The President:
Thank you. (applause) Madame Speaker, Vice President
Biden, Members of Congress, distinguished guests, and fellow
Americans: Our Constitution declares that from time to time,
the President shall give to Congress information about
the state of our union. For 220 years, our leaders
have fulfilled this duty. They've done so during periods
of prosperity and tranquility. And they've done so in the
midst of war and depression; at moments of great
strife and great struggle. It's tempting to look back on
these moments and assume that our progress was inevitable --
that America was always destined to succeed. But when the Union was turned
back at Bull Run and the Allies first landed at Omaha Beach,
victory was very much in doubt. When the market crashed on
Black Tuesday and civil rights marchers were beaten
on Bloody Sunday, the future was
anything but certain. These were the times that tested
the courage of our convictions, and the strength of our union. And despite all our
divisions and disagreements; our hesitations and our fears;
America prevailed because we chose to move forward as
one nation, as one people. Again, we are tested. And again, we must
answer history's call. One year ago, I took
office amid two wars, an economy rocked by
a severe recession, a financial system on
the verge of collapse, and a government deeply in debt. Experts from across the
political spectrum warned that if we did not act, we might
face a second depression. So we acted -- immediately
and aggressively. And one year later, the worst
of the storm has passed. But the devastation remains. One in ten Americans
still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural
communities have been hit especially hard. And for those who'd
already known poverty, life's become that much harder. This recession has also
compounded the burdens that America's families have been
dealing with for decades -- the burden of working
harder and longer for less; of being unable to save enough
to retire or help kids with college. So I know the anxieties that
are out there right now. They're not new. These struggles are the
reason I ran for President. These struggles are what I've
witnessed for years in places like Elkhart, Indiana;
Galesburg, Illinois. I hear about them in the
letters that I read each night. The toughest to read are
those written by children -- asking why they have to
move from their home, asking when their mom or dad
will be able to go back to work. For these Americans
and so many others, change has not come fast enough. Some are frustrated;
some are angry. They don't understand why it
seems like bad behavior on Wall Street is rewarded but hard
work on Main Street isn't; or why Washington has been
unable or unwilling to solve any of our problems. They're tired of the
partisanship and the shouting and the pettiness. They know we can't afford it. Not now. So we face big and
difficult challenges. And what the American people hope --
what they deserve -- is for all of us,
Democrats and Republicans, to work through our differences;
to overcome the numbing weight of our politics. For while the people who sent us
here have different backgrounds, different stories,
different beliefs; the anxieties they
face are the same. The aspirations they
hold are shared. A job that pays the bills. A chance to get ahead. Most of all, the ability to give
their children a better life. And you know what
else they share? They share a stubborn resilience
in the face of adversity. After one of the most
difficult years in our history, they remain busy building
cars and teaching kids; starting businesses and
going back to school. They're coaching little league
and helping their neighbors. One woman wrote me and said,
"We are strained but hopeful, struggling but encouraged." It's because of this spirit --
this great decency and great strength -- that I have
never been more hopeful about America's future
than I am tonight. (applause) Despite -- (applause) Despite our hardships,
our union is strong. We do not give up. We do not quit. We do not allow fear or
division to break our spirit. In this new decade, it's time
the American people get a government that
matches their decency; that embodies their strength. (applause) And tonight -- tonight, I'd
like to talk about how together, we can deliver on that promise. It begins with our economy. Our most urgent -- (applause) -- our most urgent task upon
taking office was to shore up the same banks that
helped cause this crisis. It was not easy to do. And if there's one thing that
has unified Democrats and Republicans -- and
everybody in between -- it's that we all
hated the bank bailout. I hated it. (applause) I hated it. (applause) I hated it. You hated it. It was about as popular
as a root canal. (laughter) But when I ran for President, I
promised I wouldn't just do what was popular -- I would
do what was necessary. And if we had allowed the
meltdown of the financial system, unemployment might
be double what it is today. More businesses would
certainly have closed. More homes would have
surely been lost. So I supported the last
administration's efforts to create the financial
rescue program. And when we took
that program over, we made it more transparent
and more accountable. And as a result, the
markets are now stabilized, and we've recovered most of the
money we spent on the banks. (applause) Most, but not all. To recover the rest, I've
proposed a fee on the biggest banks. Now -- (applause) Now, I know Wall Street
