Bill Clinton positioned himself as a "New Democrat" as he campaigned for office in the 1992 election. In some ways, this was actually similar to John F. Kennedy in particular, who also accepted many conservative ideals, including tax cuts, along with a more expansive vision of the social contract. Clinton accepted the general rightward shift that occurred nationwide in the early 1980s, sounding much like a conservative as he promoted welfare reform, promising to "end welfare as we know it." In so doing, he accepted the conservative belief, held by many Americans, that the welfare system as it then existed promoted dependence on the state rather than individual hard work and initiative. His new measure established flexible block grants, favored by Republicans since the Nixon presidency because they gave more control of spending to the states. Clinton also endorsed free trade, a position long held by many libertarian-minded conservatives, as he signed the North American Free Trade Agreement (NAFTA) in the middle of his first term. He signed off on crime legislation that also reflected Republican assumptions.

In other important ways, however, Clinton sought to extend the legacy of liberalism that traced back even further than Kennedy and Johnson to the New Deal. He tried, and failed, to get a universal healthcare system enacted. Universal healthcare had long been a goal of liberals, but Clinton's measure, seen as too complicated and costly, was defeated in a drawn-out political struggle that spanned his first term. Clinton's attempts to chart a middle ground between traditional Democratic liberalism and conservative initiatives led to the enactment of a great deal of compromise legislation, but did not endear him to Republicans, which contributed to his impeachment in the winter of 1998–'99.