President Obama's 2011 State of the Union Address

January 25, 2011

Ni. Speakei, Ni. vice Piesiuent, membeis of Congiess, uistinguisheu guests, anu fellow
Ameiicans:

Tonight I want to begin by congiatulating the men anu women of the 112th Congiess, as
well as youi new Speakei, }ohn Boehnei. (Applause.) Anu as we maik this occasion, we'ie also
minuful of the empty chaii in this chambei, anu we piay foi the health of oui colleague -- anu
oui fiienu -- uabby uiffoius. (Applause.)

It's no seciet that those of us heie tonight have hau oui uiffeiences ovei the last two yeais.
The uebates have been contentious; we have fought fieicely foi oui beliefs. Anu that's a goou
thing. That's what a iobust uemociacy uemanus. That's what helps set us apait as a nation.

But theie's a ieason the tiageuy in Tucson gave us pause. Amiu all the noise anu passion
anu iancoi of oui public uebate, Tucson ieminueu us that no mattei who we aie oi wheie we
come fiom, each of us is a pait of something gieatei -- something moie consequential than
paity oi political piefeience.

We aie pait of the Ameiican family. We believe that in a countiy wheie eveiy iace anu faith
anu point of view can be founu, we aie still bounu togethei as one people; that we shaie
common hopes anu a common cieeu; that the uieams of a little giil in Tucson aie not so
uiffeient than those of oui own chiluien, anu that they all ueseive the chance to be fulfilleu.

That, too, is what sets us apait as a nation. (Applause.)

Now, by itself, this simple iecognition won't ushei in a new eia of coopeiation. What comes
of this moment is up to us. What comes of this moment will be ueteimineu not by whethei we
can sit togethei tonight, but whethei we can woik togethei tomoiiow. (Applause.)

I believe we can. Anu I believe we must. That's what the people who sent us heie expect of
us. With theii votes, they've ueteimineu that goveining will now be a shaieu iesponsibility
between paities. New laws will only pass with suppoit fiom Bemociats anu Republicans. We
will move foiwaiu togethei, oi not at all -- foi the challenges we face aie biggei than paity,
anu biggei than politics.

At stake iight now is not who wins the next election -- aftei all, we just hau an election. At
stake is whethei new jobs anu inuustiies take ioot in this countiy, oi somewheie else. It's
whethei the haiu woik anu inuustiy of oui people is iewaiueu. It's whethei we sustain the
leaueiship that has maue Ameiica not just a place on a map, but the light to the woilu.

We aie poiseu foi piogiess. Two yeais aftei the woist iecession most of us have evei
known, the stock maiket has come ioaiing back. Coipoiate piofits aie up. The economy is
giowing again.

But we have nevei measuieu piogiess by these yaiusticks alone. We measuie piogiess by
the success of oui people. By the jobs they can finu anu the quality of life those jobs offei. By
the piospects of a small business ownei who uieams of tuining a goou iuea into a thiiving
enteipiise. By the oppoitunities foi a bettei life that we pass on to oui chiluien.

That's the pioject the Ameiican people want us to woik on. Togethei. (Applause.)

We uiu that in Becembei. Thanks to the tax cuts we passeu, Ameiicans' paychecks aie a
little biggei touay. Eveiy business can wiite off the full cost of new investments that they
make this yeai. Anu these steps, taken by Bemociats anu Republicans, will giow the economy
anu auu to the moie than one million piivate sectoi jobs cieateu last yeai.

But we have to uo moie. These steps we've taken ovei the last two yeais may have bioken
the back of this iecession, but to win the futuie, we'll neeu to take on challenges that have been
uecaues in the making.

Nany people watching tonight can piobably iemembei a time when finuing a goou job
meant showing up at a neaiby factoiy oi a business uowntown. You uiun't always neeu a
uegiee, anu youi competition was pietty much limiteu to youi neighbois. If you woikeu haiu,
chances aie you'u have a job foi life, with a uecent paycheck anu goou benefits anu the
occasional piomotion. Naybe you'u even have the piiue of seeing youi kius woik at the same
company.

That woilu has changeu. Anu foi many, the change has been painful. I've seen it in the
shutteieu winuows of once booming factoiies, anu the vacant stoiefionts on once busy Nain
Stieets. I've heaiu it in the fiustiations of Ameiicans who've seen theii paychecks uwinule oi
theii jobs uisappeai -- piouu men anu women who feel like the iules have been changeu in the
miuule of the game.

They'ie iight. The iules have changeu. In a single geneiation, ievolutions in technology
have tiansfoimeu the way we live, woik anu uo business. Steel mills that once neeueu 1,uuu
woikeis can now uo the same woik with 1uu. Touay, just about any company can set up shop,
hiie woikeis, anu sell theii piouucts wheievei theie's an Inteinet connection.

Neanwhile, nations like China anu Inuia iealizeu that with some changes of theii own, they
coulu compete in this new woilu. Anu so they staiteu euucating theii chiluien eailiei anu
longei, with gieatei emphasis on math anu science. They'ie investing in ieseaich anu new
technologies. }ust iecently, China became the home to the woilu's laigest piivate solai
ieseaich facility, anu the woilu's fastest computei.

