[Congressional Record (Bound Edition), Volume 156 (2010), Part 1]
[Senate]
[Pages 754-759]
[From the U.S. Government Publishing Office, www.gpo.gov]




   REPORT ON THE STATE OF THE UNION DELIVERED TO A JOINT SESSION OF 
                  CONGRESS ON JANUARY 27, 2010--PM 42

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States which was ordered to lie on the 
table:

To the Congress of the United States:
  Madam Speaker, Vice President Biden, Members of Congress, 
distinguished guests, and fellow Americans:
  Our Constitution declares that from time to time, the President shall 
give to Congress information about the state of our Union. For 220 
years, our leaders have fulfilled this duty. They have done so during 
periods of prosperity and tranquility. And they have done so in the 
midst of war and depression; at moments of great strife and great 
struggle.
  It's tempting to look back on these moments and assume that our 
progress was inevitable--that America was always destined to succeed. 
But when the Union was turned back at Bull Run and the Allies first 
landed at Omaha Beach, victory was very much in doubt. When the market 
crashed on Black Tuesday and civil rights marchers were beaten on 
Bloody Sunday, the future was anything but certain. These were times 
that tested the courage of our convictions, and the strength of our 
Union. And despite all our divisions and disagreements; our hesitations 
and our fears; America prevailed because we chose to move forward as 
one Nation, and one people.
  Again, we are tested. And again, we must answer history's call.
  One year ago, I took office amid two wars, an economy rocked by 
severe recession, a financial system on the verge of collapse, and a 
Government deeply in debt. Experts from across the political spectrum 
warned that if we did not act, we might face a second depression. So we 
acted--immediately and aggressively. And 1 year later, the worst of the 
storm has passed.
  But the devastation remains. One in ten Americans still cannot find 
work. Many businesses have shuttered. Home values have declined. Small 
towns and rural communities have been hit especially hard. For those 
who had already known poverty, life became that much harder.
  This recession has also compounded the burdens that America's 
families have been dealing with for decades--the burden of working 
harder and longer for less; of being unable to save enough to retire or 
help kids with college.
  So I know the anxieties that are out there right now. They're not 
new. These struggles are the reason I ran for President. These 
struggles are what I've witnessed for years in places like Elkhart, 
Indiana and Galesburg, Illinois. I hear about them in the letters that 
I read each night. The toughest to read are those written by children--
asking why they have to move from their home, or when their mom or dad 
will be able to go back to work.
  For these Americans and so many others, change has not come fast 
enough. Some are frustrated; some are angry. They don't understand why 
it seems like bad behavior on Wall Street is rewarded but hard work on 
Main Street isn't; or why Washington has been unable or unwilling to 
solve any of our problems. They are tired of the partisanship and the 
shouting and the pettiness. They know we can't afford it. Not now.
  So we face big and difficult challenges. And what the American people 
hope--what they deserve--is for all of us, Democrats and Republicans, 
to work through our differences; to overcome the numbing weight of our 
politics. For while the people who sent us here have different 
backgrounds, different stories and different beliefs, the anxieties 
they face are the same. The aspirations they hold are shared. A job 
that pays the bills. A chance to get ahead. Most of all, the ability to 
give their children a better life.
  You know what else they share? They share a stubborn resilience in 
the face of adversity. After one of the most difficult years in our 
history, they remain

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busy building cars and teaching kids; starting businesses and going 
back to school. They're coaching little league and helping their 
neighbors. As one woman wrote me, ``We are strained but hopeful, 
struggling but encouraged.''
  It is because of this spirit--this great decency and great strength--
that I have never been more hopeful about America's future than I am 
tonight. Despite our hardships, our union is strong. We do not give up. 
We do not quit. We do not allow fear or division to break our spirit. 
In this new decade, it's time the American people get a Government that 
matches their decency; that embodies their strength. And tonight, I'd 
like to talk about how together, we can deliver on that promise.
  It begins with our economy.
  Our most urgent task upon taking office was to shore up the same 
banks that helped cause this crisis. It was not easy to do. And if 
there's one thing that has unified Democrats and Republicans, it's that 
we all hated the bank bailout. I hated it. You hated it. It was about 
as popular as a root canal.
