Politics | Barack Obama Obama Targets Social Security, Medicare Faced with trillion-dollar deficit, president-elect vows reform, trims By Jason Farago Posted Jan 8, 2009 7:38 AM CST Copied President-elect Barack Obama introduces Nancy Killefer, not shown, to the newly created position of chief performance officer, Wednesday, Jan. 7, 2009, at his transition office in Washington. (AP Photo/Lawrence Jackson) In his first foray into the hazardous terrain of entitlement programs, Barack Obama said yesterday that his administration would overhaul Social Security and Medicare to clamp down on government spending. At a news conference and in a subsequent interview with the New York Times, the president-elect said, "If we do nothing, then we will continue to see red ink as far as the eye can see." This week the Congressional Budget Office projected an unprecedented $1.2 trillion budget deficit for 2009—even before Obama introduces his stimulus package, estimated at around $800 billion. For lawmakers and investors, promises of entitlement reform are critical reassurances that Obama will not allow public finances to spiral out of control. But the president-elect may face an uphill battle to transform the two mega-programs: President Bush failed in his campaign promise to overhaul Social Security, and Medicare has only grown. Read These Next After girl goes overboard on cruise, 'hero' dad to the rescue. Kohberger agrees to plea deal in Idaho killings. UPS driver hits the Slip 'N Slide with some partying teens. Obituary reveals teacher's same-sex marriage, and he's fired. Report an error