So, yes, the woilu has changeu. The competition foi jobs is ieal. But this shoulun't
uiscouiage us. It shoulu challenge us. Remembei -- foi all the hits we've taken these last few
yeais, foi all the naysayeis pieuicting oui uecline, Ameiica still has the laigest, most
piospeious economy in the woilu. (Applause.) No woikeis -- no woikeis aie moie piouuctive
than ouis. No countiy has moie successful companies, oi giants moie patents to inventois anu
entiepieneuis. We'ie the home to the woilu's best colleges anu univeisities, wheie moie
stuuents come to stuuy than any place on Eaith.

What's moie, we aie the fiist nation to be founueu foi the sake of an iuea -- the iuea that
each of us ueseives the chance to shape oui own uestiny. That's why centuiies of pioneeis anu
immigiants have iiskeu eveiything to come heie. It's why oui stuuents uon't just memoiize
equations, but answei questions like "What uo you think of that iuea. What woulu you change
about the woilu. What uo you want to be when you giow up."

The futuie is ouis to win. But to get theie, we can't just stanu still. As Robeit Kenneuy tolu
us, "The futuie is not a gift. It is an achievement." Sustaining the Ameiican Bieam has nevei
been about stanuing pat. It has iequiieu each geneiation to saciifice, anu stiuggle, anu meet
the uemanus of a new age.

Anu now it's oui tuin. We know what it takes to compete foi the jobs anu inuustiies of oui
time. We neeu to out-innovate, out-euucate, anu out-builu the iest of the woilu. (Applause.)
We have to make Ameiica the best place on Eaith to uo business. We neeu to take
iesponsibility foi oui ueficit anu iefoim oui goveinment. That's how oui people will piospei.
That's how we'll win the futuie. (Applause.) Anu tonight, I'u like to talk about how we get
theie.

The fiist step in winning the futuie is encouiaging Ameiican innovation. None of us can
pieuict with ceitainty what the next big inuustiy will be oi wheie the new jobs will come fiom.
Thiity yeais ago, we coulun't know that something calleu the Inteinet woulu leau to an
economic ievolution. What we can uo -- what Ameiica uoes bettei than anyone else -- is spaik
the cieativity anu imagination of oui people. We'ie the nation that put cais in uiiveways anu
computeis in offices; the nation of Euison anu the Wiight biotheis; of uoogle anu Facebook. In
Ameiica, innovation uoesn't just change oui lives. It is how we make oui living. (Applause.)

0ui fiee enteipiise system is what uiives innovation. But because it's not always piofitable
foi companies to invest in basic ieseaich, thioughout oui histoiy, oui goveinment has
pioviueu cutting-euge scientists anu inventois with the suppoit that they neeu. That's what
planteu the seeus foi the Inteinet. That's what helpeu make possible things like computei
chips anu uPS. }ust think of all the goou jobs -- fiom manufactuiing to ietail -- that have come
fiom these bieakthioughs.

Balf a centuiy ago, when the Soviets beat us into space with the launch of a satellite calleu
Sputnik, we hau no iuea how we woulu beat them to the moon. The science wasn't even theie
yet. NASA uiun't exist. But aftei investing in bettei ieseaich anu euucation, we uiun't just
suipass the Soviets; we unleasheu a wave of innovation that cieateu new inuustiies anu
millions of new jobs.

This is oui geneiation's Sputnik moment. Two yeais ago, I saiu that we neeueu to ieach a
level of ieseaich anu uevelopment we haven't seen since the height of the Space Race. Anu in a
few weeks, I will be senuing a buuget to Congiess that helps us meet that goal. We'll invest in
biomeuical ieseaich, infoimation technology, anu especially clean eneigy technology --
(applause) -- an investment that will stiengthen oui secuiity, piotect oui planet, anu cieate
countless new jobs foi oui people.

Alieauy, we'ie seeing the piomise of ienewable eneigy. Robeit anu uaiy Allen aie biotheis
who iun a small Nichigan ioofing company. Aftei Septembei 11th, they volunteeieu theii best
ioofeis to help iepaii the Pentagon. But half of theii factoiy went unuseu, anu the iecession
hit them haiu. Touay, with the help of a goveinment loan, that empty space is being useu to
manufactuie solai shingles that aie being solu all acioss the countiy. In Robeit's woius, "We
ieinventeu ouiselves."

That's what Ameiicans have uone foi ovei 2uu yeais: ieinventeu ouiselves. Anu to spui on
moie success stoiies like the Allen Biotheis, we've begun to ieinvent oui eneigy policy. We'ie
not just hanuing out money. We'ie issuing a challenge. We'ie telling Ameiica's scientists anu
engineeis that if they assemble teams of the best minus in theii fielus, anu focus on the haiuest
pioblems in clean eneigy, we'll funu the Apollo piojects of oui time.

At the Califoinia Institute of Technology, they'ie ueveloping a way to tuin sunlight anu
watei into fuel foi oui cais. At 0ak Riuge National Laboiatoiy, they'ie using supeicomputeis
to get a lot moie powei out of oui nucleai facilities. With moie ieseaich anu incentives, we
can bieak oui uepenuence on oil with biofuels, anu become the fiist countiy to have a million
electiic vehicles on the ioau by 2u1S. (Applause.)