  But when I ran for President, I promised I wouldn't just do what was 
popular--I would do what was necessary. And if we had allowed the 
meltdown of the financial system, unemployment might be double what it 
is today. More businesses would certainly have closed. More homes would 
have surely been lost.
  So I supported the last Administration's efforts to create the 
financial rescue program. And when we took the program over, we made it 
more transparent and accountable. As a result, the markets are now 
stabilized, and we have recovered most of the money we spent on the 
banks.
  To recover the rest, I have proposed a fee on the biggest banks. I 
know Wall Street isn't keen on this idea, but if these firms can afford 
to hand out big bonuses again, they can afford a modest fee to pay back 
the taxpayers who rescued them in their time of need.
  As we stabilized the financial system, we also took steps to get our 
economy growing again, save as many jobs as possible, and help 
Americans who had become unemployed.
  That's why we extended or increased unemployment benefits for more 
than 18 million Americans; made health insurance 65 percent cheaper for 
families who get their coverage through COBRA; and passed 25 different 
tax cuts.
  Let me repeat: we cut taxes. We cut taxes for 95 percent of working 
families. We cut taxes for small businesses. We cut taxes for first-
time homebuyers. We cut taxes for parents trying to care for their 
children. We cut taxes for 8 million Americans paying for college. As a 
result, millions of Americans had more to spend on gas, and food, and 
other necessities, all of which helped businesses keep more workers. 
And we haven't raised income taxes by a single dime on a single person. 
Not a single dime.
  Because of the steps we took, there are about 2 million Americans 
working right now who would otherwise be unemployed. Two hundred 
thousand work in construction and clean energy. Three hundred thousand 
are teachers and other education workers. Tens of thousands are cops, 
firefighters, correctional officers, and first responders. And we are 
on track to add another one and a half million jobs to this total by 
the end of the year.
  The plan that has made all of this possible, from the tax cuts to the 
jobs, is the Recovery Act. That's right--the Recovery Act, also known 
as the Stimulus Bill. Economists on the left and the right say that 
this bill has helped saved jobs and avert disaster. But you don't have 
to take their word for it.
  Talk to the small business in Phoenix that's about to triple its 
workforce because of the Recovery Act.
  Talk to the window manufacturer in Philadelphia who said he used to 
be skeptical about the Recovery Act, until he had to add two more work 
shifts just because of the business it created.
  Talk to the single teacher raising two kids who was told by her 
principal on the last week of school that because of the Recovery Act, 
she wouldn't be laid off after all.
  There are stories like this all across America. And after 2 years of 
recession, the economy is growing again. Retirement funds have started 
to gain back some of their value. Businesses are beginning to invest 
again, and slowly some are starting to hire again.
  But I realize that for every success story, there are other stories, 
of men and women who wake up with the anguish of not knowing where 
their next paycheck will come from; who send out resumes week after 
week and hear nothing in response. That is why jobs must continue to be 
our number one focus in 2010. And that is why I am calling for a new 
jobs bill tonight.
  Now, the true engine of job creation in this country will always be 
America's businesses. But Government can create the conditions 
necessary for businesses to expand and hire more workers.
  We should start where most new jobs do--in small businesses, 
companies that begin when an entrepreneur takes a chance on a dream, or 
a worker decides it's time she became her own boss.
  Through sheer grit and determination, these companies have weathered 
the recession and are ready to grow. But when you talk to small 
business owners in places like Allentown, Pennsylvania or Elyria, Ohio, 
you find out that even though banks on Wall Street are lending again, 
they are mostly lending to bigger companies. But financing remains 
difficult for small business owners across the country.
  So tonight, I'm proposing that we take $30 billion of the money Wall 
Street banks have repaid and use it to help community banks give small 
businesses the credit they need to stay afloat. I am also proposing a 
new small business tax credit--one that will go to over 1 million small 
businesses who hire new workers or raise wages. While we're at it, 
let's also eliminate all capital gains taxes on small business 
investment; and provide a tax incentive for all businesses, large and 
small, to invest in new plants and equipment.
  Next, we can put Americans to work today building the infrastructure 
of tomorrow. From the first railroads to the interstate highway system, 
our Nation has always been built to compete. There's no reason Europe 
or China should have the fastest trains, or the new factories that 
manufacture clean energy products.
