What was the purpose of the Omnibus Budget Reconciliation Act of 1990 (OBRA-90)?

• A. Raised taxes and increased entitlement spending without reform.
• B. Expanded job training programs but did not cut deficits.
• C. Changed several social programs through broader tax changes.
• D. Restructured entitlement programs and reduced deficits through spending cuts and tax changes; changed many social programs.

Answer: (D)

OBRA-90 was a deficit-reduction package that used both spending cuts and tax changes, and it restructured entitlement programs to change how social programs operated. This reflects why the correct answer is the best: it shows that the bill aimed to shrink the deficit by trimming or reforming entitlement programs (like Medicare, Medicaid, and related welfare policies) while also raising revenue through tax changes. The result was a broad shift in how many social programs were run, not simply a broad tax increase or a pure expansion of spending. The other descriptions miss this combined approach or the reform of entitlements and social programs, making them incomplete.