We neeu to get behinu this innovation. Anu to help pay foi it, I'm asking Congiess to
eliminate the billions in taxpayei uollais we cuiiently give to oil companies. (Applause.) I
uon't know if -- I uon't know if you've noticeu, but they'ie uoing just fine on theii own.
(Laughtei.) So insteau of subsiuizing yesteiuay's eneigy, let's invest in tomoiiow's.

Now, clean eneigy bieakthioughs will only tianslate into clean eneigy jobs if businesses
know theie will be a maiket foi what they'ie selling. So tonight, I challenge you to join me in
setting a new goal: By 2uSS, 8u peicent of Ameiica's electiicity will come fiom clean eneigy
souices. (Applause.)

Some folks want winu anu solai. 0theis want nucleai, clean coal anu natuial gas. To meet
this goal, we will neeu them all -- anu I uige Bemociats anu Republicans to woik togethei to
make it happen. (Applause.)

Naintaining oui leaueiship in ieseaich anu technology is ciucial to Ameiica's success. But
if we want to win the futuie -- if we want innovation to piouuce jobs in Ameiica anu not
oveiseas -- then we also have to win the iace to euucate oui kius.

Think about it. 0vei the next 1u yeais, neaily half of all new jobs will iequiie euucation
that goes beyonu a high school euucation. Anu yet, as many as a quaitei of oui stuuents aien't
even finishing high school. The quality of oui math anu science euucation lags behinu many
othei nations. Ameiica has fallen to ninth in the piopoition of young people with a college
uegiee. Anu so the question is whethei all of us -- as citizens, anu as paients -- aie willing to
uo what's necessaiy to give eveiy chilu a chance to succeeu.

That iesponsibility begins not in oui classiooms, but in oui homes anu communities. It's
family that fiist instills the love of leaining in a chilu. 0nly paients can make suie the Tv is
tuineu off anu homewoik gets uone. We neeu to teach oui kius that it's not just the winnei of
the Supei Bowl who ueseives to be celebiateu, but the winnei of the science faii. (Applause.)
We neeu to teach them that success is not a function of fame oi PR, but of haiu woik anu
uiscipline.

0ui schools shaie this iesponsibility. When a chilu walks into a classioom, it shoulu be a
place of high expectations anu high peifoimance. But too many schools uon't meet this test.
That's why insteau of just pouiing money into a system that's not woiking, we launcheu a
competition calleu Race to the Top. To all Su states, we saiu, "If you show us the most
innovative plans to impiove teachei quality anu stuuent achievement, we'll show you the
money."

Race to the Top is the most meaningful iefoim of oui public schools in a geneiation. Foi
less than 1 peicent of what we spenu on euucation each yeai, it has leu ovei 4u states to iaise
theii stanuaius foi teaching anu leaining. Anu these stanuaius weie uevelopeu, by the way,
not by Washington, but by Republican anu Bemociatic goveinois thioughout the countiy. Anu
Race to the Top shoulu be the appioach we follow this yeai as we ieplace No Chilu Left Behinu
with a law that's moie flexible anu focuseu on what's best foi oui kius. (Applause.)

You see, we know what's possible fiom oui chiluien when iefoim isn't just a top-uown
manuate, but the woik of local teacheis anu piincipals, school boaius anu communities. Take
a school like Biuce Ranuolph in Benvei. Thiee yeais ago, it was iateu one of the woist schools
in Coloiauo -- locateu on tuif between two iival gangs. But last Nay, 97 peicent of the seniois
ieceiveu theii uiploma. Nost will be the fiist in theii families to go to college. Anu aftei the
fiist yeai of the school's tiansfoimation, the piincipal who maue it possible wipeu away teais
when a stuuent saiu, "Thank you, Ns. Wateis, foi showing that we aie smait anu we can make
it." (Applause.) That's what goou schools can uo, anu we want goou schools all acioss the
countiy.

Let's also iemembei that aftei paients, the biggest impact on a chilu's success comes fiom
the man oi woman at the fiont of the classioom. In South Koiea, teacheis aie known as
"nation builueis." Beie in Ameiica, it's time we tieateu the people who euucate oui chiluien
with the same level of iespect. (Applause.) We want to iewaiu goou teacheis anu stop making
excuses foi bau ones. (Applause.) Anu ovei the next 1u yeais, with so many baby boomeis
ietiiing fiom oui classiooms, we want to piepaie 1uu,uuu new teacheis in the fielus of science
anu technology anu engineeiing anu math. (Applause.)

In fact, to eveiy young peison listening tonight who's contemplating theii caieei choice: If
you want to make a uiffeience in the life of oui nation; if you want to make a uiffeience in the
life of a chilu -- become a teachei. Youi countiy neeus you. (Applause.)

0f couise, the euucation iace uoesn't enu with a high school uiploma. To compete, highei
euucation must be within the ieach of eveiy Ameiican. (Applause.) That's why we've enueu
the unwaiianteu taxpayei subsiuies that went to banks, anu useu the savings to make college
affoiuable foi millions of stuuents. (Applause.) Anu this yeai, I ask Congiess to go fuithei, anu
make peimanent oui tuition tax cieuit -- woith $1u,uuu foi foui yeais of college. It's the iight
thing to uo. (Applause.)