  Tomorrow, I'll visit Tampa, Florida, where workers will soon break 
ground on a new high-speed railroad funded by the Recovery Act. There 
are projects like that all across this country that will create jobs 
and help our Nation move goods, services, and information. We should 
put more Americans to work building clean energy facilities, and give 
rebates to Americans who make their homes more energy efficient, which 
supports clean energy jobs. And to encourage these and other businesses 
to stay within our borders, it's time to finally slash the tax breaks 
for companies that ship our jobs overseas and give those tax breaks to 
companies that create jobs in the United States of America.
  The House has passed a jobs bill that includes some of these steps. 
As the first order of business this year, I urge the Senate to do the 
same. People are out of work. They are hurting. They need our help. And 
I want a jobs bill on my desk without delay.
  But the truth is, these steps still won't make up for the seven 
million jobs we've lost over the last 2 years. The only way to move to 
full employment is to lay a new foundation for long-term economic 
growth, and finally address the problems that America's families have 
confronted for years.
  We cannot afford another so-called economic ``expansion'' like the 
one from last decade--what some call the ``lost decade''--where jobs 
grew more slowly than during any prior expansion; where the income of 
the average American household declined while the cost of health care 
and tuition reached record highs; where prosperity was built on a 
housing bubble and financial speculation.
  From the day I took office, I have been told that addressing our 
larger challenges is too ambitious--that such

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efforts would be too contentious, that our political system is too 
gridlocked, and that we should just put things on hold for awhile.
  For those who make these claims, I have one simple question:
  How long should we wait? How long should America put its future on 
hold?
  You see, Washington has been telling us to wait for decades, even as 
the problems have grown worse. Meanwhile, China's not waiting to revamp 
its economy. Germany's not waiting. India's not waiting. These nations 
aren't standing still. These nations aren't playing for second place. 
They're putting more emphasis on math and science. They're rebuilding 
their infrastructure. They are making serious investments in clean 
energy because they want those jobs.
  I do not accept second-place for the United States of America. As 
hard as it may be, as uncomfortable and contentious as the debates may 
be, it's time to get serious about fixing the problems that are 
hampering our growth.
  One place to start is serious financial reform. Look, I am not 
interested in punishing banks, I'm interested in protecting our 
economy. A strong, healthy financial market makes it possible for 
businesses to access credit and create new jobs. It channels the 
savings of families into investments that raise incomes. But that can 
only happen if we guard against the same recklessness that nearly 
brought down our entire economy.
  We need to make sure consumers and middle-class families have the 
information they need to make financial decisions. We can't allow 
financial institutions, including those that take your deposits, to 
take risks that threaten the whole economy.
  The House has already passed financial reform with many of these 
changes. And the lobbyists are already trying to kill it. Well, we 
cannot let them win this fight. And if the bill that ends up on my desk 
does not meet the test of real reform, I will send it back.
  Next, we need to encourage American innovation. Last year, we made 
the largest investment in basic research funding in history--an 
investment that could lead to the world's cheapest solar cells or 
treatment that kills cancer cells but leaves healthy ones untouched. 
And no area is more ripe for such innovation than energy. You can 
already see the results of last year's investment in clean energy--in 
the North Carolina company that will create 1,200 jobs making advanced 
batteries; or in the California business that's putting thousands to 
work making solar panels.
  But to create more of these clean energy jobs, we need more 
production, more efficiency, more incentives. That means building a new 
generation of safe, clean nuclear power plants in this country. It 
means making tough decisions about opening new offshore areas for oil 
and gas development. It means continued investment in advanced biofuels 
and clean coal technologies. And yes, it means passing a comprehensive 
energy and climate bill with incentives that will finally make clean 
energy the profitable kind of energy in America.
  I am grateful to the House for passing such a bill last year. This 
year, I am eager to help advance the bipartisan effort in the Senate. I 
know there have been questions about whether we can afford such changes 
in a tough economy; and I know that there are those who disagree with 
the overwhelming scientific evidence on climate change. But even if you 
are a doubter, providing incentives for energy efficiency and clean 
energy are the right thing to do for our future--because the nation 
that leads the clean energy economy will be the nation that leads the 
global economy. And America must be that Nation.
