Statement on State of the Union Address

by Senator Mark Kirk on Tuesday, January 25, 2011 at 11:16pm

The Address reflected an important call for civility after the Arizona shootings. Senator Durbin and I sat together as patriots, not partisans.

The chief threat to our economy is runaway federal spending and debt.  The American people elected a new Congress with a mandate to cut spending, reduce debt and keep taxes low.  Unfortunately, I heard more ways to spend tax dollars than ways to cut the budget.  Republicans should support the President's efforts to consolidate the federal government and his call for ending congressional earmarks.

Congress must soon answer the President's request to borrow more money.  We should say no- unless legislation is coupled with new anti-spending reforms that would make any future additions to our debt increasingly impossible.  I am also eager to join in the Administration's discussion towards a simplified tax code and ending regulations that hamper economic growth.

Mortgage Giants Leave Legal Bills to the Taxpayers

January 24, 2011

Pablo Martinez Monsivais/Associated Press

Randy Neugebauer of Texas wants to cut taxpayer exposure to Fannie and Freddie.

By GRETCHEN MORGENSON

Since the government took over Fannie Mae and Freddie Mac, taxpayers have spent more than $160 million defending the mortgage finance companies and their former top executives in civil lawsuits accusing them of fraud. The cost was a closely guarded secret until last week, when the companies and their regulator produced an accounting at the request of Congress.

The bulk of those expenditures — $132 million — went to defend Fannie Mae and its officials in various securities suits and government investigations into accounting irregularities that occurred years before the subprime lending crisis erupted. The legal payments show no sign of abating.

Documents reviewed by The New York Times indicate that taxpayers have paid $24.2 million to law firms defending three of Fannie’s former top executives: Franklin D. Raines, its former chief executive; Timothy Howard, its former chief financial officer; and Leanne Spencer, the former controller.

Late last year, Randy Neugebauer, Republican of Texas and now chairman of the oversight subcommittee of the House Financial Services Committee, requested the figures from the Federal Housing Finance Agency. It is the regulator charged with overseeing the mortgage finance companies and acts as their conservator, trying to preserve the company’s assets on behalf of taxpayers.

“One of the things I feel very strongly about is we need to be doing everything we can to minimize any further exposure to the taxpayers associated with these companies,” Mr. Neugebauer said in an interview last week.

It is typical for corporations to cover such fees unless an executive is found to be at fault. In this case, if the former executives are found liable, the government can try to recoup the costs, but that could prove challenging.

Linda Spillers for The New York Times

Franklin Raines, former chief executive of Fannie Mae , left, and Timothy Howard, former chief financial officer, in 2004.

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Where the Money Has Gone

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Since Fannie Mae and Freddie Mac were taken over by the government in September 2008, their losses stemming from bad loans have mounted, totaling about $150 billion in a recent reckoning. Because the financial regulatory overhaul passed last summer did not address how to resolve Fannie and Freddie, Congress is expected to take up that complex matter this year.

In the coming weeks, the Treasury Department is expected to publish a report outlining the administration’s recommendations regarding the future of the companies.

Well before the credit crisis compelled the government to rescue Fannie and Freddie, accounting irregularities had engulfed both companies. Shareholders of Fannie and Freddie sued to recover stock losses incurred after the improprieties came to light.

Freddie’s problems arose in 2003 when it disclosed that it had understated its income from 2000 to 2002; the company revised its results by an additional $5 billion. In 2004, Fannie was found to have overstated its results for the preceding six years; conceding that its accounting was improper, it reduced its past earnings by $6.3 billion.

Mr. Raines retired in December 2004 and Mr. Howard resigned at the same time. Ms. Spencer left her position as controller in early 2005. The following year, the Office of Federal Housing Enterprise Oversight, then the company’s regulator, published an in-depth report on the company’s accounting practices, accusing Fannie’s top executives of taking actions to manipulate profits and generate $115 million in improper bonuses.

The office sued Mr. Raines, Mr. Howard and Ms. Spencer in 2006, seeking $100 million in fines and $115 million in restitution. In 2008, the three former executives settled with the regulator, returning $31.4 million in compensation. Without admitting or denying the regulator’s allegations, Mr. Raines paid $24.7 million and Mr. Howard paid $6.4 million; Ms. Spencer returned $275,000.

Fannie Mae also settled a fraud suit brought by the Securities and Exchange Commission without admitting or denying the allegations; the company paid $400 million in penalties.

Lawyers for the three former Fannie executives did not respond to requests for comment. A company spokeswoman did not return a phone call or e-mail seeking comment.

In addition to the $160 million in taxpayer money, Fannie and Freddie themselves spent millions of dollars to defend former executives and directors before the government takeover. Freddie Mac had spent a total of $27.8 million. The expenses are significantly larger at Fannie Mae.

Legal costs incurred by Mr. Raines, Mr. Howard and Ms. Spencer in the roughly four and a half years prior to the government takeover totaled almost $63 million. The total incurred before the bailout by other high-level executives and board members was around $12 million, while an additional $18 million covered fees for lawyers for Fannie Mae officials below the level of executive vice president. Many of these individuals are provided lawyers because they are witnesses in the matters.

Employment contracts and company by-laws usually protect, or indemnify, executives and directors against liabilities, including legal fees associated with defending against such suits.

After the government moved to back Fannie and Freddie, the Federal Housing Finance Agency agreed to continue paying to defend the executives, with the taxpayers covering the costs.

But indemnification does not apply across the board. As is the case with many companies, Fannie Mae’s by-laws detail actions that bar indemnification for officers and directors. They include a person’s breach of the duty of loyalty to the company or its stockholders, actions taken that are not in good faith or intentional misconduct.

Richard S. Carnell, an associate professor at Fordham University Law School who was an assistant secretary of the Treasury for financial institutions during the 1990s, questions why Mr. Raines, Mr. Howard and others, given their conduct detailed in the Housing Enterprise Oversight report, are being held harmless by the government and receiving payment of legal bills as a result.

“Their duty of loyalty required them to put shareholders’ interests ahead of their own personal interests,” Mr. Carnell said. “Had they cared about the shareholders, they would not have staked Fannie’s reputation on dubious accounting. They defied their duty of loyalty and served themselves. At a moral level, they don’t deserve indemnification, much less payment of such princely sums.”

Asked why it has not cut off funding for these mounting legal bills, Edward J. DeMarco, the acting director of the Federal Housing Finance Agency, said: “I understand the frustration regarding the advancement of certain legal fees associated with ongoing litigation involving Fannie Mae and certain former employees. It is my responsibility to follow applicable federal and state law. Consequently, on the advice of counsel, I have concluded that the advancement of such fees is in the best interest of the conservatorship.”

If the former executives are found liable, they would be obligated to repay the government. But lawyers familiar with such disputes said it would be difficult to get individuals to repay sums as large as these. Lawyers for Mr. Raines, for example, have received almost $38 million so far, while Ms. Spencer’s bills exceed $31 million.

