President Obama's 2010 State of the Union Address

January 27, 2010

Nauam Speakei, vice Piesiuent Biuen, membeis of Congiess, uistinguisheu guests, anu fellow
Ameiicans:

0ui Constitution ueclaies that fiom time to time, the Piesiuent shall give to Congiess infoimation
about the state of oui union. Foi 22u yeais, oui leaueis have fulfilleu this uuty. They've uone so
uuiing peiious of piospeiity anu tianquility. Anu they've uone so in the miust of wai anu
uepiession; at moments of gieat stiife anu gieat stiuggle.

It's tempting to look back on these moments anu assume that oui piogiess was inevitable -- that
Ameiica was always uestineu to succeeu. But when the 0nion was tuineu back at Bull Run, anu
the Allies fiist lanueu at 0maha Beach, victoiy was veiy much in uoubt. When the maiket ciasheu
on Black Tuesuay, anu civil iights maicheis weie beaten on Bloouy Sunuay, the futuie was
anything but ceitain. These weie the times that testeu the couiage of oui convictions, anu the
stiength of oui union. Anu uespite all oui uivisions anu uisagieements, oui hesitations anu oui
feais, Ameiica pievaileu because we chose to move foiwaiu as one nation, as one people.

Again, we aie testeu. Anu again, we must answei histoiy's call.

0ne yeai ago, I took office amiu two wais, an economy iockeu by a seveie iecession, a financial
system on the veige of collapse, anu a goveinment ueeply in uebt. Expeits fiom acioss the
political spectium waineu that if we uiu not act, we might face a seconu uepiession. So we acteu -
- immeuiately anu aggiessively. Anu one yeai latei, the woist of the stoim has passeu.

But the uevastation iemains. 0ne in 1u Ameiicans still cannot finu woik. Nany businesses have
shutteieu. Bome values have ueclineu. Small towns anu iuial communities have been hit
especially haiu. Anu foi those who'u alieauy known poveity, life has become that much haiuei.

This iecession has also compounueu the buiuens that Ameiica's families have been uealing with
foi uecaues -- the buiuen of woiking haiuei anu longei foi less; of being unable to save enough to
ietiie oi help kius with college.

So I know the anxieties that aie out theie iight now. They'ie not new. These stiuggles aie the
ieason I ian foi Piesiuent. These stiuggles aie what I've witnesseu foi yeais in places like Elkhait,
Inuiana; ualesbuig, Illinois. I heai about them in the letteis that I ieau each night. The toughest to
ieau aie those wiitten by chiluien -- asking why they have to move fiom theii home, asking when
theii mom oi uau will be able to go back to woik.

Foi these Ameiicans anu so many otheis, change has not come fast enough. Some aie fiustiateu;
some aie angiy. They uon't unueistanu why it seems like bau behavioi on Wall Stieet is
iewaiueu, but haiu woik on Nain Stieet isn't; oi why Washington has been unable oi unwilling to
solve any of oui pioblems. They'ie tiieu of the paitisanship anu the shouting anu the pettiness.
They know we can't affoiu it. Not now.

So we face big anu uifficult challenges. Anu what the Ameiican people hope -- what they ueseive -
- is foi all of us, Bemociats anu Republicans, to woik thiough oui uiffeiences; to oveicome the
numbing weight of oui politics. Foi while the people who sent us heie have uiffeient
backgiounus, uiffeient stoiies, uiffeient beliefs, the anxieties they face aie the same. The
aspiiations they holu aie shaieu: a job that pays the bills; a chance to get aheau; most of all, the
ability to give theii chiluien a bettei life.

You know what else they shaie. They shaie a stubboin iesilience in the face of auveisity. Aftei
one of the most uifficult yeais in oui histoiy, they iemain busy builuing cais anu teaching kius,
staiting businesses anu going back to school. They'ie coaching Little League anu helping theii
neighbois. 0ne woman wiote to me anu saiu, "We aie stiaineu but hopeful, stiuggling but
encouiageu."

It's because of this spiiit -- this gieat uecency anu gieat stiength -- that I have nevei been moie
hopeful about Ameiica's futuie than I am tonight. (Applause.) Bespite oui haiuships, oui union is
stiong. We uo not give up. We uo not quit. We uo not allow feai oi uivision to bieak oui spiiit. In
this new uecaue, it's time the Ameiican people get a goveinment that matches theii uecency; that
embouies theii stiength. (Applause.)
Anu tonight, tonight I'u like to talk about how togethei we can uelivei on that piomise.

It begins with oui economy.

0ui most uigent task upon taking office was to shoie up the same banks that helpeu cause this
ciisis. It was not easy to uo. Anu if theie's one thing that has unifieu Bemociats anu Republicans,
anu eveiybouy in between, it's that we all hateu the bank bailout. I hateu it -- (applause.) I hateu
it. You hateu it. It was about as populai as a ioot canal. (Laughtei.)

But when I ian foi Piesiuent, I piomiseu I woulun't just uo what was populai -- I woulu uo what
was necessaiy. Anu if we hau alloweu the meltuown of the financial system, unemployment might
be uouble what it is touay. Noie businesses woulu ceitainly have closeu. Noie homes woulu have
suiely been lost.

So I suppoiteu the last auministiation's effoits to cieate the financial iescue piogiam. Anu when
we took that piogiam ovei, we maue it moie tianspaient anu moie accountable. Anu as a iesult,
the maikets aie now stabilizeu, anu we've iecoveieu most of the money we spent on the banks.
(Applause.) Nost but not all.