isn't keen on this idea, but if these firms can afford
to hand out big bonuses again, they can afford a modest fee
to pay back the taxpayers who rescued them in
their time of need. (cheers and applause) Now, as we stabilized
the financial system, we also took steps to get
our economy growing again, save as many jobs as possible,
and help Americans who'd become unemployed. That's why we extended or
increased unemployment benefits for more than 18
million Americans; made health insurance 65%
cheaper for families who get their coverage through COBRA;
and passed 25 different tax cuts. Now, let me repeat:
we cut taxes. We cut taxes for 95%
of working families. We cut taxes for
small businesses. We cut taxes for
first-time homebuyers. We cut taxes for parents trying
to care for their children. We cut taxes for 8 million
Americans paying for college. (cheers and applause) I thought I'd get some
applause on that one. (laughter and applause) As a result -- (applause) As a result, millions of
Americans had more to spend on gas, and food, and
other necessities, all of which helped
businesses keep more workers. And we haven't raised income
taxes by a single dime on a single person. Not a single dime. (applause) Now, because of
the steps we took, there are about two million
Americans working right now who would otherwise be unemployed. (applause) 200,000 work in construction
and clean energy. 300,000 are teachers and
other education workers. Tens of thousands are
cops, firefighters, correctional officers,
first responders. (applause) And we're on track to add
another one and a half million jobs to this total by
the end of the year. The plan that has made
all of this possible, from the tax cuts to the
jobs, is the Recovery Act. That's right -- the Recovery Act,
also known as the Stimulus Bill. (applause) Economists on the left and the
right say this bill has helped saved jobs and avert disaster. But you don't have to
take their word for it. Talk to the small business in
Phoenix that will triple its workforce because
of the Recovery Act. Talk to the window manufacturer
in Philadelphia who said he used to be skeptical about
the Recovery Act, until he had to add two more
work shifts just because of the business it created. Talk to the single teacher
raising two kids who was told by her principal in the last week
of school that because of the Recovery Act, she wouldn't
be laid off after all. There are stories like
this all across America. And after two
years of recession, the economy is growing again. Retirement funds have started to
gain back some of their value. Businesses are beginning
to invest again, and slowly some are
starting to hire again. But I realize that for
every success story, there are other stories, of men
and women who wake up with the anguish of not knowing where
their next paycheck will come from; who send out resumes week
after week and hear nothing in response. That is why jobs must be our
number one focus in 2010, and that's why I'm calling
for a new jobs bill tonight. (cheers and applause) Now, the true engine of job
creation in this country will always be America's businesses. (cheers and applause) I agree. (applause) Absolutely. (applause) But government can create
the conditions necessary for businesses to expand
and hire more workers. We should start where
most new jobs do -- in small businesses,
companies that begin when -- (applause) -- companies that begin
when an entrepreneur -- when an entrepreneur
takes a chance on a dream, or a worker decides its
time she became her own boss. Through sheer grit
and determination, these companies have weathered
the recession and are ready to grow. But when you talk to small
business owners in places like Allentown, Pennsylvania
or Elyria, Ohio, you find out that even though
banks on Wall Street are lending again, they're mostly
lending to bigger companies. Financing remains difficult for
small business owners across the country -- even those
that are making a profit. So tonight, I'm proposing that
we take $30 billion of the money Wall Street banks have repaid
and use it to help community banks give small businesses the
credit they need to stay afloat. (cheers and applause) I'm also proposing a new
small business tax credit -- one that will go to over one
million small businesses who hire new workers or raise wages. (applause) While we're at it, let's also
eliminate all capital gains taxes on small
business investment; and provide a tax incentive
for all large businesses, and all small businesses,
to invest in new plants and equipment. (applause) Next, we can put Americans
to work today building the infrastructure of tomorrow. (applause) From -- from the first railroads
to the interstate highway system, our nation has
always been built to compete. There's no reason Europe or
China should have the fastest trains, or the new factories
that manufacture clean energy products. Tomorrow, I'll visit
Tampa, Florida, where workers will soon break
ground on a new high-speed railroad funded by
the Recovery Act. There are projects like that all
across this country that will create jobs and help move
our nation's goods, services, and information. (applause) We should put more Americans
to work building clean energy facilities, and give -- (applause) -- and give rebates to Americans
who make their homes more energy efficient, which supports
clean energy jobs. (applause) And to encourage these and other
businesses to stay within our borders, it is time to finally
slash the tax breaks for companies that ship our jobs