These individuals could bring further litigation to avoid repaying this money, legal specialists said.

Although the figures are not broken down by case, the largest costs are being generated by a lawsuit centering on accounting improprieties that erupted at Fannie Mae in 2004. This suit, a shareholder class action brought by the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio, is being heard in federal court in Washington. Although it has been going on for six years, the judge has not yet set a trial date. Depositions are still being taken in the case, suggesting that it has much further to go with many more fees to be paid.

Hayworth: Government Doesn’t Create Jobs, Business Does

Posted on January 24, 2011 at 12:29 pm

The way to revive this sputtering economy is to shrink the size of the federal government and let businesses create jobs, newly elected Congresswoman Nan Hayworth said earlier today.

“To me, the best thing the federal govenrment can do is stop trying to create jobs,” Hayworth, a Republican representing the 19th Congressional District, said before a crowd of business leaders. “We need to let you all do what you do best.

“Government doesn’t create jobs, you do.”

The economy, health care reform, spending cuts, a complicated tax code, national debt and financial reform were among topics discussed at the Business Council of Westchester’s KeyBank speaker series at Abigail Kirsch at Tappan Hill.

Hayworth, a medical doctor, ousted Democrat John Hall in November. It was part of a national wave — one she dubbed as “most remarkable election” — that enabled the GOP to recapture the House of Representatives.

“The American people said they wanted to see a different philosophy in government,” she said.

Her overall message parallels what others from across the country are saying as the president readies for his State of the Union Address tomorrow.

It also comes after the new House of Representatives recently repealed the health care law.

Read more tomorrow in The Journal News.

JANUARY 25, 2011, 10:12 AM ET

GOP Senators Push Tying Balanced-Budget Measure to Debt Ceiling Vote

By Damian Paletta

Sens. Orrin Hatch (R., Utah) and John Cornyn (R., Texas) are pushing for a balanced-budget amendment as part of any negotiations to raise the federal debt ceiling.

Sen. Orrin Hatch (R., Utah) (AP Photo/Charles Dharapak)

Their proposal has gained support within the Republican caucus, but Senate Democrats have not yet signaled they would include it in any package that raises the debt ceiling above the $14.3 trillion level set by Congress last year. The Obama administration has said the U.S. could hit the $14.3 trillion debt level as soon as March 31, and they are pushing Congress to raise the limit soon. As of Friday, federal debt subject to the limit stood at $14.008 trillion.

The Hatch/Cornyn plan would, among other things, mandate total budgetary outlays for any fiscal year not exceed revenues; cap federal spending at 20% of GDP; prohibit revenue raising moves that aren’t approved by two-thirds of the House and Senate.

The House and Senate would have to sign off on any exemptions, with a two-thirds vote. Provisions could also be waived if there is a formal declaration of war or because of national security concerns.

White House officials have said they don’t want to couple a debt ceiling vote with any spending restraints, but many Republicans have said they won’t vote to raise the debt ceiling unless there are major cuts in spending.

That's all folks! #SOTU

posted by @RussertXM_NBC from Twitter for BlackBerry 1 min 56 secs ago

Quick take on SOTU

January 25, 2011

Posted by David Gregory at 11:29 PM

Immediate reaction to the speech tonight is that it felt flat. The reaction was polite, but hardly rousing. It seemed hard for the President to feed off the audience even as he offered a speech that was soaring in its approach and reach. I describe it as a call to arms to reclaim American exceptionalism. The President mentioned more than once that there are qualities that set our nation apart from others. He talked more than once about winning the economic future. This was a down payment on his reelection campaign theme which will be how America comes back from near financial collapse stronger than before. It's an optimistic message but one that overlooks how fractious the debate about innovation and competitiveness will be with Republicans in Congress.

The President came into this State of the Union address politically stronger than he's been: a 53 percent approval rating after his Tucson speech and leadership during the lame duck Congress. Tonight we see those same ingredients being mixed. He stands to gain GOP support on education reform, earmarks and tax reform (he called for corporate tax breaks).

But the fight will be over spending. Notice how cautious the President was on Social Security and picking up on the recommendations from the debt commission. A close adviser to the President told me they learned from health care that no party can take on a huge issue like entitlement spending unless and until the other party is on board. Will both parties simply wait each other out on the biggest areas of the federal budget?

Still the most important number tonight was 9.4 percent. That's the jobless rate. How much will it come down by 2012 and will it be enough for voters to credit the President with turning things around? Dating back 62 years when the government first started compiling labor stats, the three times the unemployment rate was higher than 7.4 percent, the President lost reelection.

Two years into his term, President Obama is counting on a different outcome.

Boehner to push school vouchers

Boehner will introduce legislation to reauthorize the D.C. Opportunity Scholarship program. | AP Photo By: Carol E. Lee January 24, 2011 06:30 PM EST

The day after President Barack Obama makes education a centerpiece of his State of the Union address, House Speaker John Boehner will try to force his hand on the issue of school vouchers in Washington, D.C. as a test of the White House’s commitment to bipartisanship. The Ohio Republican, along with Sen. Joe Lieberman (I-Conn.), will introduce legislation on Wednesday to reauthorize the D.C. Opportunity Scholarship program, the speaker’s office said Monday, making a school voucher initiative that Democrats, including Obama, have strongly opposed as a bargaining chip for beginning discussions on the administration’s desired education proposals. “If the president is sincere about working together on education reform, we should start by saving this successful, bipartisan program that has helped so many underprivileged children get a quality education,” Boehner said in a statement to POLITICO. The White House has made clear Obama intends to push for education reform this year, including an overhaul of No Child Left Behind, and has hopes that Republicans will get on board despite the GOP’s resistance to any sweeping legislation. Boehner’s move leaves an education overhaul this year even more in doubt. Teachers unions have fought against the voucher program and Obama’s budget pulled funding for new scholarships after 2010. Supporters of the program, which currently funds scholarships for roughly 1,000 D.C. students, argue that it gives poor students access to better education. Obama is unlikely to showcase the program in his State of the Union address Tuesday night when he calls for reform and additional spending on education initiatives. But Boehner is planning to make it difficult for the president to ignore the issue. The speaker’s guests in the House gallery will include a student, parent and teacher from each of the four D.C. Catholic schools that participate in the program. About 50 D.C. schools participate in the program overall. The GOP’s outline of its top priorities, the “Pledge to America,” does not mention education. The D.C. vouchers funding could be the only bill Boehner authors all year, his office said to stress how important he views the program, and he is not co-sponsoring any legislation this Congress.

Boehner’s Bold Challenge to Obama on School Choice

by Robert Bluey

Barack Obama attended a private school as a youth. He even sends his daughters to one. But as president he wants to deny that same opportunity to low-income students in the District of Columbia.

After two years of limiting educational choices for the poorest kids in D.C., Obama is about to meet his match.

Speaker John Boehner (R-Ohio), a strong supporter of school choice, is hitting back hard with new legislation this week to reauthorize the D.C. Opportunity Scholarship program, a school voucher program that the Obama administration has left on its last leg.

