do you think, secretary cohen, other countries we are working with, if things developed in a negative way that they would be willing to join us on that? >> it is a crucial question. the willingness of other countries continue to work with us on imposing sanctions contrary to the economic interests of these countries, is dependent on their continuing belief that we are seeking a negotiated resolution. in the future, if the talks break down, the ability to hold together the coalition to intensify the sanctions is going to depend in large part on who our partners perceive is to blame for the breakdown. so long as we do everything in our power to try to achieve an agreement that meets our needs

and the needs of our partners and it is iran that is to blame for not reaching an agreement you will have a much better chance of holding together the two national coalition and being able to intensify the pressure on iran. >> in regard to your question about who is in charge, we have perfect knowledge of this. hope we have -- what we have assessed, there are clearly different power centers in iran. have a tendency to look at iran as if it is the one country in the world that doesn't have politics. in fact, it does. the supreme leader is the first among equals for some time, but there are other critical constituencies that factor in. of the most powerful things that happened in iran was actually the election of president rouhani. in our judgment, that was a reaction to the desire of the

iranian people to improve the economy, to get out from the isolation they are under, and to move iran in a different correction. within the confines of the system, that was what president rouhani was trying to be responsive to. i think the supreme leader has to measure that in factoring in how much leeway he is going to give to the negotiators in the nuclear context. to date, as the iaea continues to confirm, iran has made good on the commitments it has made under the interim agreement. going forward, if the power center changed as we've made very clear iran, if it violated the agreement in any fashion, would be subject to an intense reaction from us, and as the under secretary said, if we are able to preserve the unity of the international coalition you pointed out the beginning of

your remarks, that would give us a much greater ability to respond effectively to any decision by iran to violate the commitments that it makes. >> thank you very much. >> senator rubio? >> secretary bullington, much of the debate has been about the role of congress and our need to trust and the ability of the administration to craft a good deal and the fact that we would be consulted. i want to take you back to the last time you were before this committee, and i asked you a question about whether there would be any changes in cuba policy. your answer -- "anything in the future that might be done in cuba would be done in full consultation with of this committee.' you told me that the last time you were here before this committee. who did the administration consulted with on this committee before it announced the changes?

>> senator, i regret that i did not live up to the standard that i sent during that hearing and in the remarks you just quoted. i think i could've done a better job in engaging with you and consulting with you in advance. i regret that. >> did you consult with the chairman? >> a number of members were reached out to, consulted. what happened was this -- >> who were the members consulted? >> if i could come back to you on that, i would need to discuss. i would need to get an accounting of that, and make sure that any members consulted would -- >> i can assure you that i was not consulted. >> you were the chairman at the time. were you not consulted? >> no. there is a difference between notification and consultation. to be notified when it's going to happen is not consultation. >> we are being told that we are going to be in the loop on everything happening with iran.

have an example very recently where we were not in the loop. >> senator, as you know, this was a delicate situation in which we were trying to get our delegates back. we were trying to get our asset back. in the endgame of that, there was a lot going on to make sure that happened in a safe and secure way. i come back to what i said at the outset. >> i am not correlate with the allen gross release. i'm correlate with the -- quarreling with the policy change. the use of the word consultation as defined by the administration in the last instance i just cited is problematic. i don't want to make this about cuba. i also asked whether there would be changes in policy outside of the democratic order. i asked you whether those changes -- when you say move

forward, move forward on democratic reforms, not simply economic reforms, you said, that simply economic reforms. we don't see any democratic reforms. we saw a release of 53 visitors. one of them was released a full year before december 17. five have been rearrested. since the deal was done, 200 new arrests have occurred in cuba. here is why that is relevant. we are being asked to sit tight. we are going to be fully consulted. it sounds like the only people fully consulted are the people who agree with the administration. if you don't agree, you will be notified. my second point goes to the question that senator udall asked about why the iranians would undergo some much pain in pursuit of this. the answer to who is in charge is ultimately who they call the supreme leader, the ayatollah. >> he is the first among equals, but he has other constituencies

he has to factor in. >> can they agree to a change without his approval, given the support he has in the legislative branch? >> highly unlikely. >> the ayatollah is not simply a head of state as we normally see it. he is a radical cleric who views himself -- he doesn't just a view iran as a nationstate but iran as a cause as henry kissinger has described it. the cause is to have the entire world living under the flag of islam. it goes further and states that the ayatollah notches the leader of iran, but the leader of all muslims in the world -- isn't that accurate? iran is where he lives, but he views his mandate as extending to the whole world. these are unambiguous statements on their part. he doesn't just view himself as a cleric. he views himself as a temporary filling for the 13th imam, who

under shia, is an imam who will emerge one day and govern the entire world under the flag of islam. the stated purpose for iran is to serve as a base. that is what motivates him. we are a scribing to his regime nationstate characteristics of a normal country that has a cost-benefit analysis about what is in the natural interest of iran. i don't dispute that there might be some leaders who hold those views, but the ayatollah doesn't view it that way. he views his obligation as to bring about the arrival of the 13th mom -- imam. under his clerical interpretation and that of many in the shia, the 13th imam cannot emerge until there is a cataclysmic showdown.

when a country led by a person who wants there to be a cataclysmic showdown between the muslim and non-muslim world has designs on a nuclear weapon, now we have cause for concern. that is why they expand their military capability, and that is why they want a nuclear weapon. they have shown that they reject everything that is not islamic. they reject legitimacy of the u.n. they reject legitimacy of the u.s. they accept the benefits of these international orders. for example, their seat at the u.n. while still being able to reject her obligations. what have they done? into the has three, the position of the world was, no enrichment. and it became, you can enrich up to 20%. then it became, you can enrich up to 20% as long as you said it overseas. now it is, you can enrich up to 20% in iran as long as it is for medical purposes.

it is pretty impressive how they've been able to use this process. maybe over the next five years we will build a bomb for them. the other two components of the nuclear program move forward unabated. you can buy weapons designs of right now. you can download it online potentially if it is a crude weapon. the missile program continues unabated. they continue to test long-range missile capabilities, not to mention adding to their already considerable conventional weapons capability. this is why we are concerned and have a right to be concerned. this is not a traditional nationstate. this is a cleric-led regime, a clerical government with the clear intent of ultimately one day unifying the entire world under their radical version of islam led by someone who believes that will only happen after he tackles and showdown with the west. -- after a cataclysmic showdown with the west.

we have real reasons to believe that they will be willing to sis -- except a short-term suspension because their long-term view is, at the end of the day, they will be at a showdown point. that is why we are skeptical about this deal. we are not dealing with belgium. we are dealing with a radical cleric with a radical view of his role in the world. he wants nuclear weapons to be able to do it. i'll take anyone here would dispute that even if they agree to a short suspension, -- i don't kick anyone here would dispute that even if they agree to a suspension, you can always invent a pretext for why you now need a weapon because of the hostilities of the west, because it is time for the 13th imam to emerge, whatever. they will have the weapons design and the delivery system and the weapons. that is why we are so skeptical.