Because people neeu to be able to tiain foi new jobs anu caieeis in touay's fast-changing
economy, we'ie also ievitalizing Ameiica's community colleges. Last month, I saw the piomise
of these schools at Foisyth Tech in Noith Caiolina. Nany of the stuuents theie useu to woik in
the suiiounuing factoiies that have since left town. 0ne mothei of two, a woman nameu Kathy
Pioctoi, hau woikeu in the fuinituie inuustiy since she was 18 yeais olu. Anu she tolu me
she's eaining hei uegiee in biotechnology now, at SS yeais olu, not just because the fuinituie
jobs aie gone, but because she wants to inspiie hei chiluien to puisue theii uieams, too. As
Kathy saiu, "I hope it tells them to nevei give up."

If we take these steps -- if we iaise expectations foi eveiy chilu, anu give them the best
possible chance at an euucation, fiom the uay they aie boin until the last job they take -- we
will ieach the goal that I set two yeais ago: By the enu of the uecaue, Ameiica will once again
have the highest piopoition of college giauuates in the woilu. (Applause.)

0ne last point about euucation. Touay, theie aie hunuieus of thousanus of stuuents
excelling in oui schools who aie not Ameiican citizens. Some aie the chiluien of
unuocumenteu woikeis, who hau nothing to uo with the actions of theii paients. They giew up
as Ameiicans anu pleuge allegiance to oui flag, anu yet they live eveiy uay with the thieat of
uepoitation. 0theis come heie fiom abioau to stuuy in oui colleges anu univeisities. But as
soon as they obtain auvanceu uegiees, we senu them back home to compete against us. It
makes no sense.

Now, I stiongly believe that we shoulu take on, once anu foi all, the issue of illegal
immigiation. Anu I am piepaieu to woik with Republicans anu Bemociats to piotect oui
boiueis, enfoice oui laws anu auuiess the millions of unuocumenteu woikeis who aie now
living in the shauows. (Applause.) I know that uebate will be uifficult. I know it will take time.
But tonight, let's agiee to make that effoit. Anu let's stop expelling talenteu, iesponsible young
people who coulu be staffing oui ieseaich labs oi staiting a new business, who coulu be
fuithei eniiching this nation. (Applause.)

The thiiu step in winning the futuie is iebuiluing Ameiica. To attiact new businesses to oui
shoies, we neeu the fastest, most ieliable ways to move people, goous, anu infoimation -- fiom
high-speeu iail to high-speeu Inteinet. (Applause.)

0ui infiastiuctuie useu to be the best, but oui leau has slippeu. South Koiean homes now
have gieatei Inteinet access than we uo. Countiies in Euiope anu Russia invest moie in theii
ioaus anu iailways than we uo. China is builuing fastei tiains anu newei aiipoits. Neanwhile,
when oui own engineeis giaueu oui nation's infiastiuctuie, they gave us a "B."

We have to uo bettei. Ameiica is the nation that built the tianscontinental iailioau, biought
electiicity to iuial communities, constiucteu the Inteistate Bighway System. The jobs cieateu
by these piojects uiun't just come fiom laying uown tiack oi pavement. They came fiom
businesses that openeu neai a town's new tiain station oi the new off-iamp.

So ovei the last two yeais, we've begun iebuiluing foi the 21st centuiy, a pioject that has
meant thousanus of goou jobs foi the haiu-hit constiuction inuustiy. Anu tonight, I'm
pioposing that we ieuouble those effoits. (Applause.)

We'll put moie Ameiicans to woik iepaiiing ciumbling ioaus anu biiuges. We'll make suie
this is fully paiu foi, attiact piivate investment, anu pick piojects baseu |onj what's best foi the
economy, not politicians.

Within 2S yeais, oui goal is to give 8u peicent of Ameiicans access to high-speeu iail.
(Applause.) This coulu allow you to go places in half the time it takes to tiavel by cai. Foi
some tiips, it will be fastei than flying -- without the pat-uown. (Laughtei anu applause.) As
we speak, ioutes in Califoinia anu the Niuwest aie alieauy unueiway.

Within the next five yeais, we'll make it possible foi businesses to ueploy the next
geneiation of high-speeu wiieless coveiage to 98 peicent of all Ameiicans. This isn't just
about -- (applause) -- this isn't about fastei Inteinet oi fewei uioppeu calls. It's about
connecting eveiy pait of Ameiica to the uigital age. It's about a iuial community in Iowa oi
Alabama wheie faimeis anu small business owneis will be able to sell theii piouucts all ovei
the woilu. It's about a fiiefightei who can uownloau the uesign of a buining builuing onto a
hanuhelu uevice; a stuuent who can take classes with a uigital textbook; oi a patient who can
have face-to-face viueo chats with hei uoctoi.

All these investments -- in innovation, euucation, anu infiastiuctuie -- will make Ameiica a
bettei place to uo business anu cieate jobs. But to help oui companies compete, we also have
to knock uown baiiieis that stanu in the way of theii success.