Boehner will also send a not-so-subtle message to Obama during his State of the Union address. He has invited parents, students and teachers who have benefited from school choice to sit in his box in the House chamber. They include three children who are D.C. Opportunity Scholarship recipients, D.C. Parents for School Choice founder Virginia Walden Ford and Cardinal Donald Wuerl, who oversees many of the private schools students attend.

Obama is expected to make a plea for education reform in his annual address to Congress. Republicans have long thought the president was vulnerable on the issue of school choice given his own personal background.

Now he’s facing a serious bipartisan push to restore the D.C. Opportunity Scholarship Program. Boehner will co-sponsor the legislation with Sen. Joe Lieberman (D-Conn.), a supporter of the program and one of the few Senate Democrats to stand up for the low-income students.

“If the president is sincere about working together on education reform, we should start by saving this successful, bipartisan program that has helped so many underprivileged children get a quality education,” Boehner said.

The program was created in 2004, offering scholarship recipients $7,500 to use at private schools. D.C. public schools, in contrast, spend $15,000 per pupil each year for some of the worst schools in America.

[UPDATE: The Cato Institute reports that the $15,000 figure only includes operating costs; official D.C. budget data shows it actually costs $28,000 per pupil]

Despite the relatively small size of the program — there are currently about 1,000 participants — Obama put it on the chopping block shortly after taking office. The move appeased unions, which opposed the program from the start.

Then came the decision in 2009 by Education Secretary Arne Duncan to revoke 216 scholarships from low-income students who had already enrolled. The administration blocked new students from participating.

Duncan’s own department found that scholarship participants achieved the largest gains of 11 programs it studied. And independent studies from Georgetown University and the University of Arkansas confirmed parents’ satisfaction.

These results don’t matter to some Democrats. In Congress, another private-school beneficiary is leading the effort to permanently dismantle the program. Sen. Dick Durbin (D-Ill.) attended a private school, and like Obama, sent his kids to one, yet he doesn’t support giving inner-city children the same chance at a decent education.

Now that Republicans are mounting a high-profile challenge to Obama and Durbin, this will be a fight worth watching.

Sessions: Obama's Budget Proposal a 'Defining Moment'

January 24, 2011

Why Sen. Sessions believes Obama's budget proposal in February will be a pivotal time in his presidency

Mr Boehner where are the jobs it has been 81 days since the GOP took over the House.

TeaPartyHD | September 23, 2010 | 2 likes, 4 dislikes

http://www.teapartyhd.com - House Republicans Roll Out Their 'Pledge to America'

You promised JOBS, you promised 100B in reduced Deficit, now it may be 50 60B. you promised a better congress, and the Dems offered the new seating at the SOTU.  You have voted to repeal the Health Care Bill saying you listened to We the people, but we the people have stated since the November election that we want the ObamaCare, we just want some improvement.  We want the Congress to work together, to accomplish what We want done.  I have not read Paul Ryans Project, I will try to put it in here, if not there will be link.   

Full Text: Michelle Bachmann Response to the State of the Union

Tuesday, January 25, 2011 | 10:38 p.m.

Good evening, my name is Congresswoman Michele Bachmann from Minnesota's 6th District.

Two years ago, when Barack Obama became our President, unemployment was 7.8 percent and our national debt stood at what seemed like a staggering $10.6 trillion dollars.

We wondered whether the President would cut spending, reduce the deficit and implement real job-creating policies.

Unfortunately, the President's strategy for recovery was to spend a trillion dollars on a failed stimulus program, fueled by borrowed money.

The White House promised us that all the spending would keep unemployment under 8 percent.

Not only did that plan fail to deliver, but within three months the national jobless rate spiked to 9.4 percent. And sadly, it hasn't been lower for 20 straight months. While the government grew, we lost more than 2 million jobs.

Let me show you a chart. [CHART]

Here are unemployment rates over the past ten years. In October 2001, our national unemployment rate was at 5.3 percent. In 2008 it was at 6.6 percent. But, just eight months after President Obama promised lower unemployment, that rate spiked to a staggering 10.1 percent.

Today, unemployment is at 9.4 percent with about 400,000 new claims every week.

After the $700 billion bailout, the trillion-dollar stimulus, and the $410 billion spending bill with over 9,000 earmarks, many of you implored Washington to please stop spending money we don't have.

But, instead of cutting, we saw an unprecedented explosion of government spending and debt, unlike anything we have seen in the history of our country.

[CHART]

Deficits were unacceptably high under President Bush, but they exploded under President Obama's direction, growing the national debt by an astounding $3.1 trillion-dollars.

What did we buy?

Instead of a leaner, smarter government, we bought a bureaucracy that tells us which light bulbs to buy, and which will put 16,500 IRS agents in charge of policing President Obama's healthcare bill.

ObamaCare mandates and penalties will force many job creators to stop offering health insurance altogether, unless yours is one of the more-than-222 privileged companies or unions that has received a government waiver.

In the end, unless we fully repeal ObamaCare, a nation that currently enjoys the world's best healthcare may be forced to rely on government-run coverage that will have a devastating impact on our national debt for generations to come.

For two years President Obama made promises just like the ones we heard him make tonight. Yet still we have high unemployment, devalued housing prices and the cost of gasoline is skyrocketing.

Here are a few suggestions for fixing our economy:

The President could stop the EPA from imposing a job-destroying cap-and-trade system.

The President could support a Balanced Budget Amendment.

The President could agree to an energy policy that increases American energy production and reduces our dependence on foreign oil.

The President could also turn back some of the 132 regulations put in place in the last two years, many of which will cost our economy $100 million or more.

And, the President should repeal ObamaCare and support free market solutions like medical malpractice reform and allow all Americans to buy any healthcare policy they like anywhere in the United States.

We need to start making things again in this country, and we can do that by reducing the tax and regulatory burdens on job creators.

America will have the highest corporate tax rate in the world. Look no further to see why jobs are moving overseas.

But, thanks to you, there's reason to hope that real spending cuts are coming. Last November you went to the polls and voted out big-spending politicians and you put in their place men and women with a commitment to follow the Constitution and cut the size of government.

I believe that we are in the early days of a history-making turn.

Please know how important your calls, visits, and letters are to the maintenance of our liberties. Because of you, Congress responded and we are starting to undo the damage that's been done.

We believe in lower taxes, a limited view of government and the exceptionalism of America. And I believe America is the indispensible nation.

Just the creation of this nation was a miracle. Who's to say that we can't see a miracle again?

The perilous battle that was fought in the pacific, at Iwo Jima, was a battle against all odds, and yet the image of the young G.I.s in the incursion against the Japanese immortalizes their victory. These six young men raising the flag came to symbolize all of America coming together to beat back a totalitarian aggressor.

Our current debt crisis we face today is different, but we still need all of us to pull together. We can do this.

