The most important item on Clinton's legislative agenda, however, was , the result of a taskforce headed by , aimed at achieving universal coverage. Though initially well-received, it was ultimately doomed by well-organized opposition from conservatives and the health insurance industry. It was the first major legislative defeat of Clinton's administration.
After two years of Democratic party control under Clinton's leadership, the proved disastrous for the Democrats. They lost control of both houses of Congress for the first time in 40 years, in large part due to stalled legislation, including a failed attempt to create a comprehensive health care system under a plan developed by First Lady . After the 1994 election, the spotlight shifted to the spearheaded by . The Republican-controlled Congress and Clinton sparred over the budget. The inability of Clinton and the Republican-controlled Congress to come to an agreement resulted in the longest government shutdown to date.
In the , Clinton was re-elected receiving 49.2% of the popular vote over Republican (40.7% of the popular vote) and candidate (8.4% of the popular vote), while the Republicans retained control of the Congress losing but a few seats. Clinton developed a close working relationship with , the of the , when he was elected in .
In 1998, as a result of issues surrounding personal indiscretions with a young female White House intern (), Clinton was the second U.S. president to be impeached by the House of Representatives. He was tried in the Senate and found not guilty of the charges brought against him. Clinton initially denied having any improper relationship with Lewinsky, but later admitted that it had in fact taken place. He apologised to the nation for his actions and continued to have unprecedented popular approval ratings for his job as president.
In 1999, through Clinton's and the Congress's efforts, the United States had a projected federal budget surplus for the first time since . He took a personal interest in in and paid three visits there while he was president in order to encourage peace. His involvement was an important element in the peace process which set in motion the disarmament of the (PIRA) on , .
During Clinton's tenure, the U.S. enjoyed continuous economic expansion, reductions in unemployment, and growing wealth through a massive rise in the . The economic boom ended shortly after his term ended, possibly indicative of a ; Although the reasons for the expansion are continually debated, Clinton proudly pointed to a number of economic accomplishments, including more than 22 million new jobs, homeownership rate increase from 64.0% to 67.5%, lowest unemployment rate in 30 years, higher incomes at all levels, largest budget deficit in American history converted to the largest surplus of over $200 billion, lowest government spending as a percentage of GDP since 1974 and higher stock ownership by families than ever before.
The reasons for this growth are hotly debated, but Clinton supporters cite his as the reason that eventually led to the reduction in the annual budget deficits every year of his tenure. These deficit reductions stimulated comsumption and consumer spending, and strengthening the dollar, which encouraged foreign investment in the United States economy. supported the 1993 tax increase, which was approved by Congress without a single Republican vote. His critics credit , the Republican Congress' 1995 spending cuts, the initiatives, and even 's .
Many believe he was the most skilful politician to occupy the White House since Lyndon Johnson, and one of the toughest. He remains a man of puzzling and inconsistent political principles - announcing that "the era of big government is over" even as he unveils dozens of new initiatives. And the President who promised the "most ethical administration" in history has presided over one in which resignations for ethical cause, indictments, convictions, judicial reprimands, appointments of special investigative prosecutors, and continuing questions about ethical and possibly criminal behaviour, including his own, have played a defining role.