overseas and give those tax breaks to companies that create
jobs right here in the United States of America. (applause) Now, the House has passed a jobs
bill that includes some of these steps. (cheers and applause) As the first order of
business this year, I urge the Senate to do the
same and I know they will. (cheers and applause) They will. (applause) People are out of work. They're hurting. They need our help. And I want a jobs bill
on my desk without delay. (applause) But -- (applause) But the truth is, these steps
won't make up for the seven million jobs that we've lost
over the last two years. The only way to move to full
employment is to lay a new foundation for long-term
economic growth, and finally address the problems
that America's families have confronted for years. We can't afford another
so-called economic "expansion" like the one from last
decade -- what some call the "lost decade" -- where jobs grew
more slowly than during any prior expansion; where the
income of the average American household declined while
the cost of health care and tuition reached record highs;
where prosperity was built on a housing bubble and
financial speculation. From the day I took office, I've
been told that addressing our larger challenges
is too ambitious -- such an effort would
be too contentious; I've been told that our
political system is too gridlocked, and that we
should just put things on hold for awhile. For those who make these claims,
I have one simple question: How long should we wait? How long should America
put its future on hold? You see -- (applause) You see, Washington has been
telling us to wait for decades, even as the problems
have grown worse. Meanwhile, China's not
waiting to revamp its economy. Germany is not waiting. India's not waiting. These nations -- they're
not standing still. These nations aren't
playing for second place. They're putting more
emphasis on math and science. They're rebuilding
their infrastructure. They're making serious
investments in clean energy because they want those jobs. Well, I do not accept
second-place for the United States of America. (cheers and applause) As hard as it may be, as
uncomfortable and contentious as the debates may become, it's
time to get serious about fixing the problems that are
hampering our growth. Now, one place to start is
serious financial reform. Look, I am not interested
in punishing banks; I'm interested in
protecting our economy. A strong, healthy financial
market makes it possible for businesses to access
credit and create new jobs. It channels the savings of
families into investments that raise incomes. But that can only happen if
we guard against the same recklessness that nearly
brought down our entire economy. We need to make sure consumers
and middle-class families have the information they need
to make financial decisions. We can't allow
financial institutions, including those that
take your deposits, to take risks that
threaten the whole economy. Now, the House has already
passed financial reform with many of these changes. And -- (applause) And the lobbyists are
already trying to kill it. Well, we cannot let
them win this fight. And if the bill that ends up on
my desk does not meet the test of real reform, I will send
it back until we get it right. We've got to get it right. (applause) Next, we need to encourage
American innovation. Last year, we made the largest
investment in basic research funding in history
-- an investment -- (applause) -- an investment that could lead
to the world's cheapest solar cells or treatment that kills
cancer cells but leaves healthy ones untouched. And no area is more ripe for
such innovation than energy. You can see the results of
last year's investments in clean energy -- in the North Carolina
company that will create 1,200 jobs nationwide helping to
make advanced batteries; or in the California business
that will put 1,000 people to work making solar panels. But to create more of
these clean energy jobs, we need more production, more
efficiency, more incentives. And that means building
a new generation of safe, clean nuclear power
plants in this country. (cheers and applause) It means making tough decisions
about opening new offshore areas for oil and gas development. (cheers and applause) It means continued investment in
advanced biofuels and clean coal technologies. (applause) And yes, it means passing a
comprehensive energy and climate bill with incentives that will
finally make clean energy the profitable kind of
energy in America. (cheers and applause) I am grateful to the House for
passing such a bill last year. And this year -- (cheers) -- this year, I'm eager to help
advance the bipartisan effort in the Senate. (applause) I know there have been questions
about whether we can afford such changes in a tough economy;
I know that there are those who disagree with the overwhelming
scientific evidence on climate change. (audience murmurs) But -- (audience murmurs) But -- here's the thing: even
if you doubt the evidence, providing incentives for energy
efficiency and clean energy are the right thing to
do for our future -- because the nation that leads
the clean energy economy will be the nation that leads
the global economy. And America must be that nation. (applause) Third, we need to export
more of our goods. (applause) Because the more products
we make and sell to other countries, the more jobs we
support right here in America. So -- (applause) So tonight, we set a new goal:
We will double our exports over the next five years, an increase
that will support two million jobs in America. (applause) To help meet this goal, we're
launching a National Export Initiative that will help
farmers and small businesses increase their exports,
and reform export controls consistent with
national security. (applause) We have to seek new
markets aggressively, just as our competitors are. If America sits on the sidelines
while other nations sign trade deals, we will lose the chance
to create jobs on our shores. (cheers and applause) But realizing those benefits
also means enforcing those agreements so our trading
partners play by the rules. (applause) And that's why we'll continue
to shape a Doha trade agreement that opens global markets, and
why we will strengthen our trade relations in Asia and with
key partners like South Korea, and Panama, and Colombia. (cheers and applause) Fourth, we need to invest in
the skills and education of our people. Now, this year -- (applause) This year, we've broken through
the stalemate between left and right by launching a national
competition to improve our schools. And the idea here is simple:
instead of rewarding failure, we only reward success. Instead of funding the status
quo, we only invest in reform -- reform that raises
student achievement, inspires students to
excel in math and science, and turns around failing schools
that steal the future of too many young Americans, from rural
communities to the inner-city. In the 21st century, the best
anti-poverty program around is a world-class education. (applause) And in this country, the success
of our children cannot depend more on where they live
than on their potential. When we renew the Elementary
and Secondary Education Act, we will work with Congress to
expand these reforms to all 50 states. Still, in this economy, a
high school diploma no longer guarantees a good job. That's why I urge the Senate to
follow the House and pass a bill that will revitalize
our community colleges, which are a career pathway to
the children of so many working families. (applause) To make college more affordable,
this bill will finally end the unwarranted taxpayer-subsidies
that go to banks for student loans. Instead, let's take that money
and give families a $10,000 tax credit for four years of college
and increase Pell Grants. (applause) And let's tell another one
million students that when they graduate, they will be required
to pay only 10% of their income on student loans, and all of
their debt will be forgiven after 20 years -- and forgiven
after 10 years if they choose a career in public service. Because in the United
States of America, no one should go broke because
they chose to go to college. (applause) And, by the way, it's time for
colleges and universities to get serious about cutting
their own costs -- because they too have a
responsibility to help solve this problem. Now, the price of college
tuition is just one of the burdens facing the middle-class. That's why last year I asked
Vice President Biden to chair a task force on
Middle-Class Families. That's why we're nearly doubling
the child care tax credit, and making it easier to save for
retirement by giving access to every worker a retirement
account and expanding the tax credit for those who
start a nest egg. That's why we're working to lift
the value of a family's single largest investment
-- their home. The steps we took last year to
shore up the housing market have allowed millions of Americans to
take out new loans and save an average of $1,500 on
mortgage payments. This year, we will step up
re-financing so that homeowners can move into more
affordable mortgages. And -- (applause) And it is precisely to relieve
the burden on middle-class families that we still need
health insurance reform. (applause) Yes we do. (cheers and applause) Now, let's clear
a few things up -- (laughter and applause) I didn't choose to tackle this
issue to get some legislative victory under my belt. And by now it should be fairly
obvious that I didn't take on health care because
it was good politics. (laughter) I took on health care because
of the stories I've heard from Americans with pre-existing
conditions whose lives depend on getting coverage; patients
who've been denied coverage; families -- even those
with insurance -- who are just one illness
away from financial ruin. After nearly a
century of trying -- Democratic administrations,
Republican administrations -- we are closer than ever to
bringing more security to the lives of so many Americans. The approach we've taken would
protect every American from the worst practices of the
insurance industry. It would give small businesses
and uninsured Americans a chance to choose an affordable health
care plan in a competitive market. It would require every insurance
plan to cover preventive care. And by the way, I want to
acknowledge our First Lady, Michelle Obama, who this year is
creating a national movement to tackle the epidemic of childhood
obesity and make kids healthier. Thank you, Hon. (cheers and applause) She gets embarrassed. (laughter) Our approach would preserve
the right of Americans who have insurance to keep their
doctor and their plan. It would reduce costs and
premiums for millions of families and businesses. And according to the
Congressional Budget Office -- the independent organization
that both parties have cited as the official scorekeeper
for Congress -- our approach would bring down
the deficit by as much as $1 trillion over the