And that's the hope we hold tonight as Americans. We will push forward to reclaim the greatness of our country and to proclaim the liberty upon which we were founded.

And we will do so because we the people will never give up on this great nation.

God bless you, and God bless America.

SENATOR COLLINS' STATEMENT FOLLOWING STATE OF THE UNION ADDRESS

January 25, 2011

WASHINGTON, D.C. -

Following President Obama’s State of the Union address this evening, Senator Susan Collins released this statement:

“The 112th Congress will bring extraordinary challenges as we continue to work to improve our nation’s economy, lower the unemployment rate, seek both short-term and long-term ways to reduce federal spending to bring the federal debt under control, and debate a host of other important issues. I appreciate that the President called for members of both parties to work together to address these challenges.

“In the year ahead, the fiscal policies that the Administration and Congress undertake must tackle our spending problem, get the economy moving again, and put Americans back to work. I agree with the President that the top priority of the Administration and of Congress must be private sector job growth.

“Everywhere I travel in Maine, whether I’m talking to a machine shop owner, a trucking company operator, a small residential contractor, or other employers, I hear the same refrain: “Given the economic policies and regulations coming out of Washington, we don’t dare create any jobs, buy new equipment, or take any risks to grow our businesses.”

“The Administration’s policies have failed to stimulate private sector investment, which is the key to creating permanent jobs. In December, Republicans and Democrats worked together to extend the 2001 and 2003 tax relief laws for two years, preventing American families and businesses from facing what would have been one of the largest tax increases in U.S. history. This was a critical step in the right direction, but more must be done to make our country a better place to do business.

“Congress also must undertake comprehensive tax reform to make our system fairer, simpler, and to help ensure that our tax policies support growth for American companies to create new jobs.

“While it is encouraging that the President called for a five-year freeze on discretionary spending, achieving this goal will require the President to submit a budget that forcefully limits spending. That would be an abrupt but welcomed departure from the President’s previous budgets which doubled the federal debt in five years. We simply must rein in our spending and get our financial house in order. America’s out-of-control debt is a grave threat to our nation’s future prosperity. Our country has accumulated a massive debt totaling more than $14 trillion – and it’s growing. This trend threatens to extend our economic stagnation, puts our nation on an irresponsible financial path, and imposes unconscionable debt on our children and grandchildren. Our government has made promises and incurred obligations far greater than our ability to pay, and it is clear that we need to make some fundamental changes.

“The President must produce a budget this year that sets forth a specific plan for limiting spending. We could save billions of dollars, for example, by eliminating the taxpayer subsidy for corn-based ethanol, reducing price supports for large corporate farmers, and preventing the funding of an alternative jet engine that the Pentagon opposes.

“As we work to address these issues, I agree with the President that we should not be hindered by political partisanship. We must seek common ground and work together in the spirit of bipartisanship to get the job done.

“We are in the midst of an economic storm, and we have tough choices to make. We must reassess our national priorities and set a new course marked by fiscal responsibility. I am hopeful that the Administration will work with Congress to develop an effective plan to correct the government’s long-term fiscal imbalances and help drain the nation’s mounting sea of debt. That is the only way to get our nation, and its future, back on track."

Cornyn Responds to President Obama’s State of the Union Address

Jan 25 2011

Cornyn Responds to President Obama’s State of the Union Address 

WASHINGTON, D.C. – U.S. Senator John Cornyn (R-Texas) released the following response to tonight’s State of the Union address:

“President Obama made a lot of promises tonight in his State of The Union Address – just like he’s done in previous years. In past State of The Union speeches, President Obama has promised to focus on jobs and the economy, yet our unemployment rate still sits well north of nine percent. He promised to make the hard choices and cut spending, yet his policies have added more than $3 trillion to the national debt – in just the last two years. He promised to work across the aisle on energy policy, but nothing has happened. He’s repeatedly promised to make immigration reform a top priority, but has done little more than use it as a talking point around Election Day.

“In Texas we prefer straight talk and promises kept, over grandiose pledges and zero results.

“Tonight, the President said we have to get a handle on our national debt. I couldn’t agree more, but I want to see not just talk, but action. A freeze on some parts of the federal budget—as he suggested—would be a small step in the right direction, but his call for new government spending represents a giant step backwards. The best way to restore fiscal discipline in Washington, I believe, is through a Balanced Budget Amendment to our Constitution, which I intend to introduce with dozens of my colleagues very soon – and I hope the White House will endorse.”

SOTU at a glance

By Will Femia

  -  

Tue Jan 25, 2011 10:15 PM EST

Pursuant to the New York Times' look at word use in State of the Union addresses over time, here's tonight's address (as prepared, which may be a little different than what he delivered) as a word cloud:

See also this amazing interactive timeline.

National Journal Skirts Embargo, Posts Full Text Of Obama’s State of the Union Address

Whether or not this is complete and the final copy can't say.... 

by Tommy Christopher | 7:49 pm, January 25th, 2011

The White House has taken more care than usual that President Obama’s State of the Union address not leak to the press early, advising reporters that their advance copies of the text would be sent out very close to the speech’s scheduled start. Those efforts appear to be for naught, however, as The National Journal has obtained a copy of the SOTU from a Hill staffer, and posted the entire thing online.
Update: When asked for a reaction to National Journal’s leak, a senior White House official replied, “What’s National Journal?”
Ouch. The White House has now released the full speech, which you can see after the jump.

Technically, they haven’t broken the embargo, as they got the speech from a third party, but the White House can’t be very happy with this development, which steals considerable thunder from the President’s annual address before Congress.
Update: The White House has lifted the embargo. Here is the full text of the President’s State of the Union Address, as prepared: (via email from The White House)