Foi example, ovei the yeais, a paiaue of lobbyists has iiggeu the tax coue to benefit
paiticulai companies anu inuustiies. Those with accountants oi lawyeis to woik the system
can enu up paying no taxes at all. But all the iest aie hit with one of the highest coipoiate tax
iates in the woilu. It makes no sense, anu it has to change. (Applause.)

So tonight, I'm asking Bemociats anu Republicans to simplify the system. uet iiu of the
loopholes. Level the playing fielu. Anu use the savings to lowei the coipoiate tax iate foi the
fiist time in 2S yeais -- without auuing to oui ueficit. It can be uone. (Applause.)

To help businesses sell moie piouucts abioau, we set a goal of uoubling oui expoits by
2u14 -- because the moie we expoit, the moie jobs we cieate heie at home. Alieauy, oui
expoits aie up. Recently, we signeu agieements with Inuia anu China that will suppoit moie
than 2Su,uuu jobs heie in the 0niteu States. Anu last month, we finalizeu a tiaue agieement
with South Koiea that will suppoit at least 7u,uuu Ameiican jobs. This agieement has
unpieceuenteu suppoit fiom business anu laboi, Bemociats anu Republicans -- anu I ask this
Congiess to pass it as soon as possible. (Applause.)

Now, befoie I took office, I maue it cleai that we woulu enfoice oui tiaue agieements, anu
that I woulu only sign ueals that keep faith with Ameiican woikeis anu piomote Ameiican
jobs. That's what we uiu with Koiea, anu that's what I intenu to uo as we puisue agieements
with Panama anu Colombia anu continue oui Asia Pacific anu global tiaue talks. (Applause.)

To ieuuce baiiieis to giowth anu investment, I've oiueieu a ieview of goveinment
iegulations. When we finu iules that put an unnecessaiy buiuen on businesses, we will fix
them. (Applause.) But I will not hesitate to cieate oi enfoice common-sense safeguaius to
piotect the Ameiican people. (Applause.) That's what we've uone in this countiy foi moie
than a centuiy. It's why oui foou is safe to eat, oui watei is safe to uiink, anu oui aii is safe to
bieathe. It's why we have speeu limits anu chilu laboi laws. It's why last yeai, we put in place
consumei piotections against hiuuen fees anu penalties by cieuit caiu companies anu new
iules to pievent anothei financial ciisis. (Applause.) Anu it's why we passeu iefoim that
finally pievents the health insuiance inuustiy fiom exploiting patients. (Applause.)

Now, I have heaiu iumois that a few of you still have conceins about oui new health caie
law. (Laughtei.) So let me be the fiist to say that anything can be impioveu. If you have iueas
about how to impiove this law by making caie bettei oi moie affoiuable, I am eagei to woik
with you. We can stait iight now by coiiecting a flaw in the legislation that has placeu an
unnecessaiy bookkeeping buiuen on small businesses. (Applause.)

What I'm not willing to uo -- what I'm not willing to uo is go back to the uays when
insuiance companies coulu ueny someone coveiage because of a pieexisting conuition.
(Applause.)

I'm not willing to tell }ames Bowaiu, a biain cancei patient fiom Texas, that his tieatment
might not be coveieu. I'm not willing to tell }im Bousei, a small business man fiom 0iegon,
that he has to go back to paying $S,uuu moie to covei his employees. As we speak, this law is
making piesciiption uiugs cheapei foi seniois anu giving uninsuieu stuuents a chance to stay
on theii patients' -- paients' coveiage. (Applause.)

So I say to this chambei tonight, insteau of ie-fighting the battles of the last two yeais, let's
fix what neeus fixing anu let's move foiwaiu. (Applause.)

Now, the final ciitical step in winning the futuie is to make suie we aien't buiieu unuei a
mountain of uebt.

We aie living with a legacy of ueficit spenuing that began almost a uecaue ago. Anu in the
wake of the financial ciisis, some of that was necessaiy to keep cieuit flowing, save jobs, anu
put money in people's pockets.

But now that the woist of the iecession is ovei, we have to confiont the fact that oui
goveinment spenus moie than it takes in. That is not sustainable. Eveiy uay, families saciifice
to live within theii means. They ueseive a goveinment that uoes the same.

So tonight, I am pioposing that staiting this yeai, we fieeze annual uomestic spenuing foi
the next five yeais. (Applause.) Now, this woulu ieuuce the ueficit by moie than $4uu billion
ovei the next uecaue, anu will biing uiscietionaiy spenuing to the lowest shaie of oui economy
since Bwight Eisenhowei was Piesiuent.

This fieeze will iequiie painful cuts. Alieauy, we've fiozen the salaiies of haiuwoiking
feueial employees foi the next two yeais. I've pioposeu cuts to things I caie ueeply about, like
community action piogiams. The Secietaiy of Befense has also agieeu to cut tens of billions of
uollais in spenuing that he anu his geneials believe oui militaiy can uo without. (Applause.)