next two decades. (applause) Still, this is a complex issue,
and the longer it was debated, the more skeptical
people became. I take my share of the blame for
not explaining it more clearly to the American people. And I know that with all the
lobbying and horse-trading, the process left most Americans
wondering, what's in it for me? But I also know this
problem is not going away. By the time I'm finished
speaking tonight, more Americans will have
lost their health insurance. Millions will lose it this year. Our deficit will grow. Premiums will go up. Patients will be denied
the care they need. Small business owners will
continue to drop coverage altogether. I will not walk away
from these Americans, and neither should the
people in this chamber. (cheers and applause) So, as temperatures cool, I want
everyone to take another look at the plan we've proposed. There's a reason why
many doctors, nurses, and health care experts who know
our system best consider this approach a vast improvement
over the status quo. But if anyone from either party
has a better approach that will bring down premiums,
bring down the deficit, cover the uninsured, strengthen
Medicare for seniors, and stop insurance company
abuses, let me know. (cheers and applause) Let me know. (cheers and applause) Let me know. (applause) I'm eager to see it. Here's what I ask Congress,
though: Don't walk away from reform. Not now. Not when we are so close. Let us find a way to come
together and finish the job for the American people. (applause) Let's get it done. (applause) Let's get it done. (applause) Now, even as health care reform
would reduce our deficit, it's not enough to dig us out of
a massive fiscal hole in which we find ourselves. It's a challenge that makes
all others that much harder to solve, and one that's been
subject to a lot of political posturing. So let me start the discussion
of government spending by setting the record straight. At the beginning of the last decade --
the year 2000 -- America had a budget surplus
of over $200 billion. (applause) By -- (applause) By the time I took office, we
had a one year deficit of over $1 trillion and projected
deficits of $8 trillion over the next decade. Most of this was the result
of not paying for two wars, two tax cuts, and an expensive
prescription drug program. On top of that, the effects of
the recession put a $3 trillion hole in our budget. All this was before
I walked in the door. (laughter) Now -- (cheers and applause) Now -- just stating the facts. Now, if we had taken
office in ordinary times, I would have liked nothing more
than to start bringing down the deficit. But we took office
amid a crisis, and our efforts to prevent a
second Depression have added another $1 trillion
to our national debt. That, too, is a fact. I'm absolutely convinced that
was the right thing to do. But families across the country
are tightening their belts and making tough decisions. The federal government
should do the same. (cheers and applause) So tonight, I'm proposing
specific steps to pay for the $1 trillion that it took to
rescue the economy last year. Starting in 2011, we are
prepared to freeze government spending for three years. (applause) Spending related to our national
security, Medicare, Medicaid, and Social Security
will not be affected. But all other discretionary
government programs will. Like any cash-strapped family,
we will work within a budget to invest in what we need and
sacrifice what we don't. And if I have to enforce this
discipline by veto, I will. (applause) We will continue to go through
the budget line by line, page by page, to eliminate
programs that we can't afford and don't work. We've already identified $20
billion in savings for next year. To help working families, we'll
extend our middle-class tax cuts. But at a time of
record deficits, we will not continue tax
cuts for oil companies, for investment fund managers,
and for those making over $250,000 a year. We just can't afford it. (applause) Now, even after paying for
what we spent on my watch, we'll still face the massive
deficit we had when I took office. More importantly, the cost
of Medicare, Medicaid, and Social Security will
continue to skyrocket. That's why I've called for a
bipartisan, Fiscal Commission, modeled on a proposal by
Republican Judd Gregg and Democrat Kent Conrad. (applause) This can't be one of those
Washington gimmicks that lets us pretend we solve a problem. The Commission will have to
provide a specific set of solutions by a certain deadline. Now, yesterday, the Senate
blocked a bill that would have created this commission. So I'll issue an executive
order that will allow us to go forward, because I refuse to
pass this problem on to another generation of Americans. (cheers and applause) And when the vote
comes tomorrow, the Senate should restore the
pay-as-you-go law that was a big reason for why we had record
surpluses in the 1990s. (cheers and applause) Now, I know that some in my own
party will argue that we can't address the deficit or freeze
government spending when so many are still hurting. And I agree, which is why this
freeze won't take effect until next year, when the
economy is stronger. (laughter) That's how budgeting works. (laughter and applause) But understand -- understand,
if we don't take meaningful steps to rein in our debt, it
could damage our markets, increase the cost of borrowing,
and jeopardize our recovery -- all of which could have an even
worse effect on our job growth and family incomes. From some on the right, I expect