Remarks of President Barack Obama – As Prepared for Delivery
State of the Union Address
Tuesday, January 25, 2011
Washington, DC
As Prepared for Delivery—
Mr. Speaker, Mr. Vice President, Members of Congress, distinguished guests, and fellow Americans:
Tonight I want to begin by congratulating the men and women of the 112th Congress, as well as your new Speaker, John Boehner. And as we mark this occasion, we are also mindful of the empty chair in this Chamber, and pray for the health of our colleague – and our friend – Gabby Giffords.
It’s no secret that those of us here tonight have had our differences over the last two years. The debates have been contentious; we have fought fiercely for our beliefs. And that’s a good thing. That’s what a robust democracy demands. That’s what helps set us apart as a nation.
But there’s a reason the tragedy in Tucson gave us pause. Amid all the noise and passions and rancor of our public debate, Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater – something more consequential than party or political preference.
We are part of the American family. We believe that in a country where every race and faith and point of view can be found, we are still bound together as one people; that we share common hopes and a common creed; that the dreams of a little girl in Tucson are not so different than those of our own children, and that they all deserve the chance to be fulfilled.
That, too, is what sets us apart as a nation.
Now, by itself, this simple recognition won’t usher in a new era of cooperation. What comes of this moment is up to us. What comes of this moment will be determined not by whether we can sit together tonight, but whether we can work together tomorrow.
I believe we can. I believe we must. That’s what the people who sent us here expect of us. With their votes, they’ve determined that governing will now be a shared responsibility between parties. New laws will only pass with support from Democrats and Republicans. We will move forward together, or not at all – for the challenges we face are bigger than party, and bigger than politics.
At stake right now is not who wins the next election – after all, we just had an election. At stake is whether new jobs and industries take root in this country, or somewhere else. It’s whether the hard work and industry of our people is rewarded. It’s whether we sustain the leadership that has made America not just a place on a map, but a light to the world.
We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.
But we have never measured progress by these yardsticks alone. We measure progress by the success of our people. By the jobs they can find and the quality of life those jobs offer. By the prospects of a small business owner who dreams of turning a good idea into a thriving enterprise. By the opportunities for a better life that we pass on to our children.
That’s the project the American people want us to work on. Together.
We did that in December. Thanks to the tax cuts we passed, Americans’ paychecks are a little bigger today. Every business can write off the full cost of the new investments they make this year. These steps, taken by Democrats and Republicans, will grow the economy and add to the more than one million private sector jobs created last year.
But we have more work to do. The steps we’ve taken over the last two years may have broken the back of this recession – but to win the future, we’ll need to take on challenges that have been decades in the making.
Many people watching tonight can probably remember a time when finding a good job meant showing up at a nearby factory or a business downtown. You didn’t always need a degree, and your competition was pretty much limited to your neighbors. If you worked hard, chances are you’d have a job for life, with a decent paycheck, good benefits, and the occasional promotion. Maybe you’d even have the pride of seeing your kids work at the same company.
That world has changed. And for many, the change has been painful.  I’ve seen it in the shuttered windows of once booming factories, and the vacant storefronts of once busy Main Streets. I’ve heard it in the frustrations of Americans who’ve seen their paychecks dwindle or their jobs disappear – proud men and women who feel like the rules have been changed in the middle of the game.
They’re right. The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. Steel mills that once needed 1,000 workers can now do the same work with 100.  Today, just about any company can set up shop, hire workers, and sell their products wherever there’s an internet connection.
Meanwhile, nations like China and India realized that with some changes of their own, they could compete in this new world. And so they started educating their children earlier and longer, with greater emphasis on math and science. They’re investing in research and new technologies. Just recently, China became home to the world’s largest private solar research facility, and the world’s fastest computer.
So yes, the world has changed. The competition for jobs is real. But this shouldn’t discourage us. It should challenge us. Remember – for all the hits we’ve taken these last few years, for all the naysayers predicting our decline, America still has the largest, most prosperous economy in the world. No workers are more productive than ours. No country has more successful companies, or grants more patents to inventors and entrepreneurs. We are home to the world’s best colleges and universities, where more students come to study than any other place on Earth.
What’s more, we are the first nation to be founded for the sake of an idea – the idea that each of us deserves the chance to shape our own destiny. That is why centuries of pioneers and immigrants have risked everything to come here.  It’s why our students don’t just memorize equations, but answer questions like “What do you think of that idea? What would you change about the world? What do you want to be when you grow up?”
The future is ours to win. But to get there, we can’t just stand still.  As Robert Kennedy told us, “The future is not a gift. It is an achievement.” Sustaining the American Dream has never been about standing pat. It has required each generation to sacrifice, and struggle, and meet the demands of a new age.
Now it’s our turn. We know what it takes to compete for the jobs and industries of our time. We need to out-innovate, out-educate, and out-build the rest of the world. We have to make America the best place on Earth to do business. We need to take responsibility for our deficit, and reform our government. That’s how our people will prosper.  That’s how we’ll win the future. And tonight, I’d like to talk about how we get there.
The first step in winning the future is encouraging American innovation.
None of us can predict with certainty what the next big industry will be, or where the new jobs will come from. Thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution. What we can do – what America does better than anyone – is spark the creativity and imagination of our people.  We are the nation that put cars in driveways and computers in offices; the nation of Edison and the Wright brothers; of Google and Facebook. In America, innovation doesn’t just change our lives. It’s how we make a living.
Our free enterprise system is what drives innovation. But because it’s not always profitable for companies to invest in basic research, throughout history our government has provided cutting-edge scientists and inventors with the support that they need.  That’s what planted the seeds for the Internet. That’s what helped make possible things like computer chips and GPS.
Just think of all the good jobs – from manufacturing to retail – that have come from those breakthroughs.
Half a century ago, when the Soviets beat us into space with the launch of a satellite called Sputnik¸ we had no idea how we’d beat them to the moon. The science wasn’t there yet. NASA didn’t even exist.  But after investing in better research and education, we didn’t just surpass the Soviets; we unleashed a wave of innovation that created new industries and millions of new jobs.
This is our generation’s Sputnik moment. Two years ago, I said that we needed to reach a level of research and development we haven’t seen since the height of the Space Race. In a few weeks, I will be sending a budget to Congress that helps us meet that goal.  We’ll invest in biomedical research, information technology, and especially clean energy technology – an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.
Already, we are seeing the promise of renewable energy. Robert and Gary Allen are brothers who run a small Michigan roofing company. After September 11th, they volunteered their best roofers to help repair the Pentagon. But half of their factory went unused, and the recession hit them hard.
Today, with the help of a government loan, that empty space is being used to manufacture solar shingles that are being sold all across the country. In Robert’s words, “We reinvented ourselves.”
That’s what Americans have done for over two hundred years: reinvented ourselves. And to spur on more success stories like the Allen Brothers, we’ve begun to reinvent our energy policy. We’re not just handing out money. We’re issuing a challenge.  We’re telling America’s scientists and engineers that if they assemble teams of the best minds in their fields, and focus on the hardest problems in clean energy, we’ll fund the Apollo Projects of our time.
At the California Institute of Technology, they’re developing a way to turn sunlight and water into fuel for our cars. At Oak Ridge National Laboratory, they’re using supercomputers to get a lot more power out of our nuclear facilities.  With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015.