  Third, we need to export more of our goods. Because the more products 
we make and sell to other countries, the more jobs we support here in 
America. So tonight, we set a new goal: We will double our exports over 
the next 5 years, an increase that will support two million jobs in 
America. To help meet this goal, we're launching a National Export 
Initiative that will help farmers and small businesses increase their 
exports, and reform export controls consistent with national security.
  We have to seek new markets aggressively, just as our competitors 
are. If America sits on the sidelines while other nations sign trade 
deals, we will lose the chance to create jobs on our shores. But 
realizing those benefits also means enforcing those agreements so our 
trading partners play by the rules. And that's why we will continue to 
shape a Doha trade agreement that opens global markets, and why we will 
strengthen our trade relations in Asia and with key partners like South 
Korea, Panama, and Colombia.
  Fourth, we need to invest in the skills and education of our people.
  This year, we have broken through the stalemate between left and 
right by launching a national competition to improve our schools. The 
idea here is simple: instead of rewarding failure, we only reward 
success. Instead of funding the status quo, we only invest in reform--
reform that raises student achievement, inspires students to excel in 
math and science, and turns around failing schools that steal the 
future of too many young Americans, from rural communities to inner-
cities. In the 21st century, one of the best anti-poverty programs is a 
world-class education. We cannot settle for an America where the 
success of our children depends more on their zip code than their 
potential. And when we renew the Elementary and Secondary Education 
Act, we will work with Congress to expand these reforms to all 50 
states.
  Still, in this economy, a high school diploma no longer guarantees a 
good job. I urge the Senate to follow the House and pass a bill that 
will revitalize our community colleges, which are a career pathway to 
the children of so many working families. To make college more 
affordable, this bill will finally end the unwarranted taxpayer-
subsidies that go to banks for student loans. Instead, let's take that 
money and give families $10,000 for 4 years of college and increase 
Pell Grants. And let's tell another one million students that when they 
graduate, they will be required to pay only ten percent of their income 
on student loans. Because in the United States of America, no one 
should go broke because they chose to go to college. And it's time for 
colleges and universities to get serious about cutting their own 
costs--because they too have a responsibility to help solve this 
problem.
  Now, the price of college tuition is just one of the burdens facing 
the middle-class. That's why last year I asked Vice President Biden to 
chair a task force on Middle-Class Families. That's why we're nearly 
doubling the child care tax credit, and making it easier to save for 
retirement by giving every worker access to a retirement account and 
expanding the tax credit for those who start a nest egg. That's why 
we're working to lift the value of a family's single largest 
investment--their home. The steps we took last year to shore up the 
housing market have allowed millions of Americans to take out new loans 
and save an average of $1,500 on mortgage payments. This year, we will 
step up re-financing so that homeowners can move into more affordable 
mortgages.
  And that's why we still need health insurance reform--because there 
is no greater long-term burden on middle-class families.
  Now let's be clear--I did not choose to tackle this issue to get some 
legislative victory under my belt. And by now it should be fairly 
obvious that I didn't take on health care because it was good politics.
  I took on health care because of the stories I've heard from 
Americans with pre-existing conditions whose lives depend on getting 
coverage; patients who've been denied coverage; and families--even 
those with insurance--who are just one illness away from financial 
ruin.
  After nearly a century of trying, we are closer than ever to bringing 
more security to the lives of so many Americans. The approach we've 
taken would protect every American from the worst practices of the 
insurance industry. It would give small businesses and uninsured 
Americans a chance to choose an affordable health care plan in a 
competitive market. It would require every

[[Page 757]]

insurance plan to cover preventive care. And I want to acknowledge our 
First Lady, Michelle Obama, who this year is creating a national 
movement to tackle the epidemic of childhood obesity and make our kids 
healthier.
  Our approach would preserve the right of Americans who have insurance 
to keep their doctor and their plan. It would reduce costs and premiums 
for families and businesses. And according to the Congressional Budget 
Office--the independent organization that both parties have cited as 
the official scorekeeper for Congress--our approach would bring down 
the deficit by as much as $1 trillion over the next two decades.
