Backronym
Examples
Many United States Congress bills have backronyms as their names; examples include the USA PATRIOT Act (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act) of 2001, the CHIPS and Science Act (Creating Helpful Incentives to Produce Semiconductors), and the DREAM Act (Development, Relief, and Education for Alien Minors Act).
As false etymologies
Sometimes a backronym is reputed to have been used in the formation of the original word, and amounts to a false etymology or an urban legend. Acronyms were rare in the English language before the 1930s, and most etymologies of common words or phrases that suggest origin from an acronym are false.
As false etymologies
Examples include posh, an adjective describing stylish items or members of the upper class. A popular story derives the word as an acronym from "port out, starboard home", referring to 19th-century first-class cabins on ocean liners, which were shaded from the sun on outbound voyages east (e.g. from Britain to India) and homeward voyages west. The word's actual etymology is unknown, but more likely related to Romani påš xåra ('half-penny') or to Urdu (borrowed from Persian) safed-pōśh ('white robes'), a term for wealthy people.