dam, TVA was unable to get necessary ffederal unding for the project until the outbreak of World War II in 1941. Emergency wartime initiatives called for a drastic increase in aluminum production. On August 14, 1941, TVA and ALCOA signed the "Fontana Agreement," which gave TVA possession of Fontana and control over the releases and output of Tapoco's Little Tennessee Valley dams, and in return guaranteed that Alcoa would be the primary benefactor of the dams' electrical output for at least twenty years. The U.S. Congress authorized funding on December 17, 1941, and construction of Fontana Dam began on January 1, 1942.