  Still, this is a complex issue, and the longer it was debated, the 
more skeptical people became. I take my share of the blame for not 
explaining it more clearly to the American people. And I know that with 
all the lobbying and horse-trading, this process left most Americans 
wondering what's in it for them.
  But I also know this problem is not going away. By the time I'm 
finished speaking tonight, more Americans will have lost their health 
insurance. Millions will lose it this year. Our deficit will grow. 
Premiums will go up. Patients will be denied the care they need. Small 
business owners will continue to drop coverage altogether.
  I will not walk away from these Americans. And neither should the 
people in this chamber. As temperatures cool, I want everyone to take a 
second look at the plan we've proposed. There's a reason why many 
doctors, nurses, and health care experts across the country consider 
this approach a vast improvement over the status quo. But if anyone 
from either party has a better approach that will bring down premiums, 
bring down the deficit, cover the uninsured, strengthen Medicare for 
seniors, and stop insurance company abuses, let me know. Here's what I 
ask of Congress, though: Do not walk away from reform. Not now. Not 
when we are so close. Let us find a way to come together and finish the 
job for the American people.
  Now, even as health care reform would reduce our deficit, it's not 
enough to dig us out of a massive fiscal hole in which we find 
ourselves. It's a challenge that makes all others that much harder to 
solve, and one that's been subject to a lot of political posturing.
  So let me start the discussion of Government spending by setting the 
record straight. At the beginning of the last decade, America had a 
budget surplus of over $200 billion. By the time I took office, we had 
a 1 year deficit of over $1 trillion and projected deficits of $8 
trillion over the next decade. Most of this was the result of not 
paying for two wars, two tax cuts, and an expensive prescription drug 
program. On top of that, the effects of the recession put a $3 trillion 
hole in our budget. That was before I walked in the door.
  Now if we had taken office in ordinary times, I would have liked 
nothing more than to start bringing down the deficit. But we took 
office amid a crisis, and our efforts to prevent a second Depression 
have added another $1 trillion to our national debt.
  I am absolutely convinced that was the right thing to do. But 
families across the country are tightening their belts and making tough 
decisions. The Federal Government should do the same. So tonight, I'm 
proposing specific steps to pay for the $1 trillion that it took to 
rescue the economy last year.
  Starting in 2011, we are prepared to freeze government spending for 3 
years. Spending related to our national security, Medicare, Medicaid, 
and Social Security will not be affected. But all other discretionary 
Government programs will. Like any cash-strapped family, we will work 
within a budget to invest in what we need and sacrifice what we don't. 
And if I have to enforce this discipline by veto, I will.
  We will continue to go through the budget line by line to eliminate 
programs that we can't afford and don't work. We've already identified 
$20 billion in savings for next year. To help working families, we will 
extend our middle-class tax cuts. But at a time of record deficits, we 
will not continue tax cuts for oil companies, investment fund managers, 
and those making over $250,000 a year. We just can't afford it.
  Now, even after paying for what we spent on my watch, we will still 
face the massive deficit we had when I took office. More importantly, 
the cost of Medicare, Medicaid, and Social Security will continue to 
skyrocket. That's why I've called for a bipartisan, Fiscal Commission, 
modeled on a proposal by Republican Judd Gregg and Democrat Kent 
Conrad. This can't be one of those Washington gimmicks that lets us 
pretend we solved a problem. The Commission will have to provide a 
specific set of solutions by a certain deadline. Yesterday, the Senate 
blocked a bill that would have created this commission. So I will issue 
an executive order that will allow us to go forward, because I refuse 
to pass this problem on to another generation of Americans. And when 
the vote comes tomorrow, the Senate should restore the pay-as-you-go 
law that was a big reason why we had record surpluses in the 1990s.
  I know that some in my own party will argue that we cannot address 
the deficit or freeze Government spending when so many are still 
hurting. I agree, which is why this freeze will not take effect until 
next year, when the economy is stronger. But understand--if we do not 
take meaningful steps to rein in our debt, it could damage our fragile 
markets, increase the cost of borrowing, and jeopardize our recovery--
all of which could have an even worse effect on our job growth and 
family incomes.
