the sergeant at arms: madam speaker, the president of the united states.

the president: thank you, thank you, thank you.

the speaker: members of congress, i have the high privilege and distinct honor of presenting to you the president of the united states. the president: thank you, thank you. thank you. thank you. thank you very much. thank you.

thank you. thank you very much. thank you. thank you very much. thank you. thank you very much. thank you. please. madam speaker, vice president biden, memberses of -- 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 trank quilt and they've done so in the midst of war and depression, in moments of great strife and great struggle.

it's 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 marches 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 dwegses and -- divisions you 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 10 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 had 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 safe 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 elk heart, indiana, gailsberg, illinois. i hear about them in letters that i read each night. the toughest to read are those written by children asking why they have to move from their homes, 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 i -- isn't. and 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. we face big and difficult challenges. 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, moe of all the ability to give their children a better life. 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 to me and said, we are strained but hopeful. struggling but encouraged. it's because of this spirit, great decency and great strength, that i have never been more hopeful about america's future than i am tonight.

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. 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, 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. 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. -- i hated it, you hated it. it was about as popular as a root canal. when i ran for president, i promised i wouldn't just do what was popular. i would do what was necessary. 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 hope -- 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 have recovered most of the money we spent on the banks. most, but not all. to recover the rest, i propose a fee on the biggest banks. 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 rescue them in their time of need. as we stabilize the financial system, we also took steps to get our economy growing again. save as many jobs as possible. and help americans who had 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 coverage through cobra, and passed 25 different tax cuts. 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 home buyers. we cut taxes for parents trying to care for their children. we cut taxes for eight million americans paying for college. i thought i'd get some applause on that one. as a result -- 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. because of the steps we took, there are about two million americans working right now who would otherwise be unemployed. 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. and we're on track to add another 1.5 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. economists on the left and right say this bill has helped save 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 work force 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 because of the business it created. talk to the single teacher raising two kids who was told by a 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. 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 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.

now, the true engine of job creation in this country will always be america's business. the 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 -- companies that begin when an entrepreneur -- when an entrepreneur takes a chance on a dream or a worker decides it's time she became her own boss. through sheer grit and

determination, these companies have weathered the recession and are ready to grow. when you talk to small business owners in allentown, pennsylvania, or in 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. >> 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. while we're at it, let's also eliminate all capital gains taxes on maul business investments and provide a tax incentive for all large business and all small business to invest in new plants and equipment. next, we can put americans to work today building the infrastructure of tomorrow. from the first railroads to the interstate highway systems, our nation has always been built to compete. there's no reason europe or china should have the fastest

train or the new factories that manufacturer 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. we should put more americans to work building clean energy facilities and give rebates to americans who make their homes more energy efficient with support to clean energy jobs. and tone courage 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.

now the house has passed a jobs bill that includes some of these steps. as the first order of business this year, i urge the senate to do the same and i know they will. people are out of work. they're hurting. they need our help. i want a jobs bill on my desk without delay. 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 the 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 we should just put things on hold for a while. 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, 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's 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. the president: 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'm not interested in punishing banks, i'm interested in protecting our economy. a strong, healthy financial

market makes it possible for businesses to act -- access credit and create new jobs, it channels the savings of families with 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 -- and the lobbyists are 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 got to get it right.

next, we need to encourage american innovation. last year we made the largest investment in basic research funding in history. an investment that could lead to the world's chief -- cheapest owe slar -- 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, it means making tough decisions about opening new offshore areas for oil and gas development, it means continued investment in advanced biofuels and clean coal technologies, 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. i'm grateful to the house for passing such a bill last year and this year -- this year i'm eager to help advance the bipartisan effort in the senate. 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. 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. third, we need to export more of our goods. because the more products we make and sell to other countries, the more jobs we support right here in america. so tonight we set a new governor doyle, we will double our exports -- set a new goal, we will double our exports to support two million jobs in america.