>> just to respond briefly, we share your concerns and skepticism precisely because of iran's along track record that you alluded to. it's why any agreement we reach will have to have imposed stringent requirements on transparency and monitoring to give us confidence they will not break up. with regard to consultations going forward, on this issue, it is my sense over the past months and past years, the administration has been here in closed sessions, open hearings, one-on-one conversations smaller group conversations to lay out extensively where we are, where we are trying to go. i commit to, mr. chairman senator rubio, others, that going forward we will not only continue that would expand that and be up here anytime that you want, any place to talk about

where we are. some of that we have to do in closed session or in a private room because the negotiations are ongoing, but we want to make sure that you see the full details of what we are trying to achieve. with regard to the suspicions about iran and the supreme leader, we share them. we could spend all day going through the outrageous things that he has said in the past about us, israel but sometimes reality has a way of intruding. no matter what it is that he may believe or what he may want, no matter his exceptional role in the system, and i think you are right about that, he has to deal with the realities iran is facing. he has seen a country that has been subjected to extraordinary pressure economically, that has been isolated, and he has seen

politically that a lot of the iranian people do not like that. president rouhani's election was a response to that. you seen him give the negotiators more leeway than frankly we would have expected. he has kept of the talks going. at the end of the day, we will have to judge whether what we have achieved in any kind of solution meets our security interests. we will not take a bad deal precisely because we share your concerns and share your suspicions. this is not happening in a vacuum. we also have to ask ourselves continuously, as compared to what? if we are not able to reach an agreement, it may become increasingly difficult to sustain the sanctions regime. it depends on what secretary cohen said, who is perceived as being responsible for the failure to get an agreement. we have held our partners there.

a large part of it is because they believe we are trying to drive to an agreement. that is the purpose, to get them to the table. we start from the same spot you do. we are very suspicious. we also see the reality of the supreme leader's thinking. >> again, this committee is not proposing anything that breaks us apart from the international partners that we have. i know you keep referring to that. that's a red herring that keeps being thrown out. we are asking for consultation and a vote on the deal that we have been so involved in making happening -- making happen. >> put me in the column with the skeptics in this committee such as the chairman and ranking member. i have been sitting through this from the beginning.

i thought these guys were going to scam you from the beginning and i'm convinced that they have done that. i think they've got test setup for what could be a cash they've got us set up for what could be a disaster. first of all, what you've got to do is look at the background articulated by senator rubio. in addition to that, look at the efforts we have had in the past. look in the chapter about president rouhani's book about how he was using the peace process to actually continue their ambitions to get a nuclear weapon. use that as your background. then think about the u.n. resolution that said, iran you can't do this. iran said, we are going to do it no matter what. we aren't going to negotiate unless you guys agree that we can have some kind of a program. now they've crossed that bridge. if you are going to do this, you

are going to continue with your nuclear ambitions going in the direction senator rubio has suggested. why wouldn't you sit down with your enemy, negotiate this kind of deal, and now you know exactly what the enemy is going to know? you are going to know what the inspection regime is. you know how they are going to go about this. you are going to be able to put together a system where you can continue your ambitions while the people who are supposed to be curtailing you are going about what they are going about and you know all the ways they are going to do it. i think you guys are going to be bamboozled. i hope you come in here sunday and say doofus, you have no idea what you are talking about. i don't think this is going to happen. these guys are bad people. every time i'm on the intelligence committee, i sit here, and whether it is syria or iraq or hezbollah wherever it

pops up, whose fingerprints are on this? it is the iranians. it is getting late. i appreciate what you guys are doing. bless you. i hope you can pull it off, but i've got to tell you. i thought from the beginning you are going to get scammed, and every day that goes by, and as i listen to how these negotiations are going, i think you're getting scammed. i hope i'm dead wrong. >> i would just say very quickly a couple of things. i think with regard to what president rouhani did his past life as a negotiator -- first of all, we were inspired by that in looking at what we insisted on in the interim agreement. it is precisely because we didn't want iran to repeat what it has done in the past, which is endless time talking at the table while it has gone on with its program. i would say also i think he is

a politician. i suspect some of what he wrote in his book was to appeal as a politician to other iranians. again, we start from your premise that this is not about trusting. this is about absolutely verifying all of the commitments that they make. with regard to the inspections and access and monitoring peace, -- piece this is fundamental to any resolution we would reach. i believe that we will have the ability if we reach the kind of agreement we want to reach to significantly enhance our ability and the ability of the international community throughout the entire production line to know what they are doing, when they are doing it. he would develop a base of knowledge about the people, the places, the techniques that would stand us in good stead even beyond the duration of the agreement. right now, based on what we have

achieved to date, prime minister netanyahu can before the united nations a couple years ago and held up at the drawing of the bomb, and there was that line getting close. that was the 20% enrichment. he was right. that was critically important. it was being produced at a very facility. that has stopped under the jpoa. the other pathways to a bomb -- looking at within my two at the irak facility -- we had deep concerns about it. once that facility is turned on and fueled, it is problematic not impossible, but problematic to deal with. we stopped at that in its tracks. no fuel. no progress. natanz building up a bunch of lower centrifuges and building

up a massive stockpile that could be quickly converted to a higher grade -- there too, no next generation centrifuges wrist -- installed. stockpiles cap. -- capped. >> i appreciate that. i hope it works. any inspection regime, any regime you put together for doing this, they are going to know all about it. they are going to know the details of it. just remember that their objective is not your objective. our objective is to stop them. their objective is to get to that point and into in doing so, not get attacked in the meantime. there are technologies that can get around it. i hope you are right. on a very parochial matter, as we are speaking right now, the president is on his way to idaho. while he is there, pursuant to a request from us, he's going to

meet with a woman by the name of this is abba dini. her husband is in prison and iran. there are three americans there. for the life of me -- 20 sherman has had to sit there and listen to me say this -- why you guys cut loose all of that money when they are so cash hungry without putting your hand on it and saying we are going to take it off when those kaiser free, i cannot believe they wouldn't cut of those guys lose. the administration says it is the compassionate arm of the government. so be it. use some compassion. let's get this guy home. he has no business being in jail in iran sibley because -- simply because he is a christian. my time is up. >> senator, can i say you are absolutely right? the three prisoners must be released regardless of anything

else we are doing with iran. it's an entirely distinct issue. they are wrongly imprisoned. we need to find robert levinson and bring him home. we also think tying that to any agreement, success or failure is not the best way to get them out. i think you know this -- the only issue that we raise with them on the margins of the nuclear talks every single time other than the nuclear talks are those who are unjustly imprisoned in iran. we are working every day to get them home. >> get it done. >> senator menendez? >> thank you, mr. chairman. thank you for your courtesy. secretary, let's be honest. as it relates to consultation there were long consultations with members who were in agreement with the president's proposed policy changes but none

who might be in disagreement. that is on cuba. that gives rise to the concern that there will be no consultations but notification only to those of us who may concern about the nature of any agreement or continuous sanctions. it was the subject of your conversation with me when you were a nominee, questions i asked you before the committee. i'm disappointed. with reference to march 24, if there is a "deal" will that deal be written? >> at this point, i cannot tell you. the expectation would be that we would be able to show all of the critical elements of the deal, and whether there would be an actual initial agreement that would be turned into a technical

agreement, i can't tell you. >> wouldn't the outlines of the deal be something that the iranians and the p5 plus one could sign on to? >> it would be my expectation but as i sit here today, i cannot tell you exactly the form. >> it concerns me that we may not have written agreement. if there is no deal on march 24 what then? >> senator, i think if there is no agreement on the core elements of the deal by march 24 , it will depend on exactly where we are. >> you may say, let's keep it going. >> if it is clear by then that we are simply not going to get to yes, by which i mean, it is clear that the iranians will not meet the requirements, i think we will have to work closely with you on what the next steps

will be. if, however, we have closed off most of the key chapters, but let's say, for arguments sake, one key chapter remains, is something we would want to talk to you about. sitting here today, a lot depends on where we are. if we conclude by the end of march that they are simply not going to do what they need to do, that puts us in a different position. >> are any of those 100 sanctions you talked about that you levied, was iran complicit in any of them in terms of trying to evade sanctions or was the individual working on their own? >> for some number of them, at least some of them were iranian citizens, people in iran, and others, there is no question that iran was waiting of what was under way. >> during this time, there were efforts by iran to evade

sanctions. fortunately in those instances you caught them. it gives me another concern about their intent. let me say a couple of observations. with reference to senator paul and senator boxer, not sure legislation that says, this is what will happen if there is no deal or a violation of the deal, which you said you think is acceptable, is really any different from what we are saying. i think that is nuance, at best. it is interesting to note that sanctions on russia visa v ukraine haven't caused them to walk away from what they think is an important deal to be achieved. the suggestion that sanctions whether you have concluded a deal or not -- if the russians wouldn't walk away with sanctions on ukraine, i think

