AI Overview

President Bill Clinton balanced the federal budget and achieved budget surpluses from fiscal years 1998 to 2001, driven by the Balanced Budget Act of 1997, a strong national economy, and earlier deficit-reduction policies.

Key Actions and Policies
1993 Economic Plan:
Raised taxes on top earners and placed strict limits on government spending to start cutting massive deficits.
Balanced Budget Act of 1997:
Partnered with a Republican-led Congress to pass major spending cuts, particularly to Medicare providers, while funding children's health and education.
The Dot-Com Boom:
Benefited from high capital gains tax revenues generated by a rapidly growing technology sector and a booming 1990s job market.

Results and Surpluses
First Surplus:
Recorded a $69 billion budget surplus in 1998, the first time the U.S. government balanced the budget since 1969.
Consecutive Surpluses:
Achieved four straight years of surpluses through fiscal year 2001, peaking at a $236 billion surplus in 2000.