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. 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. but realizing those benefits also means enforcing those agreements so our trading

partners play by the rules. and that's why we'll continue to shape a doha trade agreement that opens -- that opens markets and why we'll strengthen our trading with people in asia and other key areas like panama and colombia. fourth, we need to invest in the skills and education of our people. now this year, this year we've broken through the stale mate 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, inspiring students to compel in math and science, and turns around tailing -- failing school that steal the future of too many young americans from rural communities to the inner cities. in the 21st century, the best anti-poverty program around is a world class education. 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 the high school paloma 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. to make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to bankser to student loans -- 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. 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. 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 to yousition 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 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 refinancing so that homeowners can move in a more -- into more affordable mortgages. and it is precisely to relieve the burden on middle class families that we still need health insurance reform. we do.

now, let's clear a few things up. 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. 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 have 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. she gets embarrassed. 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 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. 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. i know 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 deaf silt will grow. premiums will go up. patients will be denied the care they need. small business owners will continue to drop coverage all together. i will not walk away from these americans and neither should the people in this chamber. so, as temperatures cool, i want everyone to take another look at the plan we 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. let me know. 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. let's get it done. let's get it done.

now, even if 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. 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. now -- 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. 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. so tonight, i'm proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year. starting in 2011, we are prepared to freeze government spending for three years. 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'll work within a budget to invest in what we need and sacrifice what we don't. if i have to enforce this discipline by veto, i will. we will continue to go through the budget line by line, page by page to eliminate programs we can't afford and don't want. 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, investment fund managers and for those making over $250,000

a year. we just can't afford it. 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 tim conrad. this can't be one of those gimmicks that lets us pretend we saw the problem. -- pretend we solve the problem. they will have to present solutions by a certain date.

yesterday, the senate blocked this bill. so i will issue an executive order that will let this bill go forward because i refuse to pass this problem on to another generation. 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 1990's. now, i know some in my own party will argue, we can't address the deficit or freeze government spending when so many are still hurting. i agree. which is why this freeze won't take effect until next year when the economy is stronger. that's how budgeting works.

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 would have a worse effect on job growth and family incomes. from some on the right, i expect we'll hear a different argument. if we make fewer sacrifices for our people, maintain the status quo on health care, our deficits will go away. the problem is, that's what we did for eight years. that's what helped us into this crisis. that'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. a novel concept. to do that, we have to recognize that we face marne deficit of dollars right now -- 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 influence of lobbyist, do our work openly to give our people the government they deserve.

now 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 visit -- posts all our white house visitors online. that's why we excluded lobbyists from policymaking jobs. 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 the lobbyists give to candidates for federal office. with all due deference to separation of pewers, last week the supreme court reversed a century of law that i believe will open the flood gates for special interests, including foreign corporations, to spend

without limit in our elections. 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 urge democrats and republicans to pass the bill that helps correct some of these problems. i'm also calling on congress continue down the path of earmark reform. democrats and republicans. democrats and republicans. you've trimmed smoft spending, 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 is being spent. 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 naive. 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 had divisions that are deeply entrenched. on some issues that 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 powers and our national security, they've been taking place for over 200 year, they're the very essence of our democracy. but what frustrates 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 -- 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. 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, worse yet, it's stalling 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 that you we still have the largest majority in decades and the people expect to us solve problems, not run for the hills. and if the republican leadership is going to insist that 60 votes in the senate are required to do any business at all in this town, a super majority, 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.

so let's show the american people that we can do it together. this week, this week i'll be addressing a meeting of the house republicans. i'd like to begin monthly meetings with both democratic and republican leadership. you i know you can't wait -- i know you can't wait. now, throughout our history, no issue has united this country more than our security. sadly, some of the unity we felt after 9/11 have dissipated. we can argue all we want about who's to blame for this, but i'm not interested in relitigating 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. that's the work we began last year. since the day i took office we've renewed our focus on the terrorists who threatened our nation, week of 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 switcher action on our intelligence.