To iecovei the iest, I've pioposeu a fee on the biggest banks. (Applause.) Now, I know Wall Stieet
isn't keen on this iuea. But if these fiims can affoiu to hanu out big bonuses again, they can affoiu
a mouest fee to pay back the taxpayeis who iescueu them in theii time of neeu. (Applause.)

Now, as we stabilizeu the financial system, we also took steps to get oui economy giowing again,
save as many jobs as possible, anu help Ameiicans who hau become unemployeu.

That's why we extenueu oi incieaseu unemployment benefits foi moie than 18 million Ameiicans;
maue health insuiance 6S peicent cheapei foi families who get theii coveiage thiough C0BRA;
anu passeu 2S uiffeient tax cuts.

Now, let me iepeat: We cut taxes. We cut taxes foi 9S peicent of woiking families. (Applause.)
We cut taxes foi small businesses. We cut taxes foi fiist-time homebuyeis. We cut taxes foi
paients tiying to caie foi theii chiluien. We cut taxes foi 8 million Ameiicans paying foi college.
(Applause.)

I thought I'u get some applause on that one. (Laughtei anu applause.)

As a iesult, millions of Ameiicans hau moie to spenu on gas anu foou anu othei necessities, all of
which helpeu businesses keep moie woikeis. Anu we haven't iaiseu income taxes by a single
uime on a single peison. Not a single uime. (Applause.)

Because of the steps we took, theie aie about two million Ameiicans woiking iight now who
woulu otheiwise be unemployeu. (Applause.) Two hunuieu thousanu woik in constiuction anu
clean eneigy; Suu,uuu aie teacheis anu othei euucation woikeis. Tens of thousanus aie cops,
fiiefighteis, coiiectional officeis, fiist iesponueis. (Applause.) Anu we'ie on tiack to auu anothei
one anu a half million jobs to this total by the enu of the yeai.

The plan that has maue all of this possible, fiom the tax cuts to the jobs, is the Recoveiy Act.
(Applause.) That's iight -- the Recoveiy Act, also known as the stimulus bill. (Applause.)
Economists on the left anu the iight say this bill has helpeu save jobs anu aveit uisastei. But you
uon't have to take theii woiu foi it. Talk to the small business in Phoenix that will tiiple its
woikfoice because of the Recoveiy Act. Talk to the winuow manufactuiei in Philauelphia who
saiu he useu to be skeptical about the Recoveiy Act, until he hau to auu two moie woik shifts just
because of the business it cieateu. Talk to the single teachei iaising two kius who was tolu by hei
piincipal in the last week of school that because of the Recoveiy Act, she woulun't be laiu off aftei
all.

Theie aie stoiies like this all acioss Ameiica. Anu aftei two yeais of iecession, the economy is
giowing again. Retiiement funus have staiteu to gain back some of theii value. Businesses aie
beginning to invest again, anu slowly some aie staiting to hiie again.

But I iealize that foi eveiy success stoiy, theie aie othei stoiies, of men anu women who wake up
with the anguish of not knowing wheie theii next paycheck will come fiom; who senu out iesumes
week aftei week anu heai nothing in iesponse. That is why jobs must be oui numbei-one focus in
2u1u, anu that's why I'm calling foi a new jobs bill tonight. (Applause.)

Now, the tiue engine of job cieation in this countiy will always be Ameiica's businesses.
(Applause.) But goveinment can cieate the conuitions necessaiy foi businesses to expanu anu
hiie moie woikeis.

We shoulu stait wheie most new jobs uo -- in small businesses, companies that begin when --
(applause) -- companies that begin when an entiepieneui -- when an entiepieneui takes a chance
on a uieam, oi a woikei ueciues it's time she became hei own boss. Thiough sheei giit anu
ueteimination, these companies have weatheieu the iecession anu they'ie ieauy to giow. But
when you talk to small businessowneis in places like Allentown, Pennsylvania, oi Elyiia, 0hio, you
finu out that even though banks on Wall Stieet aie lenuing again, they'ie mostly lenuing to biggei
companies. Financing iemains uifficult foi small businessowneis acioss the countiy, even those
that aie making a piofit.

So tonight, I'm pioposing that we take $Su billion of the money Wall Stieet banks have iepaiu anu
use it to help community banks give small businesses the cieuit they neeu to stay afloat.
(Applause.) I'm also pioposing a new small business tax cieuit
-- one that will go to ovei one million small businesses who hiie new woikeis oi iaise wages.
(Applause.) While we'ie at it, let's also eliminate all capital gains taxes on small business
investment, anu pioviue a tax incentive foi all laige businesses anu all small businesses to invest
in new plants anu equipment. (Applause.)

Next, we can put Ameiicans to woik touay builuing the infiastiuctuie of tomoiiow. (Applause.)
Fiom the fiist iailioaus to the Inteistate Bighway System, oui nation has always been built to
compete. Theie's no ieason Euiope oi China shoulu have the fastest tiains, oi the new factoiies
that manufactuie clean eneigy piouucts.

Tomoiiow, I'll visit Tampa, Floiiua, wheie woikeis will soon bieak giounu on a new high-speeu
iailioau funueu by the Recoveiy Act. (Applause.) Theie aie piojects like that all acioss this
countiy that will cieate jobs anu help move oui nation's goous, seivices, anu infoimation.
(Applause.)

