[Weekly Compilation of Presidential Documents Volume 33, Number 31 (Monday, August 4, 1997)]
[Pages 1155-1157]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on the Balanced Budget Agreement

July 29, 1997

    The President. Good afternoon. Ladies and gentlemen, we have the 
pleasure of announcing today an historic agreement that will benefit 
generations of Americans. Last night we reached agreement with Congress 
on detailed legislation to balance the budget in a way that honors our 
values, invests in our people, and cuts taxes for middle class families. 
After decades of deficits, we have put America's fiscal house in order 
again.
    Above all, we are investing in education, America's most important 
priority. I am particularly pleased that the first balanced budget in a 
generation is also the best education budget in a generation and the 
best for future generations.
    This agreement meets my goal of balancing the budget in a way that 
honors our values, invests in our people, and prepares America for the 
21st century. It is very, very good for our country. It's a victory for 
every parent who wants a good education for their children, for every 
child in a poor household who needs health care, for every immigrant 
struggling to make it here, for every family working to build a secure 
future. It is the best investment we can make in America's future.
    Let me underscore the magnitude of this achievement. Four and a half 
years ago, when this administration took office, America's budget 
deficit was $290 billion and rising. We put in place a comprehensive 
economic strategy to cut the deficit and invest

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in our people. The budget plan adopted in 1993 made a large contribution 
to today's conditions in America: a strong economy, low inflation, and a 
deficit that has already shrunk by more than 80 percent.
    The budget agreement that we announced today would not be possible 
had it not been for the tough vote taken in 1993 to set us on the right 
path. [Applause] Thank you. Now, this legislation will help to ensure 
the conditions for continued prosperity, keeping interest rates down, 
and spurring investment. And, just as important, it will give our people 
the tools to reap the rewards of economic growth.
    Let me mention just a few of the details of this plan: First, at the 
heart of this balanced budget is a historic investment in education, the 
most significant increase in education funding in more than 30 years. It 
includes $35 billion in tax relief to help families pay for college and 
training, the largest investment in higher education since the GI bill 
50 years ago. It will give every American who needs it a HOPE 
scholarship to pay for the first 2 years of college. It gives tax relief 
for all 4 years of college and for education throughout a lifetime. The 
overall budget agreement also includes the largest increase in Pell 
grant scholarships for deserving students in three decades, funds our 
America Reads Challenge, helps to connect all our schools and libraries 
to the Internet by the year 2000.
    As the spending bills move forward in weeks to come, we will work to 
see that they reflect this agreement. I am pleased that this legislation 
also will give communities substantial tax cuts to help to build and 
modernize our schools. All across America, I have challenged our people 
to make sure that every 8-year-old can read, every 12-year-old can log 
on to the Internet, every 18-year-old can go to college, every adult can 
keep learning for a lifetime. This balanced budget makes unprecedented 
progress toward those goals.
    Second, this a balanced budget that strengthens our families by 
extending health insurance coverage to up to 5 million children. By 
investing fully $24 billion, we will be able to provide quality medical 
care for these children, everything from regular checkups to major 
surgery. I want to thank all of the people in the Congress and among my 
fellow Democrats here who worked so hard on the health care issue, but I 
especially want to say a thanks to Senator Kennedy, Senator Rockefeller, 
and to the First Lady for what they have done over these years to help 
us to reach this important day.
    We want every child in America to grow up healthy and strong, and 
this investment takes a major step toward that goal. I'm also pleased 
that Congress agreed to pay for the children's health care in part with 
a new 15-cents-a-pack tax on cigarettes. Not only will this new revenue 
help to pay for health care, it will help prevent children from taking 
up smoking in the first place.
    Third, this is a balanced budget that provides modest tax relief to 
the middle class, helping families to raise their children, buy and sell 
a home, save for their retirement with expanded IRA's, and send their 
children to college. We fought very hard to make sure this tax cut 
helped a wide range of middle class parents, all those who are working 
hard to raise their children, pay their taxes, and be good citizens, and 
the agreement does just that.
    Fourth, this is a balanced budget that will help us finish the job 
of welfare reform, providing $3 billion to move welfare recipients to 
private sector jobs, keeping our promise made last year to provide $12 
billion to restore disability and health benefits for 350,000 legal 
immigrants. And, as the Vice President will describe, it will double the 
number of empowerment zones to bring the spark of private enterprise to 
our hardest pressed neighborhoods.
    Finally, this is a balanced budget that honors our commitment to our 
parents by extending the Medicare Trust Fund for a decade and to the 
next generation by continuing our commitment to the environment to 
protect our air, our land, our water, to clean up the worst toxic waste 
sites in the Nation. And we achieve all these goals while eliminating 
the budget deficit by 2002. We are determined never again to repeat the 
mistakes of the past, when we mortgaged our economy to reckless 
policies. This budget reforms and cuts yesterday's Government so that we 
can

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help provide our people the means to meet the challenges of tomorrow.
    Let me thank the negotiators for the administration who did a superb 
job, all the Democratic lawmakers here and, indeed, all of the Members 
of Congress who worked hard on this legislation. I also want to say a 
special word of appreciation to Senator Lott and Speaker Gingrich, to 
Senator Domenici and Congressman Kasich, and to their committee chairs 
who worked with us across the lines of substantial philosophical and 
practical differences to reach a good-faith agreement that is an 
honorable and principled compromise. And especially let me thank 
Senators Daschle and Lautenberg, Congressman Spratt, and Congressman 
Rangel for their leadership.
    This agreement is a monument to the efforts that people, who good 
will can make, when they put aside partisan interests to work together 
for the common good and our common future. It reflects the values and 
aspirations of all Americans, and I hope and expect it will marshal 
strong majorities of both parties in both Houses.
    This summer we had an historic opportunity to strengthen America for 
the 21st century, and we have seized it. Now our Nation can move forward 
stronger, more vibrant, more united than ever. For that, I am profoundly 
grateful.
    Now I'd like to ask the Vice President to come forward, and let me 
thank you all again for this great, great day.

[At this point, the Vice President and congressional leaders made brief 
remarks.]

    The President. Wait, wait. We forgot to say one thing. We still have 
to pass this agreement. [Laughter] And so, tomorrow, the next day--and I 
hope it will be over by then--all of us who are for it, in both parties, 
have a solemn obligation to go out there and try to keep moving and keep 
this spirit alive and actually pass it. We are celebrating an agreement. 
We still have to celebrate the passage of the bill and then the signing 
of the bill, and I look forward to being here for that with all of you 
and others as well.
    Thank you very much.

Note: The President spoke at 2:50 p.m. on the South Lawn at the White 
House.