it's pretty telling. to be very honest with you, the overwhelming number of sanctions that this committee has levied to the congress have overwhelmingly had a much more significant lead time than immediate position. obviously, the time for necessary for it to have an effect on iran has been even greater. there is no such thing as an immediate sanction that ultimately has an immediate effect. there are few of those. i don't know, but it seems to me it took us a fair amount of time to know about a covert operation. him -- i hate to see that doing something covert would take as

long. finally, you stated that we would have the same ability to respond in the future should iran breakout, and we would have all options on the table. i think that ignores the reality that iran will be in a different position. iran will be able to sell more than 2 million barrels of oil. it will have access to $100 billion in reserves currently being held overseas, and it will have the ability to procure critical items for its program. it gets a lot from an agreement that would require no dismantling of the program. we get a one-year alarm bell which may not be enough time to react in a nonmilitary faction -- fashion. the president telling people sanctions they break the coalition, and we may be left with only a military option. i will tell you something -- if

you have nothing in place after a no-deal situation, the president may vary we'll -- well be in a position where his only option is a military option or accepting iran as a military state. that is a terrible set of circumstances. maybe you don't hear that. maybe there is another set of secret deals or letters on the side that we don't know about. there have been a lot of those. maybe you can tell us whether there are are any we should be waiting for. >> there are not. >> that is good to know. hopefully, there are none that will surface afterwards, or else we will have to have a different conversation. no one has worked harder to try to get you to the point to succeed. by the same token, i have to be honest. you need to succeed in a way that is meaningful at the end of the day. there is a bit of a trust problem. when you have secret deals, when

you don't consult, which is to say, ask -- and we are thinking about proceeding in this course, what you think about that, versus telling us, this is what we've done. that is notification not consultation. and secretary -- when wendy sherman and secretary cohen were here in the past, -- it creates concerns about when you raise alarm bells, and then you harold -- herald it is part of your ability to get iran to negotiate. aspirations, how to strike a deal with north korea.

realism is that they ended up being a nuclear-armed mistake. that is what we are trying to avoid. >> thank you for all of her efforts to bring us to this point. i look forward over the next few days to see if there is some common ground to address the consultation and congress possible role ultimately. i do want to say one thing. i know there have been a lot of discussions about bibi netanyahu's prop at the u.n. it is fair to note that wish -- that with additional research that iran has done, they are moving way up the food chain in terms of centrifuge development. they can move so much more quickly from zero to 90%. i think you are all aware of that. that is the concern we have. the research and development component, the things they are doing to move rapidly towards being able to reach 90%.

let me give a few closing comments. i want you to be successful. i wake up every day wanting our nation to be successful in every endeavor. i think i have shunted this administration my desire to work towards common ground to try to solve problems. i want these negotiations to be successful. i think our concerns are -- i had one of the most impactful meetings, along with a number of people on the committee, in israel in the last couple of days -- the concerns are, as you look back over the history of the last 10 years, iran has stayed here, and the p5 began here. as we have progressed, the p5

have continued to move towards their position. i would just argue that having congress as a backstop as you enter these final steps, having congress as a backstop, somebody you do in fact not only have to consult with but seek their approval would be somewhat of an anchor to keep us from continuing to move towards their position. i think would be very typical for you to say that there hasn't been a continual movement towards their position. you look at where we began with the human security resolution. you look at where we began with us potentially agreeing with them to having enough centrifuges to serve their "practical needs," which every scientist has said was about 500 centrifuges. i think you would tell me we have moved way beyond that. congress can be an excellent backstop to you as you are

moving down the road. i think senator kaine probably expressed it better than any of us. when we entered into these agreements that senator menendez was a part of, i don't think anyone in giving you the national security waivers ever thought the president was going to suspend them until the end of his term. i don't think anybody ever thought that. the fact that we know that if you do that the entire sanctions regime falls apart, and i have tremendous respect for secretary cohen -- these take a long time to put together. to have to come to us on the front end of the deal before you dismantle the entire regime is an incredibly important step and i hope you will consult with us. we hope we will come to an agreement that takes into account some of the nuance you pointed out early.

just stiff arming and saying, after the role that we have played, to basically put the international community at the table to stiff arm and say, we don't want to play a role, is totally unacceptable from our standpoint. the supreme leader, we keep referring to him, and as we negotiate, we seem to be more concerned about the supreme leader's position. the supreme leader has said publicly that one of his major concerns is that iran enters into an agreement, and somehow over time, congress changes its mind. we have a presidential race coming up. i assure you that the iran component will be a major part of the next presidential race. i believe that to be the case. since there is so much concern about supreme leader and him walking away, i would just say that congress's approval of the

deal to me would be reassuring that whatever deal that you've done would stand the test of time. i would encourage you to sit down, to walk through with us some of the concerns you have about timing, but i would say that general movement today is towards congress playing a role. just stiff arming doesn't take us to a place that meets the test that both of us need to meet. i would encourage you to sit down and talk with us. we thank you both, despite our concerns, for your service to our country. let me just give some formalities. the record will remain open until the close of business friday, including for members to submit testimony. we ask witnesses to respond is probably as possible. the responses will be made part of the record. this hearing is now adjourned.

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good morning.

this morning i want to talk a little bit about what the president talked on last night, and that was flexibility in the workplace. >> we couldn't agree with you more that we need to be helping working moms and dads. so we have the right goal. he just has the wrong approach. more mandates on the work force is not the way to go. we've seen this with obamacare and how it has hurt job creation rather than bring along more jobs in this economy. you know, we can't legislate another hour in the day. we can't. but what we can do is give moms and dads the opportunity to make choices about their time. that's why today i'm introducing the working families flexibility act and in fact i'm headed over to the senate side to join with senator mike lee who will also be introducing the companion bill in the senate. this bill is is about allowing hourly wage employees in the private sector to choose

whether they want overtime or to convert that to paid time off. i'm a working mom. i certainly understand that time is of our most valuable asset and so we want to give parents in the private sector who may be taking care of young children but also could be taking care of aging parents at the same time. this is about letting them determine what to do with their overtime. this can already be done in the public sector and this simple amendment to the fair labor standards act would allow private employers to do the same. again, the president has the right goal. he has the wrong approach. more government mandates is the last thing that we need. but flexibility in the workplace is a good thing for working moms and dads all over this country. >> well, thank you, all. listened to the president last night. i believe he missed an opportunity. i listened to a lot of the old ideas, the old strategy, top down instead of bottom up which this country believes in.

i listened to four veto threats at a time when he wanted to work together. i saw places where he could. cybersecurity. hire more vets. we already have a bill that passed the house and is moving forward. i believe if you listen to the american people on priorities, there is you a a new poll that came out printed even before his speech that same, number one, 85%, creating jobs. priority for all of us. when you listen to the rosey numbers that president gave, he skipped over the participation rate when you look at unemployment. it is the lowest point, 62.7%, since 1978, time of jimmy carter. but what does participation rate mean? that means those are the people in this economy that have given up. they've given up looking. that means they've given up on their dreams. they've given up on their future. that's why creating jobs should be number one and that's why it is with this congress.