we prohibited torture and strengthened partners from the pacific to south asia to the arabian peninsula. and in the last year hundreds of al qaeda fighters and affiliate it's, 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. we will reward the governance, work to reduce corruption and support the rights of all afghans, men and women alike. allies and partners have increased their own commitments and who will come together tomorrow in london to reaffirm

our common purpose. they -- 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'm doing as president. we will have all of our combat troops out of iraq by the end of this august. we will support -- we will support the iraqi government, 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.

tonight all of our men and women in uniform, in iraq, in afghanistan, and around the world, this testify 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. that's why we made the largest increase in investments for veterans in decades.

last year. that's why we're building a 21st century v.a. and that's why michelle has joined with joe biden to fornl a national commitment to support military -- forge a national commitment to support military families. 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. and at april's nuclear security summit, we will bring 44 nations here 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. 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. 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 bistandard to a leader in 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 bioterrorism or 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. 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. always. 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 are you 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 strengthed -- strengthened -- we finally strengthened our laws to protect against crimes driven by hate. this year -- 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. it's the right thing to do. we're going to crack down on violations of equal pay laws so

that women get equal pay for an equal day's work. and we should continue the work of figuring our broken immigration system, to secure our borders and enforce our laws and ensure that everyone who place by the -- plays by the rules can contribute to our economy and enrich our nation. in the end, it's our ideals, our values, that built america. values that allowed to us 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 help ours country prosper. but each time a c.e.o. 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 redeuce 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. 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. 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. the people that made that decision 50 years ago, or 100 years ago, or 200 years ago, we -- if people had made that decision 50 years ago, or 100 years ago or 200 years ago we

wouldn't be here. the only reason we're 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 grandchildren. our administration has had some political setbacks this year. 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. 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 owners who -- 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 americans. 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 dropped everything to go someplace 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 sergeries lives on in -- 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 strengthen our union once more. thank you. god bless you. and god bless the unite

>> you are looking at the scene inside of the house of representatives as barack obama

concludes his state of the union address, the third time he has addressed the congress. the president will depart the house chamber and go back the white house. tomorrow the president will travel to florida where he and charlie crist will be in attendance to talk about high- speed rail. as always, we want to hear from you on the republican sponsors from bob mcdonnell. we will look ahead at the congressional agenda for 2010. a live view of the u.s. capitol and a look inside the house of delegates in virginia out where bob macdonald is giving his remarks. we will be underway in a couple

of minutes. on c-span2, an interview of those in attendance. we will get a reaction for the president's speech. let's see what is happening is in richmond as bob mcdonnell appears ready to deliver the republican sponsors ready to go about 10 minutes. [applause]

[applause] >> thank you, thank you very much. thank you. >> good evening. i'm bob mcdonnell. eleven days ago i was honored to be sworn in as the 71st governor of virginia. i'm standing in the historic house chamber of virginia's capitol, a building designed by virginia's second governor, thomas jefferson. it's not easy to follow the president of the united states. and my twin 18-year old boys have added to the pressure, by giving me exactly ten minutes to finish before they leave to go watch "sportscenter." i'm joined by fellow virginians to share a republican perspective on how to best address the challenges facing our nation today. we were encouraged to hear president obama speak this evening about the need to

create jobs. all americans should have the opportunity to find and keep meaningful work, and the dignity that comes with it. many of us here, and many of you watching, have family or friends who have lost their jobs. 1 in 10 american workers is unemployed. that is unacceptable. here in virginia we have faced our highest unemployment rate in more than 25 years, and bringing new jobs and more opportunities to our citizens is the top priority of my administration. good government policy should spur economic growth, and strengthen the private sector's ability to create new jobs.