  From the right, I expect we'll hear that we should make fewer 
investments in our people, extend tax cuts for wealthier Americans, 
eliminate more regulations, and maintain the status quo on health care. 
The problem is, that's what we did for 8 years. That's what helped lead 
us into this crisis. It's what helped lead to these deficits. And we 
cannot do it again.
  Rather than fight the same tired battles that have dominated 
Washington for decades, it's time to try something new. Let's invest in 
our people without leaving them a mountain of debt. Let's meet our 
responsibility to the citizens who sent us here. Let's try common 
sense.
  To do that, we have to recognize that we face more than a deficit of 
dollars right now. We face a deficit of trust--deep and corrosive 
doubts about how Washington works that have been growing for years. To 
close that credibility gap we must take action on both ends of 
Pennsylvania Avenue to end the outsized influence of lobbyists; to do 
our work openly; and to give our people the Government they deserve.
  That's what I came to Washington to do. That's why--for the first 
time in history--my Administration posts our White House visitors 
online. And that's why we've excluded lobbyists from policy-making jobs 
or seats on Federal boards and commissions.
  But we can't stop there. It's time to require lobbyists to disclose 
each contact they make on behalf of a client with my Administration or 
Congress. And it's time to put strict limits on the contributions that 
lobbyists give to candidates for Federal office. Last week, the Supreme 
Court reversed a century of law to open the floodgates for special 
interests--including foreign corporations--to spend without limit in 
our elections. Well, I don't think American elections should be 
bankrolled by America's most powerful interests, or worse, by foreign 
entities. They should be decided by the American people, and that's why 
I'm urging Democrats and Republicans to pass a bill that helps to right 
this wrong.
  I'm also calling on Congress to continue down the path of earmark 
reform. You have trimmed some of this spending and embraced some 
meaningful change. But restoring the public trust demands more. For 
example, some members of Congress post some earmark requests online. 
Tonight, I'm calling on Congress to publish all earmark requests on a 
single website before there's a vote so that the American people can 
see how their money is being spent.
  Of course, none of these reforms will even happen if we don't also 
reform how we work with one another.

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  I am not naive. I never thought the mere fact of my election would 
usher in peace, harmony, and some post-partisan era. I knew that both 
parties have fed divisions that are deeply entrenched. And on some 
issues, there are simply philosophical differences that will always 
cause us to part ways. These disagreements, about the role of 
Government in our lives, about our national priorities and our national 
security, have been taking place for over 200 years. They are the very 
essence of our democracy.
  But what frustrates the American people is a Washington where every 
day is Election Day. We cannot wage a perpetual campaign where the only 
goal is to see who can get the most embarrassing headlines about their 
opponent--a belief that if you lose, I win. Neither party should delay 
or obstruct every single bill just because they can. The confirmation 
of well-qualified public servants should not be held hostage to the pet 
projects or grudges of a few individual Senators. Washington may think 
that the vitriol spilled out on cable and talk radio is just part of 
the game; that saying anything about the other side, no matter how 
false, is what it takes to get power. But it is precisely such politics 
that has stopped either party from helping the American people. Worse 
yet, it is sowing further division among our citizens and further 
distrust in our Government.
  So no, I will not give up on changing the tone of our politics. I 
know it's an election year. And after last week, it is clear that 
campaign fever has come even earlier than usual. But we still need to 
govern. To Democrats, I would remind you that we still have the largest 
majority in decades, and the people expect us to solve some problems, 
not run for the hills. And if the Republican leadership is going to 
insist that 60 votes in the Senate are required to do any business at 
all in this town, then the responsibility to govern is now yours as 
well. Just saying no to everything may be good short-term politics, but 
it's not leadership. We were sent here to serve our citizens, not our 
ambitions. So let's show the American people that we can do it 
together. This week, I'll be addressing a meeting of the House 
Republicans. And I would like to begin monthly meetings with both the 
Democratic and Republican leadership. I know you can't wait.
  Throughout our history, no issue has united this country more than 
our security. Sadly, the unity we felt after 9/11 has dissipated. We 
can argue all we want about who's to blame for this, but I am not 
interested in re-litigating the past. I know that all of us love this 
country. All of us are committed to its defense. So let's put aside the 
schoolyard taunts about who is tough. Let's reject the false choice 
between protecting our people and upholding our values. Let's leave 
behind the fear and division, and do what it takes to defend our Nation 
and forge a more hopeful future--for America and the world.