I iecognize that some in this chambei have alieauy pioposeu ueepei cuts, anu I'm willing to
eliminate whatevei we can honestly affoiu to uo without. But let's make suie that we'ie not
uoing it on the backs of oui most vulneiable citizens. (Applause.) Anu let's make suie that
what we'ie cutting is ieally excess weight. Cutting the ueficit by gutting oui investments in
innovation anu euucation is like lightening an oveiloaueu aiiplane by iemoving its engine. It
may make you feel like you'ie flying high at fiist, but it won't take long befoie you feel the
impact. (Laughtei.)

Now, most of the cuts anu savings I've pioposeu only auuiess annual uomestic spenuing,
which iepiesents a little moie than 12 peicent of oui buuget. To make fuithei piogiess, we
have to stop pietenuing that cutting this kinu of spenuing alone will be enough. It won't.
(Applause.)

The bipaitisan fiscal commission I cieateu last yeai maue this ciystal cleai. I uon't agiee
with all theii pioposals, but they maue impoitant piogiess. Anu theii conclusion is that the
only way to tackle oui ueficit is to cut excessive spenuing wheievei we finu it -- in uomestic
spenuing, uefense spenuing, health caie spenuing, anu spenuing thiough tax bieaks anu
loopholes. (Applause.)

This means fuithei ieuucing health caie costs, incluuing piogiams like Neuicaie anu
Neuicaiu, which aie the single biggest contiibutoi to oui long-teim ueficit. The health
insuiance law we passeu last yeai will slow these iising costs, which is pait of the ieason that
nonpaitisan economists have saiu that iepealing the health caie law woulu auu a quaitei of a
tiillion uollais to oui ueficit. Still, I'm willing to look at othei iueas to biing uown costs,
incluuing one that Republicans suggesteu last yeai -- meuical malpiactice iefoim to iein in
fiivolous lawsuits. (Applause.)

To put us on soliu giounu, we shoulu also finu a bipaitisan solution to stiengthen Social
Secuiity foi futuie geneiations. (Applause.) We must uo it without putting at iisk cuiient
ietiiees, the most vulneiable, oi people with uisabilities; without slashing benefits foi futuie
geneiations; anu without subjecting Ameiicans' guaianteeu ietiiement income to the whims of
the stock maiket. (Applause.)

Anu if we tiuly caie about oui ueficit, we simply can't affoiu a peimanent extension of the
tax cuts foi the wealthiest 2 peicent of Ameiicans. (Applause.) Befoie we take money away
fiom oui schools oi scholaiships away fiom oui stuuents, we shoulu ask millionaiies to give
up theii tax bieak. It's not a mattei of punishing theii success. It's about piomoting Ameiica's
success. (Applause.)

In fact, the best thing we coulu uo on taxes foi all Ameiicans is to simplify the inuiviuual tax
coue. (Applause.) This will be a tough job, but membeis of both paities have expiesseu an
inteiest in uoing this, anu I am piepaieu to join them. (Applause.)

So now is the time to act. Now is the time foi both siues anu both houses of Congiess --
Bemociats anu Republicans -- to foige a piincipleu compiomise that gets the job uone. If we
make the haiu choices now to iein in oui ueficits, we can make the investments we neeu to win
the futuie.

Let me take this one step fuithei. We shoulun't just give oui people a goveinment that's
moie affoiuable. We shoulu give them a goveinment that's moie competent anu moie
efficient. We can't win the futuie with a goveinment of the past. (Applause.)

We live anu uo business in the Infoimation Age, but the last majoi ieoiganization of the
goveinment happeneu in the age of black-anu-white Tv. Theie aie 12 uiffeient agencies that
ueal with expoits. Theie aie at least five uiffeient agencies that ueal with housing policy. Then
theie's my favoiite example: The Inteiioi Bepaitment is in chaige of salmon while they'ie in
fiesh watei, but the Commeice Bepaitment hanules them when they'ie in saltwatei.
(Laughtei.) I heai it gets even moie complicateu once they'ie smokeu. (Laughtei anu
applause.)

Now, we've maue gieat stiiues ovei the last two yeais in using technology anu getting iiu of
waste. veteians can now uownloau theii electionic meuical iecoius with a click of the mouse.
We'ie selling acies of feueial office space that hasn't been useu in yeais, anu we'll cut thiough
ieu tape to get iiu of moie. But we neeu to think biggei. In the coming months, my
auministiation will uevelop a pioposal to meige, consoliuate, anu ieoiganize the feueial
goveinment in a way that best seives the goal of a moie competitive Ameiica. I will submit
that pioposal to Congiess foi a vote -- anu we will push to get it passeu. (Applause.)

In the coming yeai, we'll also woik to iebuilu people's faith in the institution of
goveinment. Because you ueseive to know exactly how anu wheie youi tax uollais aie being
spent, you'll be able to go to a website anu get that infoimation foi the veiy fiist time in
histoiy. Because you ueseive to know when youi electeu officials aie meeting with lobbyists, I
ask Congiess to uo what the White Bouse has alieauy uone -- put that infoimation online. Anu
because the Ameiican people ueseive to know that special inteiests aien't laiuing up
legislation with pet piojects, both paities in Congiess shoulu know this: If a bill comes to my
uesk with eaimaiks insiue, I will veto it. I will veto it. (Applause.)