[applause] we must enact policies that promote entrepreneurship and innovation, so america can better compete with the world. what government should not do is pile on more taxation, regulation, and litigation that kill jobs and hurt the middle class. it was thomas jefferson who called for "a wise and frugal government which shall leave men free to regulate their own pursuits of industry and shall not take from the mouth of labor the bread it has earned." he was right. today, the federal government is simply trying to do too much. last year, we were told that massive new federal spending would create more jobs immediately and hold unemployment below 8%. in the past year, over three million americans have lost their jobs, yet the democratic congress continues deficit spending, adding to the bureaucracy, and increasing the national debt on our children and grandchildren. the amount of this debt is on pace to double in five years,

and triple in ten. the federal debt is already over $100,000 per household. this is simply unsustainable. the president's partial freeze on discretionary spending is a laudable step, but a small one. the circumstances of our time demand that we reconsider and restore the proper, limited role of government at every level. [applause] without reform, the excessive growth of government threatens our very liberty and prosperity. in recent months, the american people have made clear that they want government leaders to listen and act on the issues most important to them. we want results, not rhetoric. we want cooperation, not

partisanship. there is much common ground. all americans agree, we need a health care system that is affordable, accessible, and high quality. but most americans do not want to turn over the best medical care system in the world to the federal government. republicans in congress have offered legislation to reform healthcare, without shifting medicaid costs to the states, without cutting medicare, and without raising your taxes. we will do that by implementing common sense reforms, like letting families and businesses buy health insurance policies across state lines, and ending frivolous lawsuits against doctors and hospitals that drive up the cost of your healthcare. and our solutions aren't thousand-page bills that no one has fully read, after being

crafted behind closed doors with special interests. in fact, many of our proposals are available online at solutions.gop.gov, and we welcome your ideas on facebook and twitter. all americans agree, this nation must become more energy independent and secure. we are blessed here in america with vast natural resources, and we must use them all. advances in technology can unleash more natural gas, nuclear, wind, coal, and alternative energy to lower your utility bills. here in virginia, we have the opportunity to be the first state on the east coast to explore for and produce oil and natural gas offshore.

but this administration's policies are delaying offshore production, hindering nuclear energy expansion, and seeking to impose job-killing cap and trade energy taxes. now is the time to adopt innovative energy policies that create jobs and lower energy prices. all americans agree, that a young person needs a world-class education to compete in the global economy. as a kid my dad told me, "son, to get a good job, you need a good education." that's even more true today. the president and i agree on expanding the number of high- quality charter schools, and rewarding teachers for excellent

performance. more school choices for parents and students mean more accountability and greater achievement. a child's educational opportunity should be determined by her intellect and work ethic, not by her zip code. all americans agree, we must maintain a strong national defense. the courage and success of our armed forces is allowing us to draw down troop levels in iraq as that government is increasingly able to step up. my oldest daughter jeanine was an army platoon leader in iraq, so i'm personally grateful for the service and the sacrifice of all of our men and women in uniform, and a grateful nation thanks them.

we applaud president obama's decision to deploy 30,000 more troops to afghanistan. we agree that victory there is a national security imperative. but we have serious concerns over recent steps the administration has taken regarding suspected terrorists. americans were shocked on christmas day to learn of the attempted bombing of a flight to detroit. this foreign terror suspect was given the same legal rights as a u.s. citizen, and immediately stopped providing critical intelligence. as senator-elect scott brown says, we should be spending taxpayer dollars to defeat terrorists, not to protect them.

here at home government must help foster a society in which all our people can use their god-given talents in liberty to pursue the american dream. republicans know that government cannot guarantee individual outcomes, but we strongly believe that it must guarantee equality of opportunity for all. that opportunity exists best in a democracy which promotes free enterprise, economic growth, strong families, and individual achievement. many americans are concerned about this administration's efforts to exert greater control over car companies, banks, energy and health care. over-regulating employers won't create more employment. overtaxing investors won't foster more investment. top-down, one-size fits all decision making should not

replace the personal choices of free people in a free market, nor undermine the proper role of state and local governments in our system of federalism. as our founders clearly stated, and we governors understand, government closest to the people governs best. and no government program can replace the actions of caring americans freely choosing to help one another. the scriptures say, "to whom much is given, much will be required." as the most generous and prosperous nation on earth, it is heartwarming to see americans giving much time and money to the people of haiti. thank you for your ongoing

compassion. some people are afraid that america is no longer the great land of promise that she has always been. they should not be. america will always blaze the trail of opportunity and prosperity. america must always be a land where liberty and property are valued and respected, and innocent human life is protected. government should have this clear goal -- where opportunity is absent, we must create it. where opportunity is limited, we must expand it. where opportunity is unequal, we must make it open to everyone.

our founders pledged their lives, their fortunes and their sacred honor to create this nation. now, we should pledge as democrats, republicans and independents -- americans all -- to work together to leave this nation a better place than we found it. god bless you and god bless this great land of america.

