Reset, before congress and the nation. The president makes his case. This is going to be a year of action. Live, from the United States capitol, the state of the union address, and the republican response. Now, reporting from washington, diane sawyer and george stephanopoulos. And a good evening. And welcome to all of you, as we gather together on this cold night for a lot of the country, for the state of the union 2014. And in just moments, president barack obama is going to walk into the Congressional Chamber and try to capture the imagination of the American People once again. For this next chapter, george, the last three years of his presidency, its not going to be easy. Not at all because hes coming off the worst year of the his presidency, diane. The president has never given one of these speeches as weak politically as he is today. Congress deadset against his agenda. And those who support his policies arent sure he can get things done. The president s number one job, tonight, convince them he can. We want to go into the room tonight. We want to go in the chamber. Show you some of the things thats happening. We think the first ladys arriving. Here, the cabinet coming in. And Jonathan Karl is right there, inside that room. Jon, tell us what youre seeing and what youve been hearing so far. Reporter the first lady came in just a few about a minute and a half ago. And what youre seeing here is the president , more than anything, wanting to tell the people in this room and the rest of the country, that he can turn the page on that horrible last year, the worst year of his presidency. You know, diane, when we were here a year ago, the president asked for a series of things from congress, ranging from raising the minimum wage to passing gun control. He got none of it. Now, the overwhelming message tonight is he can act even if congress doesnt. Look for him to talk about what he can do using the power of the presidency, even if he cant get major bills passed through the congress. You see the cabinet coming right there. Secretary of state john kerry. A year of action for him it has been. Traveled all around the world on all of the major hot spots. Jack lew, the treasury secretary. And chuck hagel, behind secretary lew right there. Were going to replay the tape right now, just minutes ago, First Lady Michelle Obama arrived. And well watch her come in, as well. She, too, has been there for five official six of these speeches to come. And coming off some great celebrations. Celebrated her 50th birthday a couple of weeks back. A week at hawaii. A great party at the white house. Celebrations with friends, as well. We have our team of contributors in the studio with us, tonight. We see the president s omb director and trade director, michael froman. And i want to start with david plouffe, the Senior Adviser to the president. Had a chance to look at the speech, at least early drafts of the speech. And one of the puzzles the president has to solve tonight, the economy, doing about as well as hes ever done has he comes in the chamber. But most people dont believe it and dont give him credit for it. We spent the first four years overperforming the economy. Thats a challenge. Economy, economy. The last year was Health Care Problems and syria and iran. Thats the challenge tonight. It cant be the prescriptions. He has to show people he has the right prescriptions. But theres a lot of cynicism. He has to show that hell take action. But he will work with congress to get stuff done. Its not just the right answers. But people are frustrated with washington. He has to convince people there is hope and a sense of possibilities. What about matt dowd, our political adviser, both sides of the aisle. Do people just watch this to find out how much vital energy he has . How much confidence he has . Im struck by that. And this is the incredible shrinking presidency. If you reflect on where it started five years ago, im reminded of pete seeger, the folk singer that just passed away. His song, theres a season for everything. And weve gone from a time to dance, to many people, a time to mourn. Thats the arc of energy in this presidency. To what people are talking about hes proposing, and the big stuff he did before, its a much diminished presidency. Turn, turn, turn, as the song continues. Should we go back in the room and watch the Supreme Court arrive, george, because we were struck that theres five justices there tonight. Four of them supported the president on obamacare. Thats kathleen sebelius, the secretary of health and human services. Embattled secretary of health and human services, after the last year. Also see his Housing Development secretary right there, as well. Do we have the tape of the Supreme Court justices coming in . Im afraid we dont have it right now. Want to bring in bill crystal right here. Talk about the political position the president is in right now. Yet, as bad as hes doing right now, the ratings of republicans in congress, even worse. Right. And president obama is still the president. I get nervous. I dont wish his legislative agenda well. But i get nervous when everyone is saying, hes so weak. Hes going downhill. He has no chance to get anything done. Hes the president. The Democratic Party controls the senate. Theyve been willing to play hardball to get legislation through, with obamacare and other such things. If he pushes hard on some of the economic populous issues, im not for the bill, but i can see him having a victory on immigration if the house and republicans play ball with him. Hes putting pressure on them. And he shouldnt be counted out. He seems convinced thats his best chance of getting big legislation pushed through this year. Donna brazile, our abc news political contributor, and former Campaign Manager for al gore. Bill kristol mentioned the majority. This is an Election Year for the house and the senate. And a lot of democrats worry that the president s weak political standing is going to bring them down in november. The thing democrats are now focused on, are the president s numbers are improving. Theyre not where they used to be. But not as bad as they were a couple months ago. Democrats are hoping that the president can lay out a positive agenda they can run on, raising the minimum wage, closing the income inequality gap. And bread and butter issues they can show the American People and show they made a difference this year. And we have that tape of the Supreme Court coming in. We like to see their faces as they arrive. In years past, theres been a lot of ambivalence on the part of Supreme Court justices, whether they should be there, part of the ceremony, whether they should applaud. Its all an artform. I want to go back to Jonathan Karl who is there. Jon, whatever we say, you and i were in that chamber this morning, about 9 30 in the morning. And members of congress were already there, getting their positions on the aisle, so they could reach out to the president when he comes in. Reporter its just incredible. And you see the same group that is there year after year, to get that five or ten seconds when theyre in the frame with the president coming in. Get that handshake. The other dynamic, here, diane, is i see marco rubio on the floor. Potentially the republican leading republican candidate for president , sitting there, flanked by democrats on the floor. Hes sitting between Kirsten Gillibrand of new york and cory booker of new jersey, there on the republican side. A few years ago, they started this process of democrats sitting with the republicans and republicans sitting with democrats. For the most part, that is over now. This chamber is divided. The republicans are on their side. The democrats are on their side. But somehow rubio founds himself surrounded by democrats. Its not just the first lady bringing guests into the chamber tonight. I think we have the pictures of this, as well. Willie robertson of duck dynasty is going to be there tonight, as well. And bill kristol. He has a reason to be there. Hes the guest of that congressman from louisiana. A wellknown fellow. I refer to donna on all duck dynasty matters. He played an Important Role in electing this congressman, after the previous congressman resigned. And now, is the secretary of in louisiana, the secretary of veteran affairs. Its been interesting to watch members of congress sidling over, selfies, some of them, with him tonight. So, as were looking at this scene in the room, as were looking at the faces of Vice President biden. There he is. Speaker of the house, john boehner. Whats the secret architecture behind the scenes . What should we study when were watching john boehner watch this president tonight, matt . The president of the United States. [ applause ] here he comes. The sergeant at arms, announcing the president entering the room. David plouffe, is this routine for the president at this point . He enjoys this. When youre on you only have a few of these left. I think he will soak it in. President s have said, no matter how often