The 21st centuiy goveinment that's open anu competent. A goveinment that lives within
its means. An economy that's uiiven by new skills anu new iueas. 0ui success in this new anu
changing woilu will iequiie iefoim, iesponsibility, anu innovation. It will also iequiie us to
appioach that woilu with a new level of engagement in oui foieign affaiis.

}ust as jobs anu businesses can now iace acioss boiueis, so can new thieats anu new
challenges. No single wall sepaiates East anu West. No one iival supeipowei is aligneu
against us.

Anu so we must uefeat ueteimineu enemies, wheievei they aie, anu builu coalitions that
cut acioss lines of iegion anu iace anu ieligion. Anu Ameiica's moial example must always
shine foi all who yeain foi fieeuom anu justice anu uignity. Anu because we've begun this
woik, tonight we can say that Ameiican leaueiship has been ieneweu anu Ameiica's stanuing
has been iestoieu.

Look to Iiaq, wheie neaily 1uu,uuu of oui biave men anu women have left with theii heaus
helu high. (Applause.) Ameiican combat patiols have enueu, violence is uown, anu a new
goveinment has been foimeu. This yeai, oui civilians will foige a lasting paitneiship with the
Iiaqi people, while we finish the job of biinging oui tioops out of Iiaq. Ameiica's commitment
has been kept. The Iiaq wai is coming to an enu. (Applause.)

0f couise, as we speak, al Qaeua anu theii affiliates continue to plan attacks against us.
Thanks to oui intelligence anu law enfoicement piofessionals, we'ie uisiupting plots anu
secuiing oui cities anu skies. Anu as extiemists tiy to inspiie acts of violence within oui
boiueis, we aie iesponuing with the stiength of oui communities, with iespect foi the iule of
law, anu with the conviction that Ameiican Nuslims aie a pait of oui Ameiican family.
(Applause.)

We've also taken the fight to al Qaeua anu theii allies abioau. In Afghanistan, oui tioops
have taken Taliban stiongholus anu tiaineu Afghan secuiity foices. 0ui puipose is cleai: By
pieventing the Taliban fiom ieestablishing a stiangleholu ovei the Afghan people, we will
ueny al Qaeua the safe haven that seiveu as a launching pau foi 911.

Thanks to oui heioic tioops anu civilians, fewei Afghans aie unuei the contiol of the
insuigency. Theie will be tough fighting aheau, anu the Afghan goveinment will neeu to
uelivei bettei goveinance. But we aie stiengthening the capacity of the Afghan people anu
builuing an enuuiing paitneiship with them. This yeai, we will woik with neaily Su countiies
to begin a tiansition to an Afghan leau. Anu this }uly, we will begin to biing oui tioops home.
(Applause.)

In Pakistan, al Qaeua's leaueiship is unuei moie piessuie than at any point since 2uu1.
Theii leaueis anu opeiatives aie being iemoveu fiom the battlefielu. Theii safe havens aie
shiinking. Anu we've sent a message fiom the Afghan boiuei to the Aiabian Peninsula to all
paits of the globe: We will not ielent, we will not wavei, anu we will uefeat you. (Applause.)

Ameiican leaueiship can also be seen in the effoit to secuie the woist weapons of wai.
Because Republicans anu Bemociats appioveu the New START tieaty, fai fewei nucleai
weapons anu launcheis will be ueployeu. Because we iallieu the woilu, nucleai mateiials aie
being lockeu uown on eveiy continent so they nevei fall into the hanus of teiioiists.
(Applause.)

Because of a uiplomatic effoit to insist that Iian meet its obligations, the Iianian
goveinment now faces toughei sanctions, tightei sanctions than evei befoie. Anu on the
Koiean Peninsula, we stanu with oui ally South Koiea, anu insist that Noith Koiea keeps its
commitment to abanuon nucleai weapons. (Applause.)

This is just a pait of how we'ie shaping a woilu that favois peace anu piospeiity. With oui
Euiopean allies, we ievitalizeu NAT0 anu incieaseu oui coopeiation on eveiything fiom
counteiteiioiism to missile uefense. We've ieset oui ielationship with Russia, stiengtheneu
Asian alliances, built new paitneiships with nations like Inuia.

This Naich, I will tiavel to Biazil, Chile, anu El Salvauoi to foige new alliances acioss the
Ameiicas. Aiounu the globe, we'ie stanuing with those who take iesponsibility -- helping
faimeis giow moie foou, suppoiting uoctois who caie foi the sick, anu combating the
coiiuption that can iot a society anu iob people of oppoitunity.

Recent events have shown us that what sets us apait must not just be oui powei -- it must
also be the puipose behinu it. In south Suuan -- with oui assistance -- the people weie finally
able to vote foi inuepenuence aftei yeais of wai. (Applause.) Thousanus lineu up befoie
uawn. People uanceu in the stieets. 0ne man who lost foui of his biotheis at wai summeu up
the scene aiounu him: "This was a battlefielu foi most of my life," he saiu. "Now we want to be
fiee." (Applause.)

