As the first national law to address racial discrimination in housing, the 1968 Fair Housing Act was truly a landmark piece of legislation. It prohibited homeowners, real-estate agents, lenders, and other housing professionals from engaging in a range of practices they had commonly used to keep neighborhoods racially segregated, such as refusing to sell or rent to a person because of his or her race, lying about the availability of a dwelling, or blockbusting (inducing white owners to sell by telling them that blacks were moving into the neighborhood). The last of the 1960s-era civil rights laws, the Fair Housing Act tackled the arena long felt to be the most sensitive to whites. Intense controversy, demonstrations, and violence over fair housing issues had occurred in many cities and states since at least the 1940s. Although John F. Kennedy promised during his presidential campaign to end housing discrimination “with the stroke of a pen,” once elected, he waited two years to sign a limited executive order. In 1966, a fair housing bill supported by President Johnson failed in Congress. Unlike other civil rights bills, the issue of housing evoked opposition not just from the South but also from the North. Opponents claimed that it challenged basic American values such as “a man's home is his castle”; to supporters, the symbolism of homeownership as “the American Dream” only underscored the importance of ensuring that housing was available to all Americans, regardless of race.

In 1971, a coalition of legislators and advocates put together a bill to establish the foundations of a public, universally available day-care system in the United States. Backed by Democrats, Republicans, and a highly mobilized set of interest organizations, the bill's middle-class appeal made it seem like a political sure bet in the months preceding the 1972 election season. Over the course of 1971, however, support for the bill eroded, and by December most House Republicans had jumped ship. On December 9, President Nixon vetoed the legislation, criticizing its “fiscal irresponsibility, administrative unworkability [sic], and family-weakening implications.” Such direct federal provision of day-care services, he claimed, “would commit the vast moral authority of the National Government to the side of communal approaches to child-rearing over the family-centered approach.” The day after the veto, however, Nixon signed the 1971 Revenue Act, which included tax breaks for families who use private day-care services. In late 1972, Congress passed legislation to reauthorize Head Start, a program providing early childhood education and health services for disadvantaged, preschool-aged children. Nixon's own welfare-reform proposal included day care for poor women. Clearly, only the middle class was at risk from “communal approaches” in federally supported child care; poor families, and particularly women on welfare, could use public day care while the middle class would be subsidized to solve their child-care problems through the private sector.

Scholars of the politics of public social policy have engaged in contentious debates over “institutional” and “political” theories. Institutional theories hold that U.S. social policy is inhibited by fragmented political institutions and weak executive state organizations. Political theories hold that the United States lacks a left-wing political party and a strong labor movement to push for social policy. Both theories are thus pessimistic about and cannot account for advances in U.S. social policy.