>> with friends and family and members of the virginia delegation, bob macdonald delivering to republican response. he was war -- bob mcdonnell delivering the republican response. he was sworn in as the governor

of virginia. our phone lines are open. first up is somebody from florida on the republican line. your reaction to the president's speech and the republican response. >> i think the president did a great job. he spoke about jobs and the new industrial revolution, which is the green revolution. he spoke about families and businesses. he set the record straight on that. he gave a good chronological description of what -- on debt. he gives a good chronological description of what happened to the united states. he mentioned that it was not up to him, but it was up to congress. >> can this congress work with this president, democrats and

republicans? >> i think that it can, but it is up to the american people to do it. >> i thought that the president did an excellent job, especially at the beginning of the speech. one thing that i saw that was missing was the fact that you can create the jobs that you want, but you do not stipulate that american citizens are going to be hired. what good is it without visa restrictions? they had a loophole that banks to receive tarp money could still hire foreign workers. it was a deliberate omission. the department of labor says that even when a qualified u.s. worker wants the job, the u.s. worker can be displaced in favor of the foreign worker. >> david is next from xerox, republican line.

what did you -- missouri, a republican line. i think that there were a lot of promises that were already made. there were promises made on the backs of the taxpayer and not on the backs of the people that are willing to work. >> the president enters the house chamber and delivered his state of the union address. he is back at the white house at the top of the hour. he is keeping track of what some of you are saying and what others are tweeting. >> i wanted to start off by showing some of the twitter messages sent by members of the house and the senate. it was a bit of a surprise. normally during an event like this we get a lot of twitter traffic from members of the house and the senate. if today, they were remarkably restrained.

almost all of them today took the rules that you are not supposed to tweet from the house floor to heart. if you go over to the computer c-span state of the union held, we have twitter reactions from the worst. if you scroll down a little bit, we have aggregated tweets from members of the house in a blue box. in the red box, we have tweaked from the u.s. centers. there were not a whole lot -- u.s. senators. there were not a whole lot. chris dodd after the speech said that the president outlined clear, cummins said steps that we should use to put middle- class families -- common sense steps that we should use to put middle-class families back on the road to prosperity.

>> i think we must hit -- cut taxes, scaled-back bureaucracy, out of control spending and government control if we want to achieve real change. this is from arlen specter. i agree, mr. president. it is time to end do not ask, do not tell. sexual orientation has nothing to do with patriotism. after the speech, the congressman shorthands and thanked the president. a lot of people have been pleading -- tweeting us. for example, we have joanne, noted during the speech that military and supreme court do not cloud or react at the speeches. they must remain neutral.

the speech was prepared. right now, it sounds like he is speaking straight from the heart. limited government at every level is exactly the kind of change in need. that is what the president does not understand. are the salahi's in the audience? >> what was the town tonight? -- tone tonight? >> a life-size president rather than the larger than life created by some of his speeches early in his presidency. the tone was conversational and fluent as barack obama as a speaker always is. he had self-deprecating humor.