We need to get behind this innovation. And to help pay for it, I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don’t know if you’ve noticed, but they’re doing just fine on their own. So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s.
Now, clean energy breakthroughs will only translate into clean energy jobs if businesses know there will be a market for what they’re selling. So tonight, I challenge you to join me in setting a new goal: by 2035, 80% of America’s electricity will come from clean energy sources. Some folks want wind and solar. Others want nuclear, clean coal, and natural gas. To meet this goal, we will need them all – and I urge Democrats and Republicans to work together to make it happen.
Maintaining our leadership in research and technology is crucial to America’s success. But if we want to win the future – if we want innovation to produce jobs in America and not overseas – then we also have to win the race to educate our kids.
Think about it. Over the next ten years, nearly half of all new jobs will require education that goes beyond a high school degree. And yet, as many as a quarter of our students aren’t even finishing high school. The quality of our math and science education lags behind many other nations.  America has fallen to 9th in the proportion of young people with a college degree. And so the question is whether all of us – as citizens, and as parents – are willing to do what’s necessary to give every child a chance to succeed.
That responsibility begins not in our classrooms, but in our homes and communities. It’s family that first instills the love of learning in a child. Only parents can make sure the TV is turned off and homework gets done.  We need to teach our kids that it’s not just the winner of the Super Bowl who deserves to be celebrated, but the winner of the science fair; that success is not a function of fame or PR, but of hard work and discipline.
Our schools share this responsibility. When a child walks into a classroom, it should be a place of high expectations and high performance. But too many schools don’t meet this test. That’s why instead of just pouring money into a system that’s not working, we launched a competition called Race to the Top.  To all fifty states, we said, “If you show us the most innovative plans to improve teacher quality and student achievement, we’ll show you the money.”
Race to the Top is the most meaningful reform of our public schools in a generation. For less than one percent of what we spend on education each year, it has led over 40 states to raise their standards for teaching and learning. These standards were developed, not by Washington, but by Republican and Democratic governors throughout the country.  And Race to the Top should be the approach we follow this year as we replace No Child Left Behind with a law that is more flexible and focused on what’s best for our kids.
You see, we know what’s possible for our children when reform isn’t just a top-down mandate, but the work of local teachers and principals; school boards and communities.
Take a school like Bruce Randolph in Denver. Three years ago, it was rated one of the worst schools in Colorado; located on turf between two rival gangs. But last May, 97% of the seniors received their diploma. Most will be the first in their family to go to college. And after the first year of the school’s transformation, the principal who made it possible wiped away tears when a student said “Thank you, Mrs. Waters, for showing… that we are smart and we can make it.”
Let’s also remember that after parents, the biggest impact on a child’s success comes from the man or woman at the front of the classroom. In South Korea, teachers are known as “nation builders.” Here in America, it’s time we treated the people who educate our children with the same level of respect. We want to reward good teachers and stop making excuses for bad ones.  And over the next ten years, with so many Baby Boomers retiring from our classrooms, we want to prepare 100,000 new teachers in the fields of science, technology, engineering, and math.
In fact, to every young person listening tonight who’s contemplating their career choice: If you want to make a difference in the life of our nation; if you want to make a difference in the life of a child – become a teacher. Your country needs you.
Of course, the education race doesn’t end with a high school diploma. To compete, higher education must be within reach of every American. That’s why we’ve ended the unwarranted taxpayer subsidies that went to banks, and used the savings to make college affordable for millions of students.  And this year, I ask Congress to go further, and make permanent our tuition tax credit – worth $10,000 for four years of college.
Because people need to be able to train for new jobs and careers in today’s fast-changing economy, we are also revitalizing America’s community colleges. Last month, I saw the promise of these schools at Forsyth Tech in North Carolina. Many of the students there used to work in the surrounding factories that have since left town. One mother of two, a woman named Kathy Proctor, had worked in the furniture industry since she was 18 years old.  And she told me she’s earning her degree in biotechnology now, at 55 years old, not just because the furniture jobs are gone, but because she wants to inspire her children to pursue their dreams too. As Kathy said, “I hope it tells them to never give up.”
If we take these steps – if we raise expectations for every child, and give them the best possible chance at an education, from the day they’re born until the last job they take – we will reach the goal I set two years ago: by the end of the decade, America will once again have the highest proportion of college graduates in the world.
One last point about education. Today, there are hundreds of thousands of students excelling in our schools who are not American citizens. Some are the children of undocumented workers, who had nothing to do with the actions of their parents. They grew up as Americans and pledge allegiance to our flag, and yet live every day with the threat of deportation. Others come here from abroad to study in our colleges and universities. But as soon as they obtain advanced degrees, we send them back home to compete against us. It makes no sense.
Now, I strongly believe that we should take on, once and for all, the issue of illegal immigration. I am prepared to work with Republicans and Democrats to protect our borders, enforce our laws and address the millions of undocumented workers who are now living in the shadows. I know that debate will be difficult and take time. But tonight, let’s agree to make that effort. And let’s stop expelling talented, responsible young people who can staff our research labs, start new businesses, and further enrich this nation.
The third step in winning the future is rebuilding America. To attract new businesses to our shores, we need the fastest, most reliable ways to move people, goods, and information – from high-speed rail to high-speed internet.
Our infrastructure used to be the best – but our lead has slipped. South Korean homes now have greater internet access than we do. Countries in Europe and Russia invest more in their roads and railways than we do. China is building faster trains and newer airports.  Meanwhile, when our own engineers graded our nation’s infrastructure, they gave us a “D.”
We have to do better. America is the nation that built the transcontinental railroad, brought electricity to rural communities, and constructed the interstate highway system. The jobs created by these projects didn’t just come from laying down tracks or pavement. They came from businesses that opened near a town’s new train station or the new off-ramp.
Over the last two years, we have begun rebuilding for the 21st century, a project that has meant thousands of good jobs for the hard-hit construction industry. Tonight, I’m proposing that we redouble these efforts.
We will put more Americans to work repairing crumbling roads and bridges. We will make sure this is fully paid for, attract private investment, and pick projects based on what’s best for the economy, not politicians.
Within 25 years, our goal is to give 80% of Americans access to high-speed rail, which could allow you go places in half the time it takes to travel by car. For some trips, it will be faster than flying – without the pat-down. As we speak, routes in California and the Midwest are already underway.
Within the next five years, we will make it possible for business to deploy the next generation of high-speed wireless coverage to 98% of all Americans. This isn’t just about a faster internet and fewer dropped calls. It’s about connecting every part of America to the digital age.  It’s about a rural community in Iowa or Alabama where farmers and small business owners will be able to sell their products all over the world. It’s about a firefighter who can download the design of a burning building onto a handheld device; a student who can take classes with a digital textbook; or a patient who can have face-to-face video chats with her doctor.
All these investments – in innovation, education, and infrastructure – will make America a better place to do business and create jobs.  But to help our companies compete, we also have to knock down barriers that stand in the way of their success.
Over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change.
So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years – without adding to our deficit.