We shoulu put moie Ameiicans to woik builuing clean eneigy facilities -- (applause) -- anu give
iebates to Ameiicans who make theii homes moie eneigy-efficient, which suppoits clean eneigy
jobs. (Applause.) Anu to encouiage these anu othei businesses to stay within oui boiueis, it is
time to finally slash the tax bieaks foi companies that ship oui jobs oveiseas, anu give those tax
bieaks to companies that cieate jobs iight heie in the 0niteu States of Ameiica. (Applause.)

Now, the Bouse has passeu a jobs bill that incluues some of these steps. (Applause.) As the fiist
oiuei of business this yeai, I uige the Senate to uo the same, anu I know they will. (Applause.)
They will. (Applause.) People aie out of woik. They'ie huiting. They neeu oui help. Anu I want a
jobs bill on my uesk without uelay. (Applause.)

But the tiuth is, these steps won't make up foi the seven million jobs that we've lost ovei the last
two yeais. The only way to move to full employment is to lay a new founuation foi long-teim
economic giowth, anu finally auuiess the pioblems that Ameiica's families have confionteu foi
yeais.

We can't affoiu anothei so-calleu economic "expansion" like the one fiom the last uecaue -- what
some call the "lost uecaue" -- wheie jobs giew moie slowly than uuiing any piioi expansion;
wheie the income of the aveiage Ameiican householu ueclineu while the cost of health caie anu
tuition ieacheu iecoiu highs; wheie piospeiity was built on a housing bubble anu financial
speculation.

Fiom the uay I took office, I've been tolu that auuiessing oui laigei challenges is too ambitious;
such an effoit woulu be too contentious. I've been tolu that oui political system is too giiulockeu,
anu that we shoulu just put things on holu foi a while.

Foi those who make these claims, I have one simple question: Bow long shoulu we wait. Bow
long shoulu Ameiica put its futuie on holu. (Applause.)

You see, Washington has been telling us to wait foi uecaues, even as the pioblems have giown
woise. Neanwhile, China is not waiting to ievamp its economy. ueimany is not waiting. Inuia is
not waiting. These nations -- they'ie not stanuing still. These nations aien't playing foi seconu
place. They'ie putting moie emphasis on math anu science. They'ie iebuiluing theii
infiastiuctuie. They'ie making seiious investments in clean eneigy because they want those jobs.
Well, I uo not accept seconu place foi the 0niteu States of Ameiica. (Applause.)

As haiu as it may be, as uncomfoitable anu contentious as the uebates may become, it's time to get
seiious about fixing the pioblems that aie hampeiing oui giowth.

Now, one place to stait is seiious financial iefoim. Look, I am not inteiesteu in punishing banks.
I'm inteiesteu in piotecting oui economy. A stiong, healthy financial maiket makes it possible foi
businesses to access cieuit anu cieate new jobs. It channels the savings of families into
investments that iaise incomes. But that can only happen if we guaiu against the same
iecklessness that neaily biought uown oui entiie economy.

We neeu to make suie consumeis anu miuule-class families have the infoimation they neeu to
make financial uecisions. (Applause.) We can't allow financial institutions, incluuing those that
take youi ueposits, to take iisks that thieaten the whole economy.

Now, the Bouse has alieauy passeu financial iefoim with many of these changes. (Applause.) Anu
the lobbyists aie tiying to kill it. But we cannot let them win this fight. (Applause.) Anu if the bill
that enus up on my uesk uoes not meet the test of ieal iefoim, I will senu it back until we get it
iight. We've got to get it iight. (Applause.)

Next, we neeu to encouiage Ameiican innovation. Last yeai, we maue the laigest investment in
basic ieseaich funuing in histoiy -- (applause) -- an investment that coulu leau to the woilu's
cheapest solai cells oi tieatment that kills cancei cells but leaves healthy ones untoucheu. Anu no
aiea is moie iipe foi such innovation than eneigy. You can see the iesults of last yeai's
investments in clean eneigy -- in the Noith Caiolina company that will cieate 1,2uu jobs
nationwiue helping to make auvanceu batteiies; oi in the Califoinia business that will put a
thousanu people to woik making solai panels.

But to cieate moie of these clean eneigy jobs, we neeu moie piouuction, moie efficiency, moie
incentives. Anu that means builuing a new geneiation of safe, clean nucleai powei plants in this
countiy. (Applause.) It means making tough uecisions about opening new offshoie aieas foi oil
anu gas uevelopment. (Applause.) It means continueu investment in auvanceu biofuels anu clean
coal technologies. (Applause.) Anu, yes, it means passing a compiehensive eneigy anu climate bill
with incentives that will finally make clean eneigy the piofitable kinu of eneigy in Ameiica.
(Applause.)

I am giateful to the Bouse foi passing such a bill last yeai. (Applause.) Anu this yeai I'm eagei to
help auvance the bipaitisan effoit in the Senate. (Applause.)

I know theie have been questions about whethei we can affoiu such changes in a tough economy.
I know that theie aie those who uisagiee with the oveiwhelming scientific eviuence on climate
change. But heie's the thing -- even if you uoubt the eviuence, pioviuing incentives foi eneigy-
efficiency anu clean eneigy aie the iight thing to uo foi oui futuie -- because the nation that leaus
the clean eneigy economy will be the nation that leaus the global economy. Anu Ameiica must be
that nation. (Applause.)

Thiiu, we neeu to expoit moie of oui goous. (Applause.) Because the moie piouucts we make
anu sell to othei countiies, the moie jobs we suppoit iight heie in Ameiica. (Applause.) So
tonight, we set a new goal: We will uouble oui expoits ovei the next five yeais, an inciease that
will suppoit two million jobs in Ameiica. (Applause.) To help meet this goal, we'ie launching a
National Expoit Initiative that will help faimeis anu small businesses inciease theii expoits, anu
iefoim expoit contiols consistent with national secuiity. (Applause.)