we'll hear a different argument -- that if we just make fewer
investments in our people, extend tax cuts --
including those for the wealthier Americans -- eliminate
more regulations, maintain the status
quo on health care, our deficits will go away. The problem is, that's what
we did for eight years. (laughter and applause) That's what helped
us into this crisis; it's what helped lead
to these deficits. We can't do it again. Rather than fight the same tired
battles that have dominated Washington for decades, it's
time to try something new. Let's invest in our people
without leaving them a mountain of debt. Let's meet our responsibility to
the citizens who sent us here. Let's try common sense. (laughter) A novel concept. (laughter) Now, to do that, we have to
recognize that we face more than a deficit of dollars right now. We face a deficit of trust --
deep and corrosive doubts about how Washington works that
have been growing for years. To close that credibility gap,
we have to take action on both ends of Pennsylvania Avenue
to end the outsized influence of lobbyists; to do
our work openly; to give our people the government they deserve. (applause) Now -- (applause) That's what I came
to Washington to do. That's why -- for the
first time in history -- my Administration posts on --
our White House visitors online. That's why we've excluded
lobbyists from policy-making jobs or seats on federal
boards and commissions. (audience murmurs) But we can't stop there. It's time to require lobbyists
to disclose each contact they make on behalf of a client
with my Administration or with Congress. It's time to put strict limits
on the contributions that lobbyists give to candidates
for federal office. With all due deference to
separation of powers, last week, the Supreme Court
reversed a century of law that I believe will open the floodgates
for special interests -- including foreign
corporations -- to spend without limit
in our elections. (applause) I don't think American elections
should be bankrolled by America's most powerful
interests, or worse, by foreign entities. They should be decided
by the American people, and I'd urge Democrats and
Republicans to pass a bill that helps correct some
of these problems. I'm also calling on Congress
to continue down the path of earmark reform. (applause) Democrats and Republicans. (applause) Democrats and Republicans. Look, you've trimmed
some of this spending; you've embraced some
meaningful change. But restoring the public
trust demands more. For example, some members of
Congress post some earmark requests online. Tonight, I'm calling on Congress
to publish all earmark requests on a single website before
there's a vote so that the American people can see how
their money's being spent. (applause) Of course, none of these reforms
will even happen if we don't also reform how we
work with one another. Now, I'm not naïve. I never thought that the mere
fact of my election would usher in peace and harmony, and
some post-partisan era. I knew that both parties have
fed divisions that are deeply entrenched. And on some issues, there are
simply philosophical differences that will always
cause us to part ways. These disagreements, about the
role of government in our lives, about our national priorities
and our national security -- they've been taking
place for over 200 years. They're the very essence
of our democracy. But what frustrates the American
people is a Washington where every day is Election Day. We can't wage a perpetual
campaign where the only goal is to see who can get the most
embarrassing headlines about the other side -- a belief
that if you lose, I win. Neither party should delay or
obstruct every single bill just because they can. The confirmation of -- (applause) I'm speaking to
both parties, now. The confirmation of well-qualified public servants shouldn't be held hostage to
the pet projects or grudges of a few individual Senators. (applause) Washington may think that saying
anything about the other side, no matter how false, no matter
how malicious is just part of the game. But it's precisely such politics
that has stopped either party from helping the
American people. Worse yet -- (applause) Worse yet, it's sowing further
division among our citizens; further distrust
in our government. So no, I will not give up on trying
to change the tone of our politics. I know it's an election year. And after last week, it's clear
that campaign fever has come even earlier than usual. But we still need to govern. To Democrats, I would remind you
that we still have the largest majority in decades, and the
people expect us to solve problems, not run for the hills. (applause) And if the Republican leadership
is going to insist that -- that 60 votes in the Senate are
required to do any business at all in this town --
a supermajority -- then the responsibility to
govern is now yours as well. Just saying no to everything
may be good short-term politics, but it's not leadership. We were sent here to serve our
citizens, not our ambitions. (cheers and applause) So let's show the American
people that we can do it together. This week -- (applause) This week, I'll be meet --
addressing a meeting of the House Republicans. I'd like to begin monthly meetings
with both Democratic and Republican leadership. I know you can't wait. (laughter) You know, throughout
our history, no issue has united this
country more than our security. Sadly, some of the unity we
