increased their exports. and we will reform the export control with national security. we have to find new markets, just as the competitors are finding. america is on the sidelines as the other -- if we are on the sidelines as other nations are doing this, we will lose jobs offshore. however, realizing the benefits also means enforcing those agreements to the trading partners so that will play by the rules. that is why i will continue to try to open global markets to

strengthen the trade relations in asia and with partners like south korea, panama, and columbia. . 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. only reward success. in 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 united states of america. thank you.

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2010]

>> thank you. thank you very much. thank you. good evening. i am bob mcdonnell. eleven days ago i was sworn in as the 71st governor of virginia. i am standing in the historic house chamber of virginia's capitol, a building designed by virginia's second governor, thomas jefferson. it is not easy to follow the president of the united states. my young son gave me added pressure by giving 10 minutes before they get to go and watch sports center. i am joined by fellow virginians to put a republican perspective on how to address the challenges of our nation. we were encouraged to hear president obama's speech about the need to create jobs. for all americans should have the opportunity to have meaningful work and the dignity that comes with it.

many of us here tonight and many of you watching have family and friends will have lost their jobs. one in 10 americans is unemployed. that is unacceptable. in virginia we have the highest unemployment rate in 25 years. bringing new jobs with more opportunity to our citizens is the top priority of my administration. this government -- good government policy should spur economic growth and strengthen the private sector's ability to create new jobs. we must enact policies that promote an entrepreneur ship and innovation so america can better compete with the world.

what the government should not do is pile on more taxation, regulation, and litigation that kill jobs and hurt the middle class. thomas jefferson 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 trying to do too much. last year we were told massive federal spending would create more jobs and help the unemployment get below 8%. more than 3 million people lost their jobs in the past year. the democratic congress continues deficit spending, adding to the proxy, and increasing the national debt on our children. the amount of debt will triple in 10 years. the federal debt is over $100,000 per household. this is simply unsustainable. the president's told of a freeze

tonight on discretionary spending, which is a laudable step, a small one. circumstances demand we reconsider and restore the proper limited role of government at every level. without reform, the excessive growth of government threatens our liberty and prosperity. in recent months the american people have made clear if we want government leaders to 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 that we need health care system that is affordable, accessible, and high-quality. most americans do not want to turn over the best medical sayre -- medical care system in the world and to the federal borrowing. republicans have offered legislation to reform healthcare, without shifting medicaid cost to the states, without cutting medicare, and without raising taxes. we will do that by implementing common sense reforms like letting families and businesses buy health care insurance policies across state lines and ending from those lawsuits against doctors and hospitals, which drives up the cost of your of 1000 page bill that no one has read, after being crafted behind doors. many of our proposals are available online at solutions.gop.gov vdot glove. we welcome your ideas on

facebook and twitter. all americans agree that this nation must become more energy independent and secure. we are blessed in america with vast natural resources. we must use them all. advances in technology can unleash more natural gas, nuclear, wind, coal, for alternative energy that will lower your utility bill. in virginia we have the opportunity to become the first state on the east coast that will drill for and produce national -- 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 for innovative energy policies to 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 young kid, my dad told me, son, if you want a good job, you need a good education. my dad was right. that is even more true today. the president and i agree on expanding the number of high- quality charter schools and rewarding teachers for excellent performance. for school tauruses for parents and teachers 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 that 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. i am personally grateful for the service and sacrifice of all our men and women in uniform. 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 imperative for national security. but we have serious concerns over the recent steps the administration has taken regarding terror -- suspected terrorists. americans were shocked on christmas day to learn of the attempted bombing of a flight to detroit. as far and terror suspect was given the same legal rights as a u.s. citizen and immediately stopped providing critical intelligence. we should be spending taxpayer dollars to defeat terrorists and not to protect them. at home, the government must

help foster a society in which all our people can use their god-given talents and liberty to pursue the great 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 does best in a democracy that promotes free enterprise, economic growth, strong families, and individual achievement. many americans are concerned about this administration's efforts to exert greater control over energy and health care. over regulating will not create more employment. overtaxing investors won't foster more investment. top-down, one size fits all decision making should not replace the personal jewesses' of free people in a free-market nor undermine the proper role of state and local governments for our system.

we dia government close to the e governs best. -- one-size-fits-all decision making should not replace the personal choices of free people. no government program could ever replace the actions of caring americans freely choosing to help one another. to whom much is given, much is required. it is heartening to see americans giving much time and money to the people of haiti. thank you for your ongoing compassion.

some people say they are afraid america is no longer the great land of promise she has always been. that should not be. america will always blaze the trail of opportunity and prosperity. america will always be a land where liberty and property are valued and respected and innocent human life is protected. government should have a clear goal, where an opportunity is absent, we must create it. where it 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. now we must pledge as democrats, republicans, and independence, americans all, to work together to lead this nation -- to leave this nation an even better place than we found it. god bless you and god bless america. thank you. .