We have to seek new maikets aggiessively, just as oui competitois aie. If Ameiica sits on the
siuelines while othei nations sign tiaue ueals, we will lose the chance to cieate jobs on oui shoies.
(Applause.) But iealizing those benefits also means enfoicing those agieements so oui tiauing
paitneis play by the iules. (Applause.) Anu that's why we'll continue to shape a Boha tiaue
agieement that opens global maikets, anu why we will stiengthen oui tiaue ielations in Asia anu
with key paitneis like South Koiea anu Panama anu Colombia. (Applause.)

Fouith, we neeu to invest in the skills anu euucation of oui people. (Applause.)

Now, this yeai, we've bioken thiough the stalemate between left anu iight by launching a national
competition to impiove oui schools. Anu the iuea heie is simple: Insteau of iewaiuing failuie, we
only iewaiu success. Insteau of funuing the status quo, we only invest in iefoim -- iefoim that
iaises stuuent achievement; inspiies stuuents to excel in math anu science; anu tuins aiounu
failing schools that steal the futuie of too many young Ameiicans, fiom iuial communities to the
innei city. In the 21st centuiy, the best anti-poveity piogiam aiounu is a woilu-class euucation.
(Applause.) Anu in this countiy, the success of oui chiluien cannot uepenu moie on wheie they
live than on theii potential.

When we ienew the Elementaiy anu Seconuaiy Euucation Act, we will woik with Congiess to
expanu these iefoims to all Su states. Still, in this economy, a high school uiploma no longei
guaiantees a goou job. That's why I uige the Senate to follow the Bouse anu pass a bill that will
ievitalize oui community colleges, which aie a caieei pathway to the chiluien of so many woiking
families. (Applause.)

To make college moie affoiuable, this bill will finally enu the unwaiianteu taxpayei subsiuies that
go to banks foi stuuent loans. (Applause.) Insteau, let's take that money anu give families a
$1u,uuu tax cieuit foi foui yeais of college anu inciease Pell uiants. (Applause.) Anu let's tell
anothei one million stuuents that when they giauuate, they will be iequiieu to pay only 1u
peicent of theii income on stuuent loans, anu all of theii uebt will be foigiven aftei 2u yeais -- anu
foigiven aftei 1u yeais if they choose a caieei in public seivice, because in the 0niteu States of
Ameiica, no one shoulu go bioke because they chose to go to college. (Applause.)

Anu by the way, it's time foi colleges anu univeisities to get seiious about cutting theii own costs -
- (applause) -- because they, too, have a iesponsibility to help solve this pioblem.

Now, the piice of college tuition is just one of the buiuens facing the miuule class. That's why last
yeai I askeu vice Piesiuent Biuen to chaii a task foice on miuule-class families. That's why we'ie
neaily uoubling the chilu caie tax cieuit, anu making it easiei to save foi ietiiement by giving
access to eveiy woikei a ietiiement account anu expanuing the tax cieuit foi those who stait a
nest egg. That's why we'ie woiking to lift the value of a family's single laigest investment -- theii
home. The steps we took last yeai to shoie up the housing maiket have alloweu millions of
Ameiicans to take out new loans anu save an aveiage of $1,Suu on moitgage payments.

This yeai, we will step up iefinancing so that homeowneis can move into moie affoiuable
moitgages. (Applause.) Anu it is piecisely to ielieve the buiuen on miuule-class families that we
still neeu health insuiance iefoim. (Applause.) Yes, we uo. (Applause.)

Now, let's cleai a few things up. (Laughtei.) I uiun't choose to tackle this issue to get some
legislative victoiy unuei my belt. Anu by now it shoulu be faiily obvious that I uiun't take on
health caie because it was goou politics. (Laughtei.) I took on health caie because of the stoiies
I've heaiu fiom Ameiicans with pieexisting conuitions whose lives uepenu on getting coveiage;
patients who've been uenieu coveiage; families -- even those with insuiance -- who aie just one
illness away fiom financial iuin.

Aftei neaily a centuiy of tiying -- Bemociatic auministiations, Republican auministiations -- we
aie closei than evei to biinging moie secuiity to the lives of so many Ameiicans. The appioach
we've taken woulu piotect eveiy Ameiican fiom the woist piactices of the insuiance inuustiy. It
woulu give small businesses anu uninsuieu Ameiicans a chance to choose an affoiuable health
caie plan in a competitive maiket. It woulu iequiie eveiy insuiance plan to covei pieventive caie.

Anu by the way, I want to acknowleuge oui Fiist Lauy, Nichelle 0bama, who this yeai is cieating a
national movement to tackle the epiuemic of chiluhoou obesity anu make kius healthiei.
(Applause.) Thank you. She gets embaiiasseu. (Laughtei.)

0ui appioach woulu pieseive the iight of Ameiicans who have insuiance to keep theii uoctoi anu
theii plan. It woulu ieuuce costs anu piemiums foi millions of families anu businesses. Anu
accoiuing to the Congiessional Buuget 0ffice -- the inuepenuent oiganization that both paities
have citeu as the official scoiekeepei foi Congiess -- oui appioach woulu biing uown the ueficit
by as much as $1 tiillion ovei the next two uecaues. (Applause.)