felt after 9/11 has dissipated. Now, we can argue all we want
about who's to blame for this, but I'm not interested
in re-litigating the past. I know that all of
us love this country. All of us are committed
to its defense. So let's put aside the
schoolyard taunts about who's tough. Let's reject the false choice
between protecting our people and upholding our values. Let's leave behind
the fear and division, and do what it takes to defend
our nation and forge a more hopeful future -- for
America and for the world. (applause) That's the work we
began last year. Since the day I took office,
we've renewed our focus on the terrorists who
threaten our nation. We've made substantial
investments in our homeland security and disrupted plots
that threatened to take American lives. We are filling unacceptable gaps
revealed by the failed Christmas attack, with better
airline security, and swifter action
on our intelligence. We've prohibited torture and
strengthened partnerships from the Pacific to South Asia
to the Arabian Peninsula. And in the last year, hundreds
of Al Qaeda's fighters and affiliates, including
many senior leaders, have been captured or killed
-- far more than in 2008. And in Afghanistan,
we're increasing our troops and training Afghan Security Forces
so they can begin to take the lead in July of 2011,
and our troops can begin to come home. (applause) We will reward good governance,
work to reduce corruption, and support the rights of all Afghans --
men and women alike. (applause) We're joined by allies and
partners who have increased their own commitments, and who
will come together tomorrow in London to reaffirm
our common purpose. There will be
difficult days ahead. But I am absolutely
confident we will succeed. As we take the
fight to al Qaeda, we are responsibly leaving
Iraq to its people. As a candidate, I promised
that I would end this war, and that is what I am
doing as President. We will have all of our combat
troops out of Iraq by the end of this August. We will support -- (applause) We will support the
Iraqi government -- (applause) We will support the Iraqi
government as they hold elections, and we will
continue to partner with the Iraqi people to promote regional
peace and prosperity. But make no mistake:
this war is ending, and all of our troops
are coming home. (applause) Tonight, all of our men
and women in uniform -- in Iraq, in Afghanistan,
and around the world -- they have to know that we
-- that they have our respect, our gratitude,
our full support. And just as they must have the
resources they need in war, we all have a responsibility
to support them when they come home. (cheers and applause) That's why we made the largest
increase in investments for veterans in decades. (cheers and applause) Last year. (applause) That's why we're building
a 21st century VA. And that's why Michelle has
joined with Jill Biden to forge a national commitment to
support military families. (applause) Now, even as we
prosecute two wars, we're also confronting perhaps
the greatest danger to the American people -- the
threat of nuclear weapons. I've embraced the vision of
John F. Kennedy and Ronald Reagan through a strategy that
reverses the spread of these weapons, and seeks a world without them. To reduce our stockpiles
and launchers, while ensuring our deterrent,
the United States and Russia are completing negotiations on
the farthest-reachings -- arms control treaty
in nearly two decades. (applause) And at April's Nuclear
Security Summit, we will bring 44
nations together here in Washington, D.C.
behind a clear goal: securing all vulnerable nuclear
materials around the world in four years, so that they
never fall into the hands of terrorists. (applause) Now, these diplomatic efforts
have also strengthened our hand in dealing with those nations
that insist on violating international agreements in
pursuit of nuclear weapons. That's why North Korea now
faces increased isolation, and stronger sanctions --
sanctions that are being vigorously enforced. That's why the international
community is more united, and the Islamic Republic
of Iran is more isolated. And as Iran's leaders continue
to ignore their obligations, there should be no
doubt: they, too, will face growing consequences. That is a promise. (applause) That's the leadership
we are providing -- engagement that advances the
common security and prosperity of all people. We're working through the G-20
to sustain a lasting global recovery. We're working with Muslim
communities around the world to promote science and
education and innovation. We have gone from a bystander
to a leader in the fight against climate change. We're helping developing
countries to feed themselves, and continuing the
fight against HIV/AIDS. And we are launching a new
initiative that will give us the capacity to respond faster
and more effectively to bio-terrorism or an
infectious disease -- a plan that will
counter threats at home, and strengthen
public health abroad. As we have for over 60 years,
America takes these actions because our destiny is connected
to those beyond our shores. But we also do it
because it is right. That's why, as we
meet here tonight, over 10,000 Americans are
working with many nations to help the people of Haiti
recover and rebuild. (applause) That's why we stand with the
girl who yearns to go to school in Afghanistan; why we support
the human rights of the women marching through
the streets of Iran; why we advocate for the young
man denied a job by corruption in Guinea. For America must always stand