it -- the rhetorical tone fit the substance, which was meat and potatoes and not grandiose, especially in comparison to the speech that he gave a year ago before the chamber when he was promising his big bang theory including cap-and-trade legislation for global warming, financial reregulation. all of that was supposed to be done in 2009. we have seen the obama presidency become rescaled to the realities of washington. >> did you get the sense that he was scolding congress? >> at times there was a scolding tone. he made it clear that he was

scolding both parties. at one point he and knowledge that he himself had political setbacks, some of them deserved. he was trying to make a admonitory tone. >> if you could stay with us, i want to go back to a couple of other colors and get their reaction. next is jim from los angeles on the independent mind. what did you think of this speech tonight? >> i thought that the republican response was neocon. the president talk about foreign entities, but it did not talk about hillary clinton negotiating sanctions to go to war with iran. >> thank you very much for taking my call. i appreciate your coverage. i wanted to comment on a few parts. a fellow mentioned that it was

great that he saw the things that he did that were not quite right. the economy is making some good strides, but we are not there yet. i asked my friends who owned his own business and construction. he said that it was very tough this past year. on health care, you mentioned that the american people -- the american people at the polls have said how they do not want this thing more and more. a new senator collect from massachusetts that has not been seated -- elect from massachusetts has not been seated. they do not want to see him. -- seat him.

>> there will be no votes on health care before brown is there. it will be more likely next week. we will go to mark on the republican mind. -- line. >> you can see obama on march -- obama's almost failed bid for social medicine has put him on the defensive. >> and democrats line, your reaction. >> president obama, you are doing a terrific job. i support all of your policies. >> thanks for the call. we will move ahead a little bit. the president will be traveling to baltimore on friday. he will be speaking to house republicans. he talked about by partisan tonight.

it is time for common sense. -- bipartisan tonight. it is time for common sense. >> he says that by partisanship will now be the order in washington, even though it has the bin. the republican view in the senate, you got your 41st vote. if you say that it takes 60 votes for doing anything, we cannot do anything without your help, so you have a responsibility to work with us. obstructionist the longer an option for you. -- obstruction is the longer an option for you. there was a highly partisan pattern of votes in 2009. it would have to go for a more bipartisan legislation in 2010.

>> i realize that you read the stories and not always the headlines. four year old -- for your old boss, what is the headline? >> i do not give up and the presidents -- the american people do not give up. if that is what the white house hopes that the headline will be. the critics will say that the headline should be, obama clarify is nothing. -- clarify is nothing. they were waiting for clearer signals. for some, it might have been seen as more of a holding position. >> john harris, the editor in chief of politico the joining us from arlington, virginia. we would join ralph joining us

from chicago. >> thank you. just by thinking upside of the pharmaceutical box, we could save $1 trillion in three wars. the war on drugs is estimated at half a trillion dollars in taxpayer money according to a secretary. in the public sector it is costing us $1 trillion a year. the war on drugs is on top of the war on terror. we end up double crossing car allies in the war on terror by insisting fighting the war -- our allies in the war on terror by insisting on fighting the war on drugs with them. if >> one member of the president's cabinet is not in attendance tonight. there are actually two. hillary clinton is in london. the member that is in an

undisclosed location is the housing secretary. >> this could regenerate some of the hope for change, which he campaigned on. i was disappointed that he talked about nuclear power and drilling in some of his energy options. i am very much against that. it would go against the environmental thing he is doing. >> and live at the view of the capital. -- a live view of the capital. >> i was impressed on how he it stepped up to leadership and how the american people -- the tiredness of the electoral system. how they need not to live from election to election. >> he will travel with joe biden to speak about high-speed rail.

next is dan from minneapolis, republic and mine. >> i think he said a lot of things that people wanted to hear. it is just a bunch of rhetoric as far as i am concerned. he will not follow through on nuclear energy, on clean coal, and on onshore drilling, let alone offshore drilling. >> your republican governor to live for the response to the president. what did you think? >> i am happy he gave the republican response. he was a good choice that represents the checks and balances that virginia once. i wanted to praise obama. you need to recognize that filibuster ring every bill is destroying the change that america needs. -- filibustering every bill is

destroying the change that america needs. >> i want to talk about something other than quitter. i want to talk about facebook -- than twitter. i want to talk about facebook. if you go to our website, it will take you to where you can join the conversation. we have an open thread where you can respond to the governor ' a speech. we have nearly 350 people who have commented. friend us on facebook and start commenting. i wanted to share with you two utilities that are not strictly media. they are interesting. the first is a wor