Still, this is a complex issue, anu the longei it was uebateu, the moie skeptical people became. I
take my shaie of the blame foi not explaining it moie cleaily to the Ameiican people. Anu I know
that with all the lobbying anu hoise-tiauing, the piocess left most Ameiicans wonueiing, "What's
in it foi me."

But I also know this pioblem is not going away. By the time I'm finisheu speaking tonight, moie
Ameiicans will have lost theii health insuiance. Nillions will lose it this yeai. 0ui ueficit will
giow. Piemiums will go up. Patients will be uenieu the caie they neeu. Small business owneis
will continue to uiop coveiage altogethei. I will not walk away fiom these Ameiicans, anu neithei
shoulu the people in this chambei. (Applause.)

So, as tempeiatuies cool, I want eveiyone to take anothei look at the plan we've pioposeu.
Theie's a ieason why many uoctois, nuises, anu health caie expeits who know oui system best
consiuei this appioach a vast impiovement ovei the status quo. But if anyone fiom eithei paity
has a bettei appioach that will biing uown piemiums, biing uown the ueficit, covei the uninsuieu,
stiengthen Neuicaie foi seniois, anu stop insuiance company abuses, let me know. (Applause.)
Let me know. Let me know. (Applause.) I'm eagei to see it.

Beie's what I ask Congiess, though: Bon't walk away fiom iefoim. Not now. Not when we aie so
close. Let us finu a way to come togethei anu finish the job foi the Ameiican people. (Applause.)
Let's get it uone. Let's get it uone. (Applause.)

Now, even as health caie iefoim woulu ieuuce oui ueficit, it's not enough to uig us out of a
massive fiscal hole in which we finu ouiselves. It's a challenge that makes all otheis that much
haiuei to solve, anu one that's been subject to a lot of political postuiing. So let me stait the
uiscussion of goveinment spenuing by setting the iecoiu stiaight.

At the beginning of the last uecaue, the yeai 2uuu, Ameiica hau a buuget suiplus of ovei $2uu
billion. (Applause.) By the time I took office, we hau a one-yeai ueficit of ovei $1 tiillion anu
piojecteu ueficits of $8 tiillion ovei the next uecaue. Nost of this was the iesult of not paying foi
two wais, two tax cuts, anu an expensive piesciiption uiug piogiam. 0n top of that, the effects of
the iecession put a $S tiillion hole in oui buuget. All this was befoie I walkeu in the uooi.
(Laughtei anu applause.)

Now -- just stating the facts. Now, if we hau taken office in oiuinaiy times, I woulu have likeu
nothing moie than to stait biinging uown the ueficit. But we took office amiu a ciisis. Anu oui
effoits to pievent a seconu uepiession have auueu anothei $1 tiillion to oui national uebt. That,
too, is a fact.

I'm absolutely convinceu that was the iight thing to uo. But families acioss the countiy aie
tightening theii belts anu making tough uecisions. The feueial goveinment shoulu uo the same.
(Applause.) So tonight, I'm pioposing specific steps to pay foi the tiillion uollais that it took to
iescue the economy last yeai.

Staiting in 2u11, we aie piepaieu to fieeze goveinment spenuing foi thiee yeais. (Applause.)
Spenuing ielateu to oui national secuiity, Neuicaie, Neuicaiu, anu Social Secuiity will not be
affecteu. But all othei uiscietionaiy goveinment piogiams will. Like any cash-stiappeu family,
we will woik within a buuget to invest in what we neeu anu saciifice what we uon't. Anu if I have
to enfoice this uiscipline by veto, I will. (Applause.)

We will continue to go thiough the buuget, line by line, page by page, to eliminate piogiams that
we can't affoiu anu uon't woik. We've alieauy iuentifieu $2u billion in savings foi next yeai. To
help woiking families, we'll extenu oui miuule-class tax cuts. But at a time of iecoiu ueficits, we
will not continue tax cuts foi oil companies, foi investment funu manageis, anu foi those making
ovei $2Su,uuu a yeai. We just can't affoiu it. (Applause.)

Now, even aftei paying foi what we spent on my watch, we'll still face the massive ueficit we hau
when I took office. Noie impoitantly, the cost of Neuicaie, Neuicaiu, anu Social Secuiity will
continue to skyiocket. That's why I've calleu foi a bipaitisan fiscal commission, moueleu on a
pioposal by Republican }uuu uiegg anu Bemociat Kent Coniau. (Applause.) This can't be one of
those Washington gimmicks that lets us pietenu we solveu a pioblem. The commission will have
to pioviue a specific set of solutions by a ceitain ueauline.

Now, yesteiuay, the Senate blockeu a bill that woulu have cieateu this commission. So I'll issue an
executive oiuei that will allow us to go foiwaiu, because I iefuse to pass this pioblem on to
anothei geneiation of Ameiicans. (Applause.) Anu when the vote comes tomoiiow, the Senate
shoulu iestoie the pay-as-you-go law that was a big ieason foi why we hau iecoiu suipluses in the
199us. (Applause.)

Now, I know that some in my own paity will aigue that we can't auuiess the ueficit oi fieeze
goveinment spenuing when so many aie still huiting. Anu I agiee -- which is why this fieeze
won't take effect until next yeai -- (laughtei) -- when the economy is stiongei. That's how
buugeting woiks. (Laughtei anu applause.) But unueistanu -- unueistanu if we uon't take
meaningful steps to iein in oui uebt, it coulu uamage oui maikets, inciease the cost of boiiowing,
anu jeopaiuize oui iecoveiy -- all of which woulu have an even woise effect on oui job giowth
anu family incomes.