second is the feeding and dismantling isis. third is reducing the deficit. $18 trillion is our debt. on, passing legislation to secure the border with mexico, 58%. we'll have a bill marked up today and move that next week. at the bottom of the numbers closing gitmo and addressing climate change. i think it's time for a new beginning with a new american congress that we focus on the priorities of america, putting us back to work and putting us on the right track. no more bottom down. no more top down but bottom up. >> congress has been working for a few years now on cybersecurity. you heard the president last night talk about cyberattacks. this is a real opportunity where the president can work with congress to further solve this problem. we passed legislation last year to increase the sharing between federal agencies as it relates

to cyberattacks. that bill was actually signed. but as you can see, there are still threats, both in the government sector and in the private sector, where -- whether it's individual hackers or foreign governments that continue to attack our networks. you've seen millions of americans have their data and their privacy placed at risk. so congress is continuing this year to work on legislation to increase the ability for private sector and government sharing of the attacks that are out there, the real threats of cyberattacks. while also making sure that individual privacy is a very top priority and so there's a real opportunity where we got an opportunity for the president to work with congress to solve this problem and we welcome his participation. i'm glad it was something he mentioned last night because it's a real threat to millions of americans and those threats occur every single day. >> as i listened to the president last night, i couldn't help but think of the many hardworking americans that

continue to have to tighten their belts because costs are going up, whether it's food costs or health care costs or their rent. moms and dads that are having to work double-shifts just to pay their bills, make ends meet, college graduates that are saddled with more debt than ever, that have high unemployment, continue to struggle to find jobs. and last night i'd hoped to hear from the president that he'd stand up for them. but instead so much what i heard was he was standing up for washington, d.c. he was standing up for the old approach, the top down outdated bureaucratic approach that comes from washington d.c., rather than a vision that is focused on a bottom up approach, an open, transparent approach that empowers people, individuals, families and creates a healthy economy. see, we agree with the president that middle-class families continue to struggle. but what they need -- what they need is to be empowered.

they need to be empowered with lower taxes, lower costs and more opportunities. that's what we're going to be promoting in america's new congress, more job opportunities and the legislation that we passed today is just the beginning. we want to improve people's lives. we want to grow america's economy, not washington, d.c.'s economy. >> several years ago i had the honor of serving as president of the national association of state treasurers, where we all worked tirelessly to expand and improve college savings tools so families would have the opportunity to send their kids to the institution, higher education of their choice. congress created section 529 to help middle-class families plan and save for their children's future. and there's no doubt about the popularity of these plans. ever since the earnings on the

withdrawals for college expenses became tax free back in 2001, one million account holders have turned into 12 million. now, president obama wants to turn back the clock and further burden hardworking families with new taxes. middle-income families that have worked hard and saved to send their children to college should receive our support, not a tax bill to pay for his agenda. taxing college savings plans as the president has pushed for and likely will again tomorrow in a speech in my district in kansas, will only lead to less savings for middle-class families. it will remove the incentives for families to save for themselves. and i hope the president's working -- willing to work with america's new congress to fix our broken tax code and expand opportunities for all american families.

>> good morning, everybody. all the president really offered last night was more taxes, more government, more of the same approach that has failed the middle class for decades. these just aren't the wrong policies, they're the wrong priorities. and growing washington's bureaucracy here instead of helping to grow our economy and to helping grow opportunities for middle-class families. there's a better way. we need to fix our broken tax code, balance our budget replace the broken health care law with solutions that lower costs and protect jobs. veto threats and fantasy land proposals from the white house will not distract the people's house from the people's priorities. another priority is protecting the united states and our allies overseas. that's why i've invited prime minister of israel benjamin

netanyahu to address a joint session of congress on the grave threats of radical islam and the threat that iran poses to not only the middle east but frankly to the world. american -- america and israel have always stood together. we have a shared cause. we have common ideals, and now we must rise to that moment once again. >> speaker boehner, last night president obama said he'd like a new authorization military force agreement. is that going to happen? >> i would expect the president's going to send an authorization to the congress. i expect that we will have hearings on that and that we will in fact have a debate and a vote on it, the time yet to be determined. >> spring? >> surely. >> mr. speaker, did you consult with the white house before inviting prime minister netanyahu? and secondly, is it

[inaudible] on an issue like iran when you know he's very much opposed to what he wants to do? >> i did not consult with the white house. the congress can make this decision on its own. i don't believe i'm poking anyone in the eye. there is a serious threat that exists in the world, and the president last night kind of papered over it. and the fact is that there needs to be a more serious conversation in america about how serious the threat is from radical islamic jihadists and the threat posed by iran. >> mr. speaker, you have said for years that tax reform is one of your top priorities. the president said last night it's one of his top priorities. where do you put the chances that congress happily accomplishing tax reform this year instead of talking about it? >> we'd love to do tax reform. you hear the president last night call for raising taxes again.

now, if he wants to raise taxes, it's going to make it very difficult for us to come to some agreement how we're going to reform our broken tax code. >> last question. >> [inaudible] >> i do expect we're going to have hearings on iran sanctions legislation. timing yet to be determined. thanks. >> what's on your tie? >> "washington journal" is live each morning at 7:00 a.m. eastern on c-span.

>> here's some of our featured programs this weekend.

>> yesterday, larry hogan was sworn in as governor of maryland. he is only the second republican to host the post in 45 years. at his inauguration in annapolis he talked about state spending, tax fairness, and improving the state's business climate. he's introduced by new jersey governor chris christie. this is 25 minutes. >> good afternoon. it is a tremendous honor for me to be here today and i want to personally thank my friends, governor hogan, his wife, and the rest of their wonderful

family for allowing me to share this day with all of you. it is a huge day for their family and a great day for the state of maryland. [applause] when i look at the state of maryland from the state of new jersey, all i see is potential. i see a beautiful state, from the mountains in western maryland to the beaches in ocean city. i see a place with the kind of natural resources that most other states can only dream of having access to. i mean, we do. but other states can only dream of having access to. [laughter] i see some of the hardest working, best educated people in our entire nation. who are filled with the desire to build a better life for

themselves, their families and their children. and i see a man in governor larry hogan who is ready willing and able to lead this state into a bright new future. [applause] a future where the people of maryland get to keep more of what they earn, a future where maryland and its people are free to live up to its unlimited potential. as you all know, governor hogan is willing to do the hard work that it's going to take to make maryland the best state that it can possibly be. he doesn't claim to have all the answers, but i know that he knows how to bring people together, because he's been doing it his whole life. i'll tell you why i like larry. i like him because he stands up strongly for his principles. i like him because he's blunt and direct. and he says what he believes. [applause] yeah. but he also knows that his job as governor is to get things

done for the people of maryland because that is what maryland needs the most. you see, as long as you stick to your principles, i do believe that compromise and consensus are not dirty words. [applause] because to accomplish what you need to accomplish here in maryland, you're going to need someone who can bring people together, someone who isn't afraid to be known as bipartisan. that's exactly the person you have in governor larry hogan. [applause] it's going to take everyone working together for a common purpose to make maryland the best state it can be. governor hogan, lieutenant governor rutherford have set a great example, a great example of what can be done with the strength of ideas and i know they'll continue to do that well into the future. i have every confidence that maryland is in good hands and i

look forward to coming back here four years from today to watch governor hogan get sworn into his second term as governor of maryland. [applause] ladies and gentlemen, it is my high honor and great privilege to introduce to you my friend and your friend, the governor of the state of maryland, governor larry hogan. [cheers and applause] >> thank you. thank you. you all look great out there. they said it was going to be a cold day in hell before we elected a republican governor. [laughter] thank you all, thank you very much. governor christie, thank you for being here. thanks for your tremendous support. and thank you for that very kind introduction.

