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Modern liberalism in the United States is the dominant version of liberalism in the United States. Ideologically, all American parties are liberal and always have been. Essentially, they espouse classical liberalism—that is, a form of democratized Whig constitutionalism, plus the free market. The point of difference comes with the influence of social liberalism and combines ideas of civil liberty and equality with support for social justice and a mixed economy. Economically, modern American liberalism opposes cuts to the social safety net and supports a role for government in reducing inequality, providing education, ensuring access to healthcare, regulating economic activity and protecting the natural environment. This form of liberalism took shape in the 20th century United States as the franchise and other civil rights were extended to a larger class of citizens. Major examples include Theodore Roosevelt's New Nationalism, Woodrow Wilson's New Freedom, Franklin D. Roosevelt's New Deal, Harry S. Truman's Fair Deal, John F. Kennedy's New Frontier and Lyndon B. Johnson's Great Society.
 
In the first half of the 20th century, both major American parties had a conservative wing and a liberal wing. The conservative Northern Republicans and the conservative Southern Democrats formed the conservative coalition which dominated the Congress in the pre-Civil Rights era. As the Democratic Party under President Johnson began to support civil rights, the formerly Solid South, meaning solidly Democratic, became solidly Republican, except in districts with a large number of African-American voters. Starting in the 20th century, there has also been a sharp division between liberals who tend to live in denser, more heterogeneous communities and conservatives who tend to live in less dense, more homogeneous communities. Liberals as a group are referred to as the left and conservatives the right. The Democratic Party is considered liberal and the Republican Party is considered conservative.

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