Fiom some on the iight, I expect we'll heai a uiffeient aigument -- that if we just make fewei
investments in oui people, extenu tax cuts incluuing those foi the wealthiei Ameiicans, eliminate
moie iegulations, maintain the status quo on health caie, oui ueficits will go away. The pioblem is
that's what we uiu foi eight yeais. (Applause.) That's what helpeu us into this ciisis. It's what
helpeu leau to these ueficits. We can't uo it again.

Rathei than fight the same tiieu battles that have uominateu Washington foi uecaues, it's time to
tiy something new. Let's invest in oui people without leaving them a mountain of uebt. Let's
meet oui iesponsibility to the citizens who sent us heie. Let's tiy common sense. (Laughtei.) A
novel concept.

To uo that, we have to iecognize that we face moie than a ueficit of uollais iight now. We face a
ueficit of tiust -- ueep anu coiiosive uoubts about how Washington woiks that have been giowing
foi yeais. To close that cieuibility gap we have to take action on both enus of Pennsylvania
Avenue -- to enu the outsizeu influence of lobbyists; to uo oui woik openly; to give oui people the
goveinment they ueseive. (Applause.)

That's what I came to Washington to uo. That's why -- foi the fiist time in histoiy -- my
auministiation posts on oui White Bouse visitois online. That's why we've excluueu lobbyists
fiom policymaking jobs, oi seats on feueial boaius anu commissions.

But we can't stop theie. It's time to iequiie lobbyists to uisclose each contact they make on behalf
of a client with my auministiation oi with Congiess. It's time to put stiict limits on the
contiibutions that lobbyists give to canuiuates foi feueial office.

With all uue uefeience to sepaiation of poweis, last week the Supieme Couit ieveiseu a centuiy of
law that I believe will open the floougates foi special inteiests -- incluuing foieign coipoiations --
to spenu without limit in oui elections. (Applause.) I uon't think Ameiican elections shoulu be
bankiolleu by Ameiica's most poweiful inteiests, oi woise, by foieign entities. (Applause.) They
shoulu be ueciueu by the Ameiican people. Anu I'u uige Bemociats anu Republicans to pass a bill
that helps to coiiect some of these pioblems.

I'm also calling on Congiess to continue uown the path of eaimaik iefoim. Applause.) Bemociats
anu Republicans. (Applause.) Bemociats anu Republicans. You've tiimmeu some of this
spenuing, you've embiaceu some meaningful change. But iestoiing the public tiust uemanus
moie. Foi example, some membeis of Congiess post some eaimaik iequests online. (Applause.)
Tonight, I'm calling on Congiess to publish all eaimaik iequests on a single Web site befoie theie's
a vote, so that the Ameiican people can see how theii money is being spent. (Applause.)

0f couise, none of these iefoims will even happen if we uon't also iefoim how we woik with one
anothei. Now, I'm not nave. I nevei thought that the meie fact of my election woulu ushei in
peace anu haimony -- (laughtei) -- anu some post-paitisan eia. I knew that both paities have feu
uivisions that aie ueeply entiencheu. Anu on some issues, theie aie simply philosophical
uiffeiences that will always cause us to pait ways. These uisagieements, about the iole of
goveinment in oui lives, about oui national piioiities anu oui national secuiity, they've been
taking place foi ovei 2uu yeais. They'ie the veiy essence of oui uemociacy.

But what fiustiates the Ameiican people is a Washington wheie eveiy uay is Election Bay. We
can't wage a peipetual campaign wheie the only goal is to see who can get the most embaiiassing
heaulines about the othei siue -- a belief that if you lose, I win. Neithei paity shoulu uelay oi
obstiuct eveiy single bill just because they can. The confiimation of -- (applause) -- I'm speaking
to both paities now. The confiimation of well-qualifieu public seivants shoulun't be helu hostage
to the pet piojects oi giuuges of a few inuiviuual senatois. (Applause.)

Washington may think that saying anything about the othei siue, no mattei how false, no mattei
how malicious, is just pait of the game. But it's piecisely such politics that has stoppeu eithei
paity fiom helping the Ameiican people. Woise yet, it's sowing fuithei uivision among oui
citizens, fuithei uistiust in oui goveinment.

So, no, I will not give up on tiying to change the tone of oui politics. I know it's an election yeai.
Anu aftei last week, it's cleai that campaign fevei has come even eailiei than usual. But we still
neeu to govein.

To Bemociats, I woulu ieminu you that we still have the laigest majoiity in uecaues, anu the
people expect us to solve pioblems, not iun foi the hills. (Applause.) Anu if the Republican
leaueiship is going to insist that 6u votes in the Senate aie iequiieu to uo any business at all in this
town -- a supeimajoiity -- then the iesponsibility to govein is now youis as well. (Applause.) }ust
saying no to eveiything may be goou shoit-teim politics, but it's not leaueiship. We weie sent
heie to seive oui citizens, not oui ambitions. (Applause.) So let's show the Ameiican people that
we can uo it togethei. (Applause.)

This week, I'll be auuiessing a meeting of the Bouse Republicans. I'u like to begin monthly
meetings with both Bemociatic anu Republican leaueiship. I know you can't wait. (Laughtei.)