to my wife, my daughters, my entire family, it is because of your incredible love and support that i am able to stand here today. [applause] i'm privileged and proud to have lieutenant governor rutherford by my side. he's been more than a runningmate, he's a friend and i am honored to serve with him. [applause] governor o'malley, thank you for your gracious cooperation during the transition and for your years of public service. [applause] lieutenant governor brown, thank you for your service, not only to the state, but to our nation. [applause]

to my good friends, governor ehrlich and lieutenant governor steele, thank you for your leadership. it was an honor to serve in your administration. [applause] governor hughs and governor mandel, thank you for all you have done for maryland. [applause] senate president miller, speaker bush and members of the maryland general assembly, we have great challenges ahead of us, but i look forward to working together with each and every one of you, along with comptroller, treasurer attorney general, chief judge and the other members of the judiciary, senators and members of our congressional delegation and all the local elected officials and other dignitaries. thank you all for being here for this historic occasion. [applause]

most importantly, i want to thank the citizens from all across our state who put aside party politics and who came together and voted to change maryland for the better. i'm grateful because i know something about putting aside partisanship in order to do the right thing. 40 years ago a maryland congressman, a republican, sat on the house judiciary committee during watergate. and the entire world was watching. would this man be willing to buck his own party, his own president, to do what he thought was right for the country? despite tremendous pressure, this statesman put asideut aside partisanship and made the tough decision and he became the first republican to come out for the

impeachment of president nixon. that man was my dad, former congressman lawrence j. hogan sr. wh who is here with us today. dad put aside party politics and his own personal considerations in order to do the right thing for the nation. and i'm going to get emotional now. and he taught me more about integrity in one day than most men learn in a lifetime and i am so proud to be his son. [cheers and applause] ladies and gentlemen, today we are gathered in front of our beautiful state house, which has been in service since 1772. a few steps from where i'm standing is where general george washington resigned his

commission. 231 years ago, the revolutionary war ended right here, inside this state house, with the ratification of the treaty of paris in 1784. and just a few miles from here when the future of a fledgling nation was in doubt, francis scott key penned the star spangled banner during the war of 1812. for maryland and for our nation, this is a place where great things begin and where great things are accomplished. \[applause] today against this historic and majestic backdrop, maryland once again starts a new chapter in our long, proud history. today's inauguration marks a new beginning for maryland and the limitless possibilities before

us. i am a life long marylander who loves this state. every great experience, every great memory, every great moment i have ever had in my life has happened right here in maryland. and it is such an incredible honor to be standing before you today as the 62nd governor of the great state of maryland. [cheers and applause] i am truly humbled and deeply grateful for the opportunity to serve my fellow marylanders. and i vow to work tirelessly every single day to prove worthy of this great honor that you have granted me. today we celebrate a new beginning for maryland remembering our past while striving for a better and more promising future. the question isn't whether maryland is a great state. the question is, what will we do, all of us, to reinvigorate this great state that we all love?

what will we do to ensure that our future is better than our present and our past? i believe that the time has come to cast aside the status quo and to come together to build a better future for our state and all our citizens. we must set the bar higher. we must set the bar higher and create a bolder vision of the future. let's create a maryland that is thriving, growing, innovating and is responsive to the needs of all its citizens. let's strive to make maryland the best place in america to live, work, raise a family start a business or even to retire. let us renew -- \[applause] let us renew our sense of optimism and make maryland a place of unlimited promise. together let's make maryland a place that we can all be proud

of again. [applause] today i am reminded of those brave marylanders who first came to this land seeking freedom and opportunity when they landed in st. mary's city in 1634. while the challenges facing us today are different, i know that the courage and the spirit of marylanders is the same. we seek the freedom to compete without the undue burden of high taxes and bureaucratic regulations which make us less competitive. we seek opportunities to build better communities, better businesses and better lives for ourselves, our children and our children's children. and most of all we cherish the freedom and opportunity to decide our future. and today we celebrate that freedom and opportunity. what i envision for maryland is

not just an economic and fiscal recovery, but a rebirth of our spirit and a renewed commitment to our common purpose. the citizens of maryland expect great things from us and they deserve great things from us. [applause] too often we see wedge politics and petty rhetoric used to belittle adversaries and to inflame partisan divisions. but i believe that maryland is better than this. our history proves that we're better than this. it's only when the partisan shouting stops that we can hear each other's voices and concerns. i am prepared to create an environment of trust and cooperation, where the best ideas rise to the top based upon their merit, regardless of which side of the political debate they come from. no problem faces us that hard

work, honesty and courage cannot solve if we work together. ladies and gentlemen, we can improve the tone in annapolis and we will. \[applause] and we can move towards a commonsense solutions-based government. the problems we face are great. but so is our resolve to fix them. president kennedy once said let us not seek the republican answer or the democratic answer but the right answer. in that spirit, let us sit down together and come up with real bipartisan, commonsense solutions to the serious problems that face us. that's what the people of maryland voted for. it's what they want and it's what they deserve.

[applause] the history of our great state is rich and deep and our commitment to freedom and justice has always been our strength. in 1649 the maryland toleration act, one of the first laws that granted different faiths the right to freely worship, was enacted. since then, over the many years, maryland has blossomed into a state wonderfully defined by our vibrant culture of racial, ethnic and religious diversity. in our hearts, marylanders are hard wired for inclusiveness. it's who we are. it's our founding principle. it's a part of our identity and it's our greatest strength. our culture of tolerance and

mutual respect must also extend to those with whom we happen to differ on politics. today is not the beginning of an era of divided government. today is the beginning of a new spirit of bipartisan cooperation in annapolis. \[applause] there is so much that unites us. a love of our state, a commitment to fairness and a desire to be economically strong and successful. and to those who would divide us or drive us to the extremes of either political party, i remind you that maryland has been called a state of middle temperament. our politics need that middle temperament as well. the politics that have divided our nation need not divide our state. [applause] in the days ahead i ask all marylanders to seek that middle ground, where we can all stand together. i recognize that the events of 2014 stirred strong feelings throughout the nation. but in keeping with the moderate tradition of maryland, we express our passions in a positive, open, respectful and civil way as concerned

neighbors. it's one of the many reasons i'm proud to be a marylander. our greatest challenge has always been reaching the high expectations set for us by our founders. that is why we will always keep trying, always keep growing and why we shall never fail. [applause] ed in the end, it isn't about politics. it's about citizenship and the ability to understand the difference, that is what it means to be a marylander. maryland's greatness is in her goodness. partisanship should never denigrate the unique legacy entrusted to us by our founders. to my friends across the aisle

i assure you that partisanship will never play a role in my decision making. everything we do will be guided by four commonsense principles. first, fiscal responsibility. our state government must provide essential services, yet still live within its means. we must run our state government more efficiently and more cost effectively. [applause] second, economic growth. maryland has an educated work force, world class universities and colleges, great community colleges and public schools. we have the beautiful chesapeake bay, the port of baltimore and a great location in the heart of the midatlantic region. we must leverage these amazing assets to transform maryland into a place where businesses can flourish and create more jobs and more opportunities for our citizens, starting today let me say loudly and clearly, maryland is open for business. \[cheers and applause] third, reform. we must improve our state government's ability to be more responsive to and better serve and represent all our citizens.

fourth, fairness. we must restore a sense of fairness and balance for maryland's hardworking and beleaguered taxpayers in order to rebuild our forgotten middle class. we must get the state government off our backs and out of our pockets so that we can grow the private sector, put people back to work and turn our economy around. [cheers and applause] ladies and gentlemen, we can accomplish these things and together we will. this is our chance to build a state government that works for the people and not the other way

around. to accomplish these objectives will require leadership. i'm not talking about any one leader. it will take many, all of us working together, rolling up our sleeves, acting with mutual respect and doing our jobs for the people of maryland. it will require listening, educating and bold actions. and it will take the courage to do things differently. a commitment to doing things differently will be challenging. but i lost the teleprompter. it will be challenging. [laughter] but it will be worth it. we're worth it. and more importantly, maryland is worth it. [cheers and applause] 100 years from now, i want marylanders to say that this was when maryland's renaissance began. [cheers and applause]

ladies and gentlemen, i stand before you today full of hope, hope for our great state, hope for our people and hope for our future. i want maryland's future to be brighter than its present and brighter than its past. it can be and it will be. before my father cast his vote on the impeachment committee 40 years ago, he quoted president lincoln who said, we cannot escape history. my fellow marylanders, today once again we cannot escape our history and we cannot escape our future. it's out there waiting for us. let us show our fellow marylanders that government can work, that we can work together, that change is possible and that maryland can live up to the promise of our founders. let us always act worthy of the great task entrusted to us to

renew and advance our great state. let us appeal to the better angels of our nature so that we can achieve the great and shining promise of maryland. ladies and gentlemen, we can change maryland for the better and together we will. thank you, god bless you and god bless the great state of maryland. >> the u.s. conference of mayors meets in washington. the president speaks at the economic forum. followed by the washington journal with your phone calls.

