There has been a growing discussion in recent years about rising inequality in the U.S. Yet, this discourse, in focusing on the fortunes of the top 1%, distracted attention from the design of policy initiatives aimed at improving socio-economic conditions for the poor. This paper examines the development of anti-poverty politics and policy in the US during the Obama era. It analyses how effective the strategies and programmes adopted were and asks how they fit with models of policy change. The paper illustrates that the Obama administration did adopt an array of anti-poverty measures in the stimulus bill, but these built on existing programmes rather than create new ones and much of the effort was stymied by institutional obstacles. The expansion of the Medicaid program, which was part of the ACA, was also muted by institutional opposition, but it was a more path breaking reform than is often appreciated.