To help businesses sell more products abroad, we set a goal of doubling our exports by 2014 – because the more we export, the more jobs we create at home. Already, our exports are up. Recently, we signed agreements with India and China that will support more than 250,000 jobs in the United States.  And last month, we finalized a trade agreement with South Korea that will support at least 70,000 American jobs. This agreement has unprecedented support from business and labor; Democrats and Republicans, and I ask this Congress to pass it as soon as possible.
Before I took office, I made it clear that we would enforce our trade agreements, and that I would only sign deals that keep faith with American workers, and promote American jobs.  That’s what we did with Korea, and that’s what I intend to do as we pursue agreements with Panama and Colombia, and continue our Asia Pacific and global trade talks.
To reduce barriers to growth and investment, I’ve ordered a review of government regulations. When we find rules that put an unnecessary burden on businesses, we will fix them. But I will not hesitate to create or enforce commonsense safeguards to protect the American people.  That’s what we’ve done in this country for more than a century. It’s why our food is safe to eat, our water is safe to drink, and our air is safe to breathe. It’s why we have speed limits and child labor laws.  It’s why last year, we put in place consumer protections against hidden fees and penalties by credit card companies, and new rules to prevent another financial crisis. And it’s why we passed reform that finally prevents the health insurance industry from exploiting patients.
Now, I’ve heard rumors that a few of you have some concerns about the new health care law. So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.
What I’m not willing to do is go back to the days when insurance companies could deny someone coverage because of a pre-existing condition.  I’m not willing to tell James Howard, a brain cancer patient from Texas, that his treatment might not be covered. I’m not willing to tell Jim Houser, a small business owner from Oregon, that he has to go back to paying $5,000 more to cover his employees.  As we speak, this law is making prescription drugs cheaper for seniors and giving uninsured students a chance to stay on their parents’ coverage. So instead of re-fighting the battles of the last two years, let’s fix what needs fixing and move forward.
Now, the final step – a critical step – in winning the future is to make sure we aren’t buried under a mountain of debt.
We are living with a legacy of deficit-spending that began almost a decade ago. And in the wake of the financial crisis, some of that was necessary to keep credit flowing, save jobs, and put money in people’s pockets.
But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable.  Every day, families sacrifice to live within their means. They deserve a government that does the same.
So tonight, I am proposing that starting this year, we freeze annual domestic spending for the next five years. This would reduce the deficit by more than $400 billion over the next decade, and will bring discretionary spending to the lowest share of our economy since Dwight Eisenhower was president.
This freeze will require painful cuts. Already, we have frozen the salaries of hardworking federal employees for the next two years.  I’ve proposed cuts to things I care deeply about, like community action programs. The Secretary of Defense has also agreed to cut tens of billions of dollars in spending that he and his generals believe our military can do without.
I recognize that some in this Chamber have already proposed deeper cuts, and I’m willing to eliminate whatever we can honestly afford to do without. But let’s make sure that we’re not doing it on the backs of our most vulnerable citizens.  And let’s make sure what we’re cutting is really excess weight. Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may feel like you’re flying high at first, but it won’t take long before you’ll feel the impact.
Now, most of the cuts and savings I’ve proposed only address annual domestic spending, which represents a little more than 12% of our budget. To make further progress, we have to stop pretending that cutting this kind of spending alone will be enough. It won’t.
The bipartisan Fiscal Commission I created last year made this crystal clear. I don’t agree with all their proposals, but they made important progress. And their conclusion is that the only way to tackle our deficit is to cut excessive spending wherever we find it – in domestic spending, defense spending, health care spending, and spending through tax breaks and loopholes.
This means further reducing health care costs, including programs like Medicare and Medicaid, which are the single biggest contributor to our long-term deficit.  Health insurance reform will slow these rising costs, which is part of why nonpartisan economists have said that repealing the health care law would add a quarter of a trillion dollars to our deficit. Still, I’m willing to look at other ideas to bring down costs, including one that Republicans suggested last year: medical malpractice reform to rein in frivolous lawsuits.
To put us on solid ground, we should also find a bipartisan solution to strengthen Social Security for future generations.  And we must do it without putting at risk current retirees, the most vulnerable, or people with disabilities; without slashing benefits for future generations; and without subjecting Americans’ guaranteed retirement income to the whims of the stock market.
And if we truly care about our deficit, we simply cannot afford a permanent extension of the tax cuts for the wealthiest 2% of Americans. Before we take money away from our schools, or scholarships away from our students, we should ask millionaires to give up their tax break.
It’s not a matter of punishing their success. It’s about promoting America’s success.
In fact, the best thing we could do on taxes for all Americans is to simplify the individual tax code. This will be a tough job, but members of both parties have expressed interest in doing this, and I am prepared to join them.
So now is the time to act. Now is the time for both sides and both houses of Congress – Democrats and Republicans – to forge a principled compromise that gets the job done.  If we make the hard choices now to rein in our deficits, we can make the investments we need to win the future.
Let me take this one step further. We shouldn’t just give our people a government that’s more affordable. We should give them a government that’s more competent and efficient. We cannot win the future with a government of the past.
We live and do business in the information age, but the last major reorganization of the government happened in the age of black and white TV.  There are twelve different agencies that deal with exports. There are at least five different entities that deal with housing policy. Then there’s my favorite example: the Interior Department is in charge of salmon while they’re in fresh water, but the Commerce Department handles them in when they’re in saltwater. And I hear it gets even more complicated once they’re smoked.
Now, we have made great strides over the last two years in using technology and getting rid of waste. Veterans can now download their electronic medical records with a click of the mouse.  We’re selling acres of federal office space that hasn’t been used in years, and we will cut through red tape to get rid of more. But we need to think bigger.  In the coming months, my administration will develop a proposal to merge, consolidate, and reorganize the federal government in a way that best serves the goal of a more competitive America. I will submit that proposal to Congress for a vote – and we will push to get it passed.
In the coming year, we will also work to rebuild people’s faith in the institution of government.  Because you deserve to know exactly how and where your tax dollars are being spent, you will be able to go to a website and get that information for the very first time in history. Because you deserve to know when your elected officials are meeting with lobbyists, I ask Congress to do what the White House has already done: put that information online.  And because the American people deserve to know that special interests aren’t larding up legislation with pet projects, both parties in Congress should know this: if a bill comes to my desk with earmarks inside, I will veto it.
A 21st century government that’s open and competent. A government that lives within its means. An economy that’s driven by new skills and ideas. Our success in this new and changing world will require reform, responsibility, and innovation. It will also require us to approach that world with a new level of engagement in our foreign affairs.
Just as jobs and businesses can now race across borders, so can new threats and new challenges. No single wall separates East and West; no one rival superpower is aligned against us.
And so we must defeat determined enemies wherever they are, and build coalitions that cut across lines of region and race and religion. America’s moral example must always shine for all who yearn for freedom, justice, and dignity. And because we have begun this work, tonight we can say that American leadership has been renewed and America’s standing has been restored.
Look to Iraq, where nearly 100,000 of our brave men and women have left with their heads held high; where American combat patrols have ended; violence has come down; and a new government has been formed. This year, our civilians will forge a lasting partnership with the Iraqi people, while we finish the job of bringing our troops out of Iraq. America’s commitment has been kept; the Iraq War is coming to an end.