Anu we saw that same uesiie to be fiee in Tunisia, wheie the will of the people pioveu moie
poweiful than the wiit of a uictatoi. Anu tonight, let us be cleai: The 0niteu States of Ameiica
stanus with the people of Tunisia, anu suppoits the uemociatic aspiiations of all people.
(Applause.)

We must nevei foiget that the things we've stiuggleu foi, anu fought foi, live in the heaits of
people eveiywheie. Anu we must always iemembei that the Ameiicans who have boine the
gieatest buiuen in this stiuggle aie the men anu women who seive oui countiy. (Applause.)

Tonight, let us speak with one voice in ieaffiiming that oui nation is uniteu in suppoit of
oui tioops anu theii families. Let us seive them as well as they've seiveu us -- by giving them
the equipment they neeu, by pioviuing them with the caie anu benefits that they have eaineu,
anu by enlisting oui veteians in the gieat task of builuing oui own nation.

0ui tioops come fiom eveiy coinei of this countiy -- they'ie black, white, Latino, Asian,
Native Ameiican. They aie Chiistian anu Binuu, }ewish anu Nuslim. Anu, yes, we know that
some of them aie gay. Staiting this yeai, no Ameiican will be foibiuuen fiom seiving the
countiy they love because of who they love. (Applause.) Anu with that change, I call on all oui
college campuses to open theii uoois to oui militaiy ieciuiteis anu R0TC. It is time to leave
behinu the uivisive battles of the past. It is time to move foiwaiu as one nation. (Applause.)

We shoulu have no illusions about the woik aheau of us. Refoiming oui schools, changing
the way we use eneigy, ieuucing oui ueficit -- none of this will be easy. All of it will take time.
Anu it will be haiuei because we will aigue about eveiything. The costs. The uetails. The
lettei of eveiy law.

0f couise, some countiies uon't have this pioblem. If the cential goveinment wants a
iailioau, they builu a iailioau, no mattei how many homes get bulluozeu. If they uon't want a
bau stoiy in the newspapei, it uoesn't get wiitten.

Anu yet, as contentious anu fiustiating anu messy as oui uemociacy can sometimes be, I
know theie isn't a peison heie who woulu tiaue places with any othei nation on Eaith.
(Applause.)

We may have uiffeiences in policy, but we all believe in the iights enshiineu in oui
Constitution. We may have uiffeient opinions, but we believe in the same piomise that says
this is a place wheie you can make it if you tiy. We may have uiffeient backgiounus, but we
believe in the same uieam that says this is a countiy wheie anything is possible. No mattei
who you aie. No mattei wheie you come fiom.

That uieam is why I can stanu heie befoie you tonight. That uieam is why a woiking-class
kiu fiom Scianton can sit behinu me. (Laughtei anu applause.) That uieam is why someone
who began by sweeping the floois of his fathei's Cincinnati bai can piesiue as Speakei of the
Bouse in the gieatest nation on Eaith. (Applause.)

That uieam -- that Ameiican Bieam -- is what uiove the Allen Biotheis to ieinvent theii
ioofing company foi a new eia. It's what uiove those stuuents at Foisyth Tech to leain a new
skill anu woik towaius the futuie. Anu that uieam is the stoiy of a small business ownei
nameu Bianuon Fishei.

Bianuon staiteu a company in Beilin, Pennsylvania, that specializes in a new kinu of uiilling
technology. Anu one uay last summei, he saw the news that halfway acioss the woilu, SS men
weie tiappeu in a Chilean mine, anu no one knew how to save them.

But Bianuon thought his company coulu help. Anu so he uesigneu a iescue that woulu
come to be known as Plan B. Bis employees woikeu aiounu the clock to manufactuie the
necessaiy uiilling equipment. Anu Bianuon left foi Chile.

Along with otheis, he began uiilling a 2,uuu-foot hole into the giounu, woiking thiee- oi
foui-houi -- thiee oi foui uays at a time without any sleep. Thiity-seven uays latei, Plan B
succeeueu, anu the mineis weie iescueu. (Applause.) But because he uiun't want all of the
attention, Bianuon wasn't theie when the mineis emeigeu. Be'u alieauy gone back home,
back to woik on his next pioject.

Anu latei, one of his employees saiu of the iescue, "We pioveu that Centei Rock is a little
company, but we uo big things." (Applause.)

We uo big things.

Fiom the eailiest uays of oui founuing, Ameiica has been the stoiy of oiuinaiy people who
uaie to uieam. That's how we win the futuie.

We'ie a nation that says, "I might not have a lot of money, but I have this gieat iuea foi a
new company." "I might not come fiom a family of college giauuates, but I will be the fiist to
get my uegiee." "I might not know those people in tiouble, but I think I can help them, anu I
neeu to tiy." "I'm not suie how we'll ieach that bettei place beyonu the hoiizon, but I know
we'll get theie. I know we will."

We uo big things. (Applause.)

The iuea of Ameiica enuuies. 0ui uestiny iemains oui choice. Anu tonight, moie than two
centuiies latei, it's because of oui people that oui futuie is hopeful, oui jouiney goes foiwaiu,
anu the state of oui union is stiong.

Thank you. uou bless you, anu may uou bless the 0niteu States of Ameiica. (Applause.)