>> love coverage of the freedom summit begins at 10:00. speakers include the presidential candidates, rick perry, scott walker, and chris christie. as well as the 2008 by's presidential nominee, sarah palin. >> andrew keen, the author of the internet is not the answer. >> in the industrial age, people want to work in the factory. they were paid and do it they want unpaid labor was working 24

hours a day. worse than that, what the companies were doing was learning more and more about what we publish from the ideas and what we do not say. they are transforming us and repackaging us at the product. we are being sold. it is the ultimate scam. it is the perfect hitchcock movie. >> the conference of mayors is holding the winter meeting with over 300 mayors across the country and attendance.

the conference president, kevin johnson announce the relationship between cities. we will hear from frank luntz. this is one hour. >> good afternoon. i hope you are enjoying the meal. i want to say how excited we are to be here for the meeting of the u.s. conference of mayors. i and the mayor of sacramento and the president of this fine organization. it is so awesome that so many of you have flown from so many places to be here. it is an honor to introduce the conference leadership. i will start on my left. usually on my right, politically and otherwise mick cornett.

let's give him a round of applause. our vice president, stephanie rawlings blake will be joining us. i want to a knowledge of the past presidents. please give them a round of a applause. and, tom cochrane is out there and handling the business. we cannot thank tom for his leadership -- we can now thank tom for his leadership. let's give them a round of applause. as a reminder, all of the sessions are alive and available on demand. for those of you who need toon twitter,

use the hashtags. i have two housekeeping items. you know the president will be visiting and the vice president will be joining tomorrow. you have to make sure that you go through the security. downstairs, you go through security. once you get to the second floor, you'll be able to move along freely. secondly, please take a look at your name badges. if you have a star you have the clearance you need to get to the white house. if you do not have a star you need to see the u.s. conference of mayors staff today to make sure you're not left out of our white house visit. yes, you need a gold star to get in.

let me thank the sponsors for this year's winter meeting. i'd like to thank -- let me get through all of the sponsors and give them one round of applause at the end. i want to thank wells fargo, our 2015 winter meeting title sponsor, american beverage association, americans for the arts, black and beach corporation, engine research foundation, google, hdr, jpmorgan chase and company lindbergher, sampson llp motorola solutions, target corporations, uber technologies, the walton family foundation. let's give all of our sponsors a round of applause. i'm also pleased we have over 50 new mayors registered for this winter meeting. let's give our rookie mayors a round of applause. to help introduce and welcome

them to the organization, we're going to show all of their names behind me. and if we missed or left out a mayor, i want to apologize in advance. all right. all right. all our new mayors in the audience, please stand up.

all right. all right. all our new mayors in the audience, please stand up we need to see who you are. [applause] we know that this group will be instrumental in defining our priorities and helping this organization go forward. i am now very pleased to bring to the podium one of those rookie mayors, she reigns from the great city, the district of columbia, mayor balder served as a city council member. the conference has been fully supportive of full voting rights for the district of columbia.

mayors, let's give a round of applause for mariel bowser. >> thank you. thank you. well, good afternoon, mayors. and welcome to your nation's capital capital, my hometown our capital city, washington d.c. and thank you mayor johnson for your kind introduction, but most importantly for your leadership of this conference and your great city. i am honored to stand before you as mayor of the district of columbia and bring you greetings on behalf of all 660,000 of us. as a new mayor, this is my first time at the u.s. conference of mayors, but it won't be my last. i look forward to working -- welcoming you every january to our city.

here in washington, as you know, we are a little bit different. we're a city of county and state all rolled into one. we are a city that is growing and certainly on the move. you probably heard that we're adding about a thousand people every month to d.c. that we're attracting businesses at almost an equal pace, we're focused on technology and innovation in our city, and becoming a healthier, greener and safer washington, d.c. we're investing in our future every step of the way by building highways, sewer systems, schools, to ensure that our children are inheriting an even better city. and we are most importantly investing in our people. i just left one of our schools over $100 million investment where the chancellor and i announced a focus on young men

and boys of color. and i want to acknowledge another great mayor, in addition to you, k.j., our friend and former mayor of the district of columbia adrian vinci. give him a round of applause. and i do that because as a new mayor i know i'm building on quite a lot of the progress that we have been able to make in our city, from leaders, like adrian and many others, who have worked to build our city to where we are today. we know as mayors we don't have the luxury of kind of wringing our hands, but we're charged by our residents to get things done. and we need to get big things and small things done each and every day. we set aside partisanship to deliver for our residents and we have to lead by example. and just like kevin did in sacramento, when he secured $34 million in state and federal funding, to strengthen police, fire, and emergency preparedness in sacramento, we do what we need to do to protect our

communities. just like mayor nutter was able to do when he increased high school graduation rates, and enhanced college readiness in philadelphia. we do what we need to do to ensure our children's success. like my sister mayor to the north of us, stephanie rollins blake, who closed baltimore's largest deficit in modern history. we do what is needed to be done to balance our budgets, and govern in a fiscally responsible way. as demonstrated by so many mayors in this audience, we set aside politic and focus on the future of our cities. the gridlock in congress does not reflect how we operate in our cities. across this nation, under the leadership of mayors in this room, we get things done.

and we understand that while our cities are on the rise, we still have major challenges to overcome. while we have growth and wealth, we also see staggering inequality. affordable housing is out of reach for too many, and too many lack the skills necessary to get good paying jobs. my goal, our goal is to take those challenges head on. like many of you, i believe in making bold and pragmatic plans and executing on them every single day. during this conference, i look forward to exchanging best practices, sharing ideas, and leveraging our resourcefulness as an organization. we will continue to get things done for our city, and i pledge the support of the district of columbia to this organization to get things done for all of us.

so i want to thank you, again, for being in washington. i hope while you're here that you will enjoy the restaurants the museums, arts and culture available to you in your capital city. welcome, everybody. [ applause ] >> all right. thanks, mayor. appreciate those comments. we will certainly enjoy the capital while we are here. i want to thank wells fargo for being our title sponsor for this particular winter meeting. this is a major commitment to our organization, so, again, please join me in giving wells fargo a round of applause. mary coppin, executive vice president of wells fargo, is with us today. mary is head of customer excellence for wells fargo home lending. in this role, she collaborates with leaders across these;h entire wells fargo enterprise to deliver differentiated customer service to every wells fargo customer, every day.

mary will be sharing an important announcement. mary, welcome to this meeting. we thank you for your commitment. come on up, mary. [applause] >> thank you, mayor johnson, for that warm welcome to your conference and washington, d.c. i want to personally ask you, i did travel here and i have three children back home and one of them is a 6'3", 15-year-old aspiring basketball player who has no clue what his mother does, but i think if i took a picture with you, he might think whatever it is i do, i'm pretty cool. [laughter] [applause] >> thank you. it truly is my honor and privilege to be here with all of you today and to be provided the opportunity to share just briefly a few comments about the exciting and energizing work happening across our country and in your cities.

from strategies that stabilize revitalize local neighborhoods to those that create and support jobs -- and especially those that help support our veterans may i commend you all for your efforts and leadership you are in this room -- it is just incredible what you have been doing as we have worked to turn around our country, our communities, our cities. wells fargo is appreciative of the opportunity we had to partner with you in our alliance and stands ready to continue to support you with the efforts needed to stabilize, rebuild and grow the communities in which we live and work. over the last few years, our collaboration with the united states conference of mayors has, of course, first centered on the practical needs of our city sies -- her cities. but our alliance has become so much more as it established a solid foundation for us to build on into the future. together, we work defectively on