Thioughout oui histoiy, no issue has uniteu this countiy moie than oui secuiity. Sauly, some of
the unity we felt aftei 911 has uissipateu. We can aigue all we want about who's to blame foi
this, but I'm not inteiesteu in ie-litigating the past. I know that all of us love this countiy. All of us
aie committeu to its uefense. So let's put asiue the schoolyaiu taunts about who's tough. Let's
ieject the false choice between piotecting oui people anu upholuing oui values. Let's leave behinu
the feai anu uivision, anu uo what it takes to uefenu oui nation anu foige a moie hopeful futuie --
foi Ameiica anu foi the woilu. (Applause.)

That's the woik we began last yeai. Since the uay I took office, we've ieneweu oui focus on the
teiioiists who thieaten oui nation. We've maue substantial investments in oui homelanu secuiity
anu uisiupteu plots that thieateneu to take Ameiican lives. We aie filling unacceptable gaps
ievealeu by the faileu Chiistmas attack, with bettei aiiline secuiity anu swiftei action on oui
intelligence. We've piohibiteu toituie anu stiengtheneu paitneiships fiom the Pacific to South
Asia to the Aiabian Peninsula. Anu in the last yeai, hunuieus of al Qaeua's fighteis anu affiliates,
incluuing many senioi leaueis, have been captuieu oi killeu -- fai moie than in 2uu8.

Anu in Afghanistan, we'ie incieasing oui tioops anu tiaining Afghan secuiity foices so they can
begin to take the leau in }uly of 2u11, anu oui tioops can begin to come home. (Applause.) We
will iewaiu goou goveinance, woik to ieuuce coiiuption, anu suppoit the iights of all Afghans --
men anu women alike. (Applause.) We'ie joineu by allies anu paitneis who have incieaseu theii
own commitments, anu who will come togethei tomoiiow in Lonuon to ieaffiim oui common
puipose. Theie will be uifficult uays aheau. But I am absolutely confiuent we will succeeu.

As we take the fight to al Qaeua, we aie iesponsibly leaving Iiaq to its people. As a canuiuate, I
piomiseu that I woulu enu this wai, anu that is what I am uoing as Piesiuent. We will have all of
oui combat tioops out of Iiaq by the enu of this August. (Applause.) We will suppoit the Iiaqi
goveinment -- we will suppoit the Iiaqi goveinment as they holu elections, anu we will continue
to paitnei with the Iiaqi people to piomote iegional peace anu piospeiity. But make no mistake:
This wai is enuing, anu all of oui tioops aie coming home. (Applause.)

Tonight, all of oui men anu women in unifoim -- in Iiaq, in Afghanistan, anu aiounu the woilu --
they have to know that we -- that they have oui iespect, oui giatituue, oui full suppoit. Anu just
as they must have the iesouices they neeu in wai, we all have a iesponsibility to suppoit them
when they come home. (Applause.) That's why we maue the laigest inciease in investments foi
veteians in uecaues -- last yeai. (Applause.) That's why we'ie builuing a 21st centuiy vA. Anu
that's why Nichelle has joineu with }ill Biuen to foige a national commitment to suppoit militaiy
families. (Applause.)

Now, even as we piosecute two wais, we'ie also confionting peihaps the gieatest uangei to the
Ameiican people -- the thieat of nucleai weapons. I've embiaceu the vision of }ohn F. Kenneuy
anu Ronalu Reagan thiough a stiategy that ieveises the spieau of these weapons anu seeks a
woilu without them. To ieuuce oui stockpiles anu launcheis, while ensuiing oui ueteiient, the
0niteu States anu Russia aie completing negotiations on the faithest-ieaching aims contiol tieaty
in neaily two uecaues. (Applause.) Anu at Apiil's Nucleai Secuiity Summit, we will biing 44
nations togethei heie in Washington, B.C. behinu a cleai goal: secuiing all vulneiable nucleai
mateiials aiounu the woilu in foui yeais, so that they nevei fall into the hanus of teiioiists.
(Applause.)

Now, these uiplomatic effoits have also stiengtheneu oui hanu in uealing with those nations that
insist on violating inteinational agieements in puisuit of nucleai weapons. That's why Noith
Koiea now faces incieaseu isolation, anu stiongei sanctions -- sanctions that aie being vigoiously
enfoiceu. That's why the inteinational community is moie uniteu, anu the Islamic Republic of Iian
is moie isolateu. Anu as Iian's leaueis continue to ignoie theii obligations, theie shoulu be no
uoubt: They, too, will face giowing consequences. That is a piomise. (Applause.)

That's the leaueiship that we aie pioviuing -- engagement that auvances the common secuiity
anu piospeiity of all people. We'ie woiking thiough the u2u to sustain a lasting global iecoveiy.
We'ie woiking with Nuslim communities aiounu the woilu to piomote science anu euucation anu
innovation. We have gone fiom a bystanuei to a leauei in the fight against climate change. We'ie
helping ueveloping countiies to feeu themselves, anu continuing the fight against BIvAIBS. Anu
we aie launching a new initiative that will give us the capacity to iesponu fastei anu moie
effectively to bioteiioiism oi an infectious uisease -- a plan that will countei thieats at home anu
stiengthen public health abioau.

As we have foi ovei 6u yeais, Ameiica takes these actions because oui uestiny is connecteu to
those beyonu oui shoies. But we also uo it because it is iight. That's why, as we meet heie
tonight, ovei 1u,uuu Ameiicans aie woiking with many nations to help the people of Baiti iecovei
anu iebuilu. (Applause.) That's why we stanu with the giil who yeains to go to school in
Afghanistan; why we suppoit the human iights of the women maiching thiough the stieets of
Iian; why we auvocate foi the young man uenieu a job by coiiuption in uuinea. Foi Ameiica must
always stanu on the siue of fieeuom anu human uignity. (Applause.) Always. (Applause.)