Of course, as we speak, al Qaeda and their affiliates continue to plan attacks against us.  Thanks to our intelligence and law enforcement professionals, we are disrupting plots and securing our cities and skies. And as extremists try to inspire acts of violence within our borders, we are responding with the strength of our communities, with respect for the rule of law, and with the conviction that American Muslims are a part of our American family.
We have also taken the fight to al Qaeda and their allies abroad. In Afghanistan, our troops have taken Taliban strongholds and trained Afghan Security Forces.  Our purpose is clear – by preventing the Taliban from reestablishing a stranglehold over the Afghan people, we will deny al Qaeda the safe-haven that served as a launching pad for 9/11.
Thanks to our heroic troops and civilians, fewer Afghans are under the control of the insurgency. There will be tough fighting ahead, and the Afghan government will need to deliver better governance. But we are strengthening the capacity of the Afghan people and building an enduring partnership with them.  This year, we will work with nearly 50 countries to begin a transition to an Afghan lead. And this July, we will begin to bring our troops home.
In Pakistan, al Qaeda’s leadership is under more pressure than at any point since 2001. Their leaders and operatives are being removed from the battlefield. Their safe-havens are shrinking. And we have sent a message from the Afghan border to the Arabian Peninsula to all parts of the globe: we will not relent, we will not waver, and we will defeat you.
American leadership can also be seen in the effort to secure the worst weapons of war. Because Republicans and Democrats approved the New START Treaty, far fewer nuclear weapons and launchers will be deployed. Because we rallied the world, nuclear materials are being locked down on every continent so they never fall into the hands of terrorists.
Because of a diplomatic effort to insist that Iran meet its obligations, the Iranian government now faces tougher and tighter sanctions than ever before. And on the Korean peninsula, we stand with our ally South Korea, and insist that North Korea keeps its commitment to abandon nuclear weapons.
This is just a part of how we are shaping a world that favors peace and prosperity. With our European allies, we revitalized NATO, and increased our cooperation on everything from counter-terrorism to missile defense.  We have reset our relationship with Russia, strengthened Asian alliances, and built new partnerships with nations like India. This March, I will travel to Brazil, Chile, and El Salvador to forge new alliances for progress in the Americas. Around the globe, we are standing with those who take responsibility – helping farmers grow more food; supporting doctors who care for the sick; and combating the corruption that can rot a society and rob people of opportunity.
Recent events have shown us that what sets us apart must not just be our power – it must be the purpose behind it.  In South Sudan – with our assistance – the people were finally able to vote for independence after years of war. Thousands lined up before dawn. People danced in the streets. One man who lost four of his brothers at war summed up the scene around him: “This was a battlefield for most of my life. Now we want to be free.”
We saw that same desire to be free in Tunisia, where the will of the people proved more powerful than the writ of a dictator. And tonight, let us be clear: the United States of America stands with the people of Tunisia, and supports the democratic aspirations of all people.
We must never forget that the things we’ve struggled for, and fought for, live in the hearts of people everywhere. And we must always remember that the Americans who have borne the greatest burden in this struggle are the men and women who serve our country.
Tonight, let us speak with one voice in reaffirming that our nation is united in support of our troops and their families.  Let us serve them as well as they have served us – by giving them the equipment they need; by providing them with the care and benefits they have earned; and by enlisting our veterans in the great task of building our own nation.
Our troops come from every corner of this country – they are black, white, Latino, Asian and Native American. They are Christian and Hindu, Jewish and Muslim. And, yes, we know that some of them are gay. Starting this year, no American will be forbidden from serving the country they love because of who they love.  And with that change, I call on all of our college campuses to open their doors to our military recruiters and the ROTC. It is time to leave behind the divisive battles of the past. It is time to move forward as one nation.
We should have no illusions about the work ahead of us. Reforming our schools; changing the way we use energy; reducing our deficit – none of this is easy. All of it will take time. And it will be harder because we will argue about everything. The cost. The details. The letter of every law.
Of course, some countries don’t have this problem. If the central government wants a railroad, they get a railroad – no matter how many homes are bulldozed. If they don’t want a bad story in the newspaper, it doesn’t get written.
And yet, as contentious and frustrating and messy as our democracy can sometimes be, I know there isn’t a person here who would trade places with any other nation on Earth.
We may have differences in policy, but we all believe in the rights enshrined in our Constitution. We may have different opinions, but we believe in the same promise that says this is a place where you can make it if you try. We may have different backgrounds, but we believe in the same dream that says this is a country where anything’s possible. No matter who you are. No matter where you come from.
That dream is why I can stand here before you tonight. That dream is why a working class kid from Scranton can stand behind me.  That dream is why someone who began by sweeping the floors of his father’s Cincinnati bar can preside as Speaker of the House in the greatest nation on Earth.
That dream – that American Dream – is what drove the Allen Brothers to reinvent their roofing company for a new era. It’s what drove those students at Forsyth Tech to learn a new skill and work towards the future. And that dream is the story of a small business owner named Brandon Fisher.
Brandon started a company in Berlin, Pennsylvania that specializes in a new kind of drilling technology. One day last summer, he saw the news that halfway across the world, 33 men were trapped in a Chilean mine, and no one knew how to save them.
But Brandon thought his company could help. And so he designed a rescue that would come to be known as Plan B. His employees worked around the clock to manufacture the necessary drilling equipment. And Brandon left for Chile.
Along with others, he began drilling a 2,000 foot hole into the ground, working three or four days at a time with no sleep. Thirty-seven days later, Plan B succeeded, and the miners were rescued. But because he didn’t want all of the attention, Brandon wasn’t there when the miners emerged. He had already gone home, back to work on his next project.
Later, one of his employees said of the rescue, “We proved that Center Rock is a little company, but we do big things.”
We do big things.
From the earliest days of our founding, America has been the story of ordinary people who dare to dream. That’s how we win the future.
We are a nation that says, “I might not have a lot of money, but I have this great idea for a new company. I might not come from a family of college graduates, but I will be the first to get my degree. I might not know those people in trouble, but I think I can help them, and I need to try. I’m not sure how we’ll reach that better place beyond the horizon, but I know we’ll get there. I know we will.”
We do big things.
The idea of America endures. Our destiny remains our choice. And tonight, more than two centuries later, it is because of our people that our future is hopeful, our journey goes forward, and the state of our union is strong.
Thank you, God Bless You, and may God Bless the United States of America.

Here’s a taste of the opening to the speech, in which the President rolls out his plan to “Win the Future.” You can read the rest at  The National Journal:

The following is the full text of the speech draft given to National Journal:
Tonight I want to begin by congratulating the men and women of the 112th Congress, as well as your new Speaker, John Boehner. And as we mark this occasion, we are also mindful of the empty chair in this Chamber, and pray for the health of our colleague – and our friend – Gabby Giffords.
It’s no secret that those of us here tonight have had our differences over the last two years. The debates have been contentious; we have fought fiercely for our beliefs. And that’s a good thing. That’s what a robust democracy demands. That’s what helps set us apart as a nation.
But there’s a reason the tragedy in Tucson gave us pause. Amid all the noise and passions and rancor of our public debate, Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater – something more consequential than party or political preference.
We are part of the American family. We believe that in a country where every race and faith and point of view can be found, we are still bound together as one people; that we share common hopes and a common creed; that the dreams of a little girl in Tucson are not so different than those of our own children, and that they all deserve the chance to be fulfilled.
That, too, is what sets us apart as a nation.