-- work effectively on important issues related directly to the nation's crisis. they were practical. they were focused on foreclosure prevention, property maintenance and care, and promotion of responsible home ownership. together, we shared concerns, we created plans from best practices, and then we developed the necessary unique actions needed within your communities with answers directly provided to the constituents at our outreach events directly held in your city. we're very proud, energized and excited about our neighborhood lift program. it is one that helps promote affordable us susand sustainable home ownership. i would like to share with you a brief video from one of our lift events, i think held in new orleans, and one of the grant recipients and the testimony.

please run the video. [video clip] >> like many who visit new orleans, valerie never got around to leaving. originally from france, she's called the big easy home for more than a dozen years now, living in apartments in some of the city's historic neighborhoods. >> i came to new orleans out of curiosity. and just fell in love with the -- renting was easy, affordable. so i was a happy renter for years. until katrina hit. and then post katrina situation was a lot different. we had landlords, more than doubling our rent overnight. and that was a wake-up call for me. >> she decided to buy a house. and as a single mom, wanted a duplex or double as they're known in new orleans so they could earn rental income to help with mortgage payments.

>> i also wanted a real neighborhood where you can walk to places and also something where i would feel safe living with my daughter. >> valerie found this barge board house built in the late 1800's from pieces of the barges that sailed the mississippi and once again fell in love. but knew the renovations it needed would push her financial resources to the limit. >> it is beautiful old house in new orleans, but there was some structural work to do, reinforcing the outside walls, foundation work. i had to put in central ac. and a lot of other things that needed to happen. >> so when valerie heard about the neighborhood lift program, which provides home buyer education and down payment assistance, she was immediately interested.

>> i contacted the wells fargo representative who guided me through what i had to do to make it happen. the program allowed me to have an extra $15,000 that i don't have to pay back that i could use toward the renovation of the house. and in five years it is forgiven, so it is just equity for me. >> since 2012, lift programs, a public private collaboration between wells fargo and the nonprofit neighbor works america have helped make more than 8,000 people like valerie become homeowners in locations hit hard by the economic downturn. now with the renovations complete, she and her daughter sophie are enjoying their new neighborhood and their home. >> i like the backyard with my tree house. >> it is a piece of new orleans history. so, really, excited about that. i have a tenant. i have a very comfortable situation financially. it is not the perfect place, but

just knowing that this is ours and nobody will tell us to pick up and move, this is a good feeling. [applause] >> thank you. as i said, we believe in programs such as neighborhood lift that we believe have a real impact to the communities and families. while we're proud of our accomplishments and the housing market does appear to be improving, wells fargo understands there is a lot more work to be done. we believe it is not time to take a step back, but to continue to move forward and bring best practices that deliver tangible benefits directly to your constituents. wells fargo is a company and knows this. we're only successful when your communities are successful. when customers and constituents can afford and sustain home ownership and when the communities in which they live

continue to thrive and grow. so as i stated a moment ago, our work continues and last summer wells fargo committed to a new three-year, $3 million grant program through our wells fargo foundation. and today i have the opportunity, i'm delighted to share with you we're ready to begin encouraging nonprofits in your communities to apply for this new program. it is entitled community wins on your table are the flyers about the program. it is aimed directly at providing support to local nonprofits who engage in important efforts such as workforce development, cleaning up neighborhoods, and renovation of housing. charlie hebdo it will be $1 million per year, awarded through a competitive application process, that is going to be administered by the united states conference of mayors. these grants will assist cities of all sizes, and we hope that you'll want to be educated and find more information about community wins by the flyers or you can see our booth outside.

so in closing, to keep my remarks short and brief, i hope all of you see our work together is both practical and inspirational. and as we continue to expand our programs and our alliance with you, we know we can have and will achieve great things into the future. thank you so much for the opportunity to speak to you today. [applause] >> ladies and gentlemen, it is my pleasure to rise and to announce this is a historic moment, a defining moment for our organization. last year -- last night's state of the union by the president was a command performance. you asked who commanded it?

article two, section three of the constitution of the united states provides that the president must give a state of the union. in 1790, george washington gave the first state of the union and in a provincial city called new york. thomas jefferson said i will not sit on a throne like a king, i will send a written message and a clerk read the state of the union to the congress until 1913 when woodrow wilson said, i'm going to do it. in 1934, franklin delano roosevelt dubbed the words "state of the union," taking them from the constitution. we know that governors give state of the states address. we know that mayors give state of the cities address. we know that universities give state of the university address. and we know that tom donahue last week gave the state of the business address. but ladies and gentlemen, i'm

here to tell you, for 82 years no president of this organization has ever stood before its members, republican and democrat, and given a state of the cities address. and so today, we are commanding our president and all presidents forward from 2015 to appear before you and your members and give a state of the cities address. we thank -- [applause] please know that is a vote of approval. [laughter] we thank our current president for establishing this initiative. it is very important as we go forward. ladies and gentlemen, it is my distinct honor and pleasure to present to you, to give the 2015 state of the cities address, the

one, the only, from sacramento california, the 72nd president of the united states, kevin johnson. [applause] >> thank you. that was a heck of a buildup. [laughter] i just want to say, again, how humbled i am to be here before you today. and if you're a mayor, you know when i'm what i'm talking about. we have great jobs, no job we would rather have in america and to be able to come together and gather with our colleagues a few times over the course of the

year is really, really special. so it is an honor that i stand before you today, tom, thank you, again, the u.s. conference of mayors, staff, i've also already thanked the past presidents as well as our second vice president. you guys do an amazing job and this is just a heart felt thanks to all of you for what you do. so, mayors, give yourselves just a round of applause for the great work you do. [applause] so i'm not one for long speeches. let me jump in. last night, president obama addressed congress and the nation to say that the state of the union was strong. today we convene our -- at our 83rd winter meeting of the u.s. conference of mayors and as your president i'm here to say that the state of the union is strong because the state of our cities is strong.

[applause] i'm halfway through my presidency. i got a chance to give my first address in dallas. and i want to thank really quickly the mayor of dallas, mayor rollings, for your leadership. stand on up. [applause] and we're so glad that you decided to run again. we were all going to send our posses out in security to make sure we twisted your arm and got you to run, but you did the right thing. we wish you the best on that. i also want to take a moment and thank a past president, a past president, ran for governor, but he's a mayor of all mayors, is scott smith here? mayor smith, please stand. [applause]

when it began in dallas six months ago, came before you and introduced a concept of cities 3.0, a new era of american cities. at the heart of the vision is a fundamental idea that cities of yesterday are not the cities of today. which means that we must function and be governed in a more innovative, and efficient and effective manner. cities were built around ports river, freight rail, transportation routes. they served as the center of commerce and trade. the second generation of cities, or cities 2.0, came much later the industrial revolution. these cities were marked by factories, big industries, smokestacks, automobiles, and electricity electricity. in cities 3.0, cities have become the leaders, the hub of innovation, entrepreneurship and technology.

they are the epicenters for economic progress. to adapt to our new reality, we must practice what i call open source leadership. which means we have to be pragmatic problem solvers who look for common sense solutions regardless of where they come from. democrats, republicans, labor, business, doesn't matter, to us, we want to just make a difference in our community sies. our focus must be meaningful and measurable so that the promise we make to our cities becomes a reality of our cities. today i want to expand on that vision of cities 3.0. a 3.0 city is how we interact with the federal government and that must be done in a different way, in my opinion.