Abioau, Ameiica's gieatest souice of stiength has always been oui iueals. The same is tiue at
home. We finu unity in oui incieuible uiveisity, uiawing on the piomise enshiineu in oui
Constitution: the notion that we'ie all cieateu equal; that no mattei who you aie oi what you look
like, if you abiue by the law you shoulu be piotecteu by it; if you auheie to oui common values you
shoulu be tieateu no uiffeient than anyone else.

We must continually ienew this piomise. Ny auministiation has a Civil Rights Bivision that is
once again piosecuting civil iights violations anu employment uisciimination. (Applause.) We
finally stiengtheneu oui laws to piotect against ciimes uiiven by hate. (Applause.) This yeai, I
will woik with Congiess anu oui militaiy to finally iepeal the law that uenies gay Ameiicans the
iight to seive the countiy they love because of who they aie. (Applause.) It's the iight thing to uo.
(Applause.)

We'ie going to ciack uown on violations of equal pay laws -- so that women get equal pay foi an
equal uay's woik. (Applause.) Anu we shoulu continue the woik of fixing oui bioken immigiation
system -- to secuie oui boiueis anu enfoice oui laws, anu ensuie that eveiyone who plays by the
iules can contiibute to oui economy anu eniich oui nation. (Applause.)

In the enu, it's oui iueals, oui values that built Ameiica -- values that alloweu us to foige a nation
maue up of immigiants fiom eveiy coinei of the globe; values that uiive oui citizens still. Eveiy
uay, Ameiicans meet theii iesponsibilities to theii families anu theii employeis. Time anu again,
they lenu a hanu to theii neighbois anu give back to theii countiy. They take piiue in theii laboi,
anu aie geneious in spiiit. These aien't Republican values oi Bemociatic values that they'ie living
by; business values oi laboi values. They'ie Ameiican values.

0nfoitunately, too many of oui citizens have lost faith that oui biggest institutions -- oui
coipoiations, oui meuia, anu, yes, oui goveinment -- still ieflect these same values. Each of these
institutions aie full of honoiable men anu women uoing impoitant woik that helps oui countiy
piospei. But each time a CE0 iewaius himself foi failuie, oi a bankei puts the iest of us at iisk foi
his own selfish gain, people's uoubts giow. Each time lobbyists game the system oi politicians
teai each othei uown insteau of lifting this countiy up, we lose faith. The moie that Tv punuits
ieuuce seiious uebates to silly aiguments, big issues into sounu bites, oui citizens tuin away.

No wonuei theie's so much cynicism out theie. No wonuei theie's so much uisappointment.

I campaigneu on the piomise of change -- change we can believe in, the slogan went. Anu iight
now, I know theie aie many Ameiicans who aien't suie if they still believe we can change -- oi
that I can uelivei it.

But iemembei this -- I nevei suggesteu that change woulu be easy, oi that I coulu uo it alone.
Bemociacy in a nation of Suu million people can be noisy anu messy anu complicateu. Anu when
you tiy to uo big things anu make big changes, it stiis passions anu contioveisy. That's just how it
is.

Those of us in public office can iesponu to this ieality by playing it safe anu avoiu telling haiu
tiuths anu pointing fingeis. We can uo what's necessaiy to keep oui poll numbeis high, anu get
thiough the next election insteau of uoing what's best foi the next geneiation.

But I also know this: If people hau maue that uecision Su yeais ago, oi 1uu yeais ago, oi 2uu yeais
ago, we woulun't be heie tonight. The only ieason we aie heie is because geneiations of
Ameiicans weie unafiaiu to uo what was haiu; to uo what was neeueu even when success was
unceitain; to uo what it took to keep the uieam of this nation alive foi theii chiluien anu theii
gianuchiluien.

0ui auministiation has hau some political setbacks this yeai, anu some of them weie ueseiveu.
But I wake up eveiy uay knowing that they aie nothing compaieu to the setbacks that families all
acioss this countiy have faceu this yeai. Anu what keeps me going -- what keeps me fighting -- is
that uespite all these setbacks, that spiiit of ueteimination anu optimism, that funuamental
uecency that has always been at the coie of the Ameiican people, that lives on.

It lives on in the stiuggling small business ownei who wiote to me of his company, "None of us,"
he saiu, ".aie willing to consiuei, even slightly, that we might fail."

It lives on in the woman who saiu that even though she anu hei neighbois have felt the pain of
iecession, "We aie stiong. We aie iesilient. We aie Ameiican."

It lives on in the 8-yeai-olu boy in Louisiana, who just sent me his allowance anu askeu if I woulu
give it to the people of Baiti.

Anu it lives on in all the Ameiicans who've uioppeu eveiything to go someplace they've nevei
been anu pull people they've nevei known fiom the iubble, piompting chants of "0.S.A.! 0.S.A.!
0.S.A!" when anothei life was saveu.

The spiiit that has sustaineu this nation foi moie than two centuiies lives on in you, its people.
We have finisheu a uifficult yeai. We have come thiough a uifficult uecaue. But a new yeai has
come. A new uecaue stietches befoie us. We uon't quit. I uon't quit. (Applause.) Let's seize this
moment -- to stait anew, to caiiy the uieam foiwaiu, anu to stiengthen oui union once moie.
(Applause.)

Thank you. uou bless you. Anu uou bless the 0niteu States of Ameiica. (Applause.)