on the side of freedom and human dignity. (applause) Always. (applause) Abroad, America's greatest
source of strength has always been our ideals. The same is true at home. We find unity in our
incredible diversity, drawing on the promise enshrined
in our Constitution: the notion that we're all created equal,
that no matter who you are or what you look like, if you
abide by the law you should be protected by it; if you adhere
to our common values you should be treated no different
than anyone else. We must continually
renew this promise. My Administration has a Civil
Rights Division that is once again prosecuting civil rights
violations and employment discrimination. We finally strengthened -- (applause) We finally strengthened our laws
to protect against crimes driven by hate. This year -- (applause) This year, I will work with
Congress and our military to finally repeal the law that
denies gay Americans the right to serve the country they
love because of who they are. (cheers and applause) It's the right thing to do. (applause) We're going to crack down on
violations of equal pay laws -- so that women get equal pay
for an equal day's work. (applause) And we should continue the work
of fixing our broken immigration system -- to secure our
borders, and enforce our laws, and ensure that everyone
who plays by the rules can contribute to our economy
and enrich our nations. (applause) In the end, it's our ideals, our
values, that built America -- values that allowed us to forge
a nation made up of immigrants from every corner of the globe;
values that drive our citizens still. Every day, Americans meet
their responsibilities to their families and their employers. Time and again, they lend a hand
to their neighbors and give back to their country. They take pride in their labor,
and are generous in spirit. These aren't Republican values
or Democratic values that they're living by; business
values or labor values. They're American values. Unfortunately, too many of our
citizens have lost faith that our biggest institutions --
our corporations, our media, and yes, our government --
still reflect these same values. Each of these institutions are
full of honorable men and women doing important work that
helps our country prosper. But each time a CEO rewards
himself for failure, or a banker puts the rest of
us at risk for his own selfish gain, people's doubts grow. Each time lobbyists game the
system or politicians tear each other down instead of lifting
this country up, we lose faith. The more that TV pundits
reduce serious debates to silly arguments, big issues into sound
bites, our citizens turn away. No wonder there's so
much cynicism out there. No wonder there's so
much disappointment. I campaigned on the
promise of change -- change we can believe
in, the slogan went. And right now, I know there are
many Americans who aren't sure if they still believe
we can change -- or that I can deliver. But remember this --
I never suggested that change would be easy, or that I
could do it alone. Democracy in a nation of 300
million people can be noisy and messy and complicated. And when you try to do big
things and make big changes, it stirs passions
and controversy. That's just how it is. Those of us in public office
can respond to this reality by playing it safe and avoid
telling hard truths and pointing fingers. We can do what's necessary to
keep our poll numbers high, and get through the next
election instead of doing what's best for the next generation. But I also know this: if people
had made that decision 50 years ago or 100 years ago
or 200 years ago, we wouldn't be here tonight. The only reason we are here is
because generations of Americans were unafraid to
do what was hard; to do what was needed even
when success was uncertain; to do what it took to keep the
dream of this nation alive for their children and
their grandchildren. Now, our administration has had
some political setbacks this year, and some of
them were deserved. But I wake up every day knowing
that they are nothing compared to the setbacks that families
all across this country have faced this year. And what keeps me going --
what keeps me fighting -- is that despite
all these setbacks, that spirit of determination
and optimism -- that fundamental decency that
has always been at the core of the American people
-- that lives on. It lives on in the struggling
small business owner who wrote to me of his company,
"None of us," he said, "are willing to consider, even
slightly, that we might fail." It lives on in the woman who
said that even though she and her neighbors have felt the pain
of recession, "We are strong. We are resilient. We are American." It lives on in the
8-year-old boy in Louisiana, who just sent me his allowance
and asked if I would give it to the people of Haiti. And it lives on in all the
Americans who've dropped everything to go some place
they've never been and pull people they've never
known from the rubble, prompting chants of
"U.S.A.! U.S.A.! U.S.A.!" when another life was saved. The spirit that has sustained
this nation for more than two centuries lives on
in you, its people. We have finished
a difficult year. We have come through
a difficult decade. But a new year has come. A new decade
stretches before us. We don't quit. I don't quit. Let's seize this moment
-- to start anew, to carry the dream forward,
and to strengthen our union once more. Thank you. God Bless you. And God Bless the United
States of America. (cheers and applause)