i begin with a simple truth. as a nation, we face many challenges. washington has not stepped up to solving challenges. powerful forces are transforming the way we interact, in terms of our jobs, our neighborhoods and our cities. consider the following -- globalization pits american workers against the world. new industries are replacing old manufacturing, while new technologies threaten to automate their jobs. income inequality is eroding the middle class, making it harder for hard working taxpayers to support a family, to own a home and get a good education. major demographic changes are bringing very different cultures into closer contact while baby boomers are entering the retirement age, which is straining pension and health care budgets. climate change threatens our homes and infrastructure. and what has emerged to be the

most critical issue of the day and certainly of my presidency is a growing gulf of the mistrust between communities of color and law enforcement in many of our cities. we are a nation built on trust. when that trust is grown, we -- that trust is broken, must find ways to rebuild that trust. clearly the challenges are significant, and it is clear the federal government has been unwilling or unable to design and implement meaningful solution to these problems. so what does that mean? it means they landed firmly on the doorsteps of our nation's mayors. that means that being a mayor is no longer just about making sure the trash is being picked up or buses are running on time. today, we are the ones grappling with these very big real big picture challenges. the good news is that the american people generally think that mayors are best suited to do this work.

as noted polster frank lunts will tell you, washington and americans have a perspective that may be different. americans want washington to do less, and want cities to do more. the u.s. conference of mayors and zogby, we released a poll today. think about this, mayors. nearly half of the american public believes that cities are on the right track, compared to only 29% who think the nation is on the right track. although america's trust in elected officials generally is not something to write home about, but mayors rank higher among the public than the president, a governor, congress, and their state legislature. that means we rank top as it

relates to our constituents and who and where they have trust. the federal government of states has the capacity and mandate to confront our global challenges. but right now, they are out of step and out of touch with people and the new metropolitan realities that we all face. so it is up to us. this is our opportunity to lead, to say what we mean and to mean what we say. it is up to us to deliver the results, our citizens deserve. as steve jobs said, it is time for us to think different. so what does that mean, mayors? it is time for a new understanding between the local and national powers. city simply cannot be expected to be passive players waiting around for resource and direction that may or may not materialize. these dynamics need to be flipped on their head. we need to organize differently to deliver better results. we're modernizeing the way we run our cities. we have to modernize the

relationship with the enteral government. we need what i'm calling a new federalist contract that recognizes the areas that require federal attention while leveraging and strengthening what truly drives the prosperity in our nation. [applause] mayors, you know all too well, these ideas have been written about extensively in a book i often cited, the metropolitan revolution. bruce katz and jennifer bradley. is bruce here? stand on up, let's give bruce a round of applause for his leadership. [applause] so what exactly does a new federalist contract mean? we desperately need our federal government to lead where it must. only the federal government can act with the national vision

direction and purpose because some of the problems that we face transcend local borders and require federal action. metropolitan areas aren't able to provide a robust safety net. the safety net provides stable economic foundations upon which everything else grows from. metros can't overhaul our enormously inadequate immigration system. metros lack the resources to fully fund economy transforming research and development or new infrastructure without federal help. in a world of climate change cities can't change the behavior of companies and consumers. those are the areas where the federal government must lead because they reflect the realities of global forces that dwarf states and local capacities. the federal government must take the commitment forward and they must act now before it is too late and they have to do so aggressively. while the feds are working on those issues, we need our national government to empower cities where it can.

think about this. we said this over and over again, we want the federal government to empower cities where it can. because american cities are the metropolitan areas, we're the ones who can deal more efficiently and effectively with the challenges before us. it is simple common sense that one size cannot and does not fit all in a nation as large and as diverse of the united states. the federal and state programs and policies will be successful only if they're flexible and are individually tailored to meet the unique challenges facing our cities. because it is in the american cities where the challenges are being met with innovative, pragmatic results. oriented around solutions. in philadelphia, i'll give mayor nutter a shoutout. i don't do that very often. i'll make an exception. in philadelphia, mayor nutter who co-chairs my brother's

keeper task force has engaged in deep partnership with his police commissioner to establish an innovative community policing m model because the long-standing us versus them mentality between african-american community and philadelphia law enforcement needs to end. in bridge port, mayor finch, who co-chairs the energy independence and climate protection task force has transformed an old, unused land fill into a green energy park. this clean energy project generates five megawatts of power through panels and cells. it is supporting bridge port local economy, creating 92 jobs and generating 7 million in new tax revenue. knowing that a reasonable export driven approach was needed to foster a 21st century economy and keeping jobs in the united states, mayor fisher and gray

initiated a partnership between louisville and lexington to spark the growth of high quality jobs in advance manufacturing. in an effort to revitalize the downtown of tacoma, there is an urban renewal for light rail affordable housing and street retail development. there are countless examples like the ones i mentioned with many in the room here today, we're the ones who are best suited to immediate the demanding needs in a better way. is mayor lee here from san francisco? i was going to give him a shoutout but i doesn't get it because he didn't show up. [laughter] roll the teleprompter. [laughter] is mayor cabalden here? if he's not here, i'm rolling --

[laughter] i love it. okay. here's what i'm going to do on the next segment of my state of the cities, tom. i want to say these cities have modernized their ports and their freight, rail and airports. miami, jacksonville, chicago denver, l.a. and dallas. let's give all the mayors a round of applause. [applause] imagine how much more we could do if. federal government had empowered us rather than hinder us with rules and restriction and regulations, which brings me to my final point. we need the federal government to invest where it should because we all know that some of the national problems, it takes not just resolve, but resources. we need resources to come to cities and give us autonomy.

mayors, you need to clap for that. [applause] if the money comes through states, it comes with the flexibility to be spent on local priorities. even better, if those dollars can come directly to cities, we can make a better difference. we have proven that time and time again. imagine the power of a modern day wpa that is focused on local public work projects. whether it is water mains or street repairs or sewage system upgrades, every city has significant infrastructure needs. investing in local infrastructure creates a win-win-win situation. first -- [applause] first, it is an economic win because these public work projects, they create jobs. second, it is an environmental win because we can modernize our

infrastructure in more sustain sustainable ways. lastly, it is a public safety win to upgrade our deteriorated pipes, sewers and streets. we all know, think about it, the role of the federal government is to ensure the u.s. is competitive in an increasingly global world. one thing that will allow america to be more competitive is to improve the integrity of our infrastructure, especially in our cities. [applause] the bottom line is we need our federal government to fundamentally restructure the way it does business. the days of solutions that are exclusively made in washington d.c. are over. because progress begins with a status quo ends. let me conclude with this thought.

today, we're facing an inversion of the hierarchy of power. we're flipping the ole paradigm on its head. cities are the leaders in the nation, experimenting, taking risks, making hard choices, yes, mayors, you're doing that. if we can adopt a new federalist compact that ensures the federal government leads where it must empowers cities where they can and invest where they should the cities can drive the nation to economic and civic heights we have never seen. although we have many challenges, my message is clear. this is our moment, it is our time. cities, let's seize the day. let's make measurable difference in our cities and our communities and our nations. thank you very much. and god bless mayor and the city . [laughter] [applause]

all right, thank you so much for that. excited for this next part of the program. as you're thinking about your trip in washington and while we're here, please really think about what a 3.0 city looks like what is our role in that 3.0 city and how can we redefine the relationship between cities and our federal government? we have a real opportunity because they are listening to us in real ways. i'm proud to leave that message as the first one and i know mayor cornett next year do the same. it is now my pleasure to introduce dr. frank lunts. one of the top messaging experts, he visited our leadership meetings.

he's no foreign person to us. we have seen him on a regular basis. he wrote a famous book called words matters. he understands what policy leaders, he's a republican. what he grapples with is trying to find common ground in how we communicate in a responsible way. let's give a round of applause for frank lunts. [applause] >> as i stand here, i'm neither a republican, nor a democrat i'm an american. and it give me such great pride to speak. i need to ask the mayor, the reason why i actually agreed to do this is because i wanted an autograph, so if you can help me out --