  That is the work we began last year. Since the day I took office, we 
have renewed our focus on the terrorists who threaten our Nation. We 
have made substantial investments in our homeland security and 
disrupted plots that threatened to take American lives. We are filling 
unacceptable gaps revealed by the failed Christmas attack, with better 
airline security, and swifter action on our intelligence. We have 
prohibited torture and strengthened partnerships from the Pacific to 
South Asia to the Arabian Peninsula. And in the last year, hundreds of 
al Qaeda's fighters and affiliates, including many senior leaders, have 
been captured or killed--far more than in 2008.
  In Afghanistan, we are increasing our troops and training Afghan 
Security Forces so they can begin to take the lead in July of 2011, and 
our troops can begin to come home. We will reward good governance, 
reduce corruption, and support the rights of all Afghans--men and women 
alike. We are joined by allies and partners who have increased their 
own commitment, and who will come together tomorrow in London to 
reaffirm our common purpose. There will be difficult days ahead. But I 
am confident we will succeed.
  As we take the fight to al Qaeda, we are responsibly leaving Iraq to 
its people. As a candidate, I promised that I would end this war, and 
that is what I am doing as President. We will have all of our combat 
troops out of Iraq by the end of this August. We will support the Iraqi 
government as they hold elections, and continue to partner with the 
Iraqi people to promote regional peace and prosperity. But make no 
mistake: this war is ending, and all of our troops are coming home.
  Tonight, all of our men and women in uniform--in Iraq, Afghanistan, 
and around the world--must know that they have our respect, our 
gratitude, and our full support. And just as they must have the 
resources they need in war, we all have a responsibility to support 
them when they come home. That is why we made the largest increase in 
investments for veterans in decades. That is why we are building a 21st 
century VA. And that is why Michelle has joined with Jill Biden to 
forge a national commitment to support military families.
  Even as we prosecute two wars, we are also confronting the greatest 
danger to the American people--the threat of nuclear weapons. I have 
embraced the vision of John F. Kennedy and Ronald Reagan through a 
strategy that reverses the spread of these weapons, and seeks a world 
without them. To reduce our stockpiles and launchers, while ensuring 
our deterrent, the United States and Russia are completing negotiations 
on the farthest-reaching arms control treaty in nearly two decades. And 
at April's Nuclear Security Summit, we will bring 44 nations together 
behind a clear goal: securing all vulnerable nuclear materials around 
the world in 4 years, so that they never fall into the hands of 
terrorists.
  These diplomatic efforts have also strengthened our hand in dealing 
with those nations that insist on violating international agreements in 
pursuit of these weapons. That is why North Korea now faces increased 
isolation, and stronger sanctions--sanctions that are being vigorously 
enforced. That is why the international community is more united, and 
the Islamic Republic of Iran is more isolated. And as Iran's leaders 
continue to ignore their obligations, there should be no doubt: they, 
too, will face growing consequences.
  That is the leadership that we are providing--engagement that 
advances the common security and prosperity of all people. We are 
working through the G-20 to sustain a lasting global recovery. We are 
working with Muslim communities around the world to promote science, 
education, and innovation. We have gone from a bystander to a leader in 
the fight against climate change. We are helping developing countries 
to feed themselves, and continuing the fight against HIV/AIDS. And we 
are launching a new initiative that will give us the capacity to 
respond faster and more effectively to bio-terrorism or an infectious 
disease--a plan that will counter threats at home, and strengthen 
public health abroad.
  As we have for over 60 years, America takes these actions because our 
destiny is connected to those beyond our shores. But we also do it 
because it is right. That is why, as we meet here tonight, over 10,000 
Americans are working with many nations to help the people of Haiti 
recover and rebuild. That is why we stand with the girl who yearns to 
go to school in Afghanistan; we support the human rights of the women 
marching through the streets of Iran; and we advocate for the young man 
denied a job by corruption in Guinea. For America must stand on the 
side of freedom and human dignity.
  Abroad, America's greatest source of strength is our ideals. The same 
is true at home. We find unity in our incredible diversity, drawing on 
the promise enshrined in our Constitution: that no matter who you are 
or what you look like, if you abide by the law you should be protected 
by it; if you adhere to our common values you should be treated no 
different than anyone else.
  We must carry this promise forward. My Administration has a Civil 
Rights Division that is once again prosecuting civil rights violations 
and employment discrimination. We finally strengthened our laws to 
protect against crimes driven by hate. This year, I will work with 
Congress and our military to finally repeal the law that denies gay

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Americans the right to serve the country they love because of who they 
are. We are going to crack down on violations of equal pay laws--so 
that women get equal pay for an equal day's work. And we should 
continue the work of fixing our broken immigration system--to secure 
our borders and enforce our laws so that everyone plays by the rules.
  In the end, it is our ideals, our values that built America--values 
that allowed us to forge a Nation made up of immigrants from every 
corner of the globe; values that drive our citizens still. Every day, 
they meet their responsibilities to their families and their employers. 
Time and again, they lend a hand to their neighbors and give back to 
their country. They take pride in their labor, and are generous in 
spirit. These aren't Republican values or Democratic values they're 
living by; business values or labor values. They are American values.
  Unfortunately, too many of our citizens have lost faith that our 
biggest institutions--our corporations, our media, and yes, our 
Government--still reflect these same values. Each of these institutions 
are full of honorable men and women doing important work for the 
country. But each time a CEO rewards himself for failure, or a banker 
puts the rest of us at risk for his own selfish gain, people's doubts 
grow. Each time lobbyists game the system or politicians tear each 
other down instead of lifting this country up, we lose faith. The more 
that TV pundits reduce serious debates into silly arguments, and big 
issues into sound bites, our citizens turn away.
  No wonder there's so much cynicism out there. No wonder there's so 
much disappointment.
  I campaigned on the promise of change--change we can believe in, the 
slogan went. And right now, I know there are many Americans who aren't 
sure if they still believe we can change.
  But remember this--I never suggested that change would be easy. 
Democracy in a Nation of three hundred million people can be noisy and 
messy and complicated. And when you try to do big things and make big 
changes, it stirs passions and controversy. That's just how it is.
  Of course, those of us in public office can respond to this reality 
by playing it safe and keeping our poll numbers high. We can avoid 
telling hard truths. We can kick hard problems down the road. We can do 
what's necessary to get through the next election instead of what's 
best for the next generation.
  But I also know this: if people had made that decision 50 years ago 
or 100 years ago or 200 years ago, we wouldn't be here tonight. The 
only reason we are is because generations of Americans were unafraid to 
do what was hard; to do what was needed even when success was 
uncertain; to do what it took to keep the dream of this Nation alive 
for their children and grandchildren.
  Our Administration has had some political setbacks this year, and 
some of them were deserved. But I wake up every day knowing that they 
are nothing compared to the setbacks that families all across this 
country have faced this year. And what keeps me going--what keeps me 
fighting--is that despite all these setbacks, that spirit of 
determination and optimism--that fundamental decency that has always 
been at the core of the American people--lives on.
  It lives on in the struggling small business owner who wrote to me of 
his company, ``None of us,'' he said, `` . . . are willing to consider, 
even slightly, that we might fail.''
  It lives on in the woman who said that even though she and her 
neighbors have felt the pain of recession, ``We are strong. We are 
resilient. We are American.''
  It lives on in the 8-year-old boy in Louisiana, who just sent me his 
allowance and asked if I would give it to the people of Haiti. And it 
lives on in all the Americans who've dropped everything to go some 
place they've never been and pull people they've never known from 
rubble, prompting chants of ``U.S.A.! U.S.A.! U.S.A!'' when another 
life was saved.
  The spirit that has sustained this Nation for more than two centuries 
lives on in you, its people. We have finished a difficult year. We have 
come through a difficult decade. But a new year has come. A new decade 
stretches before us. We don't quit. I don't quit. Let's seize this 
moment--to start anew, to carry the dream forward, and to strengthen 
our Union once more.
  Thank you. God Bless You. And God Bless the United States of America.
                                                        Barack Obama.  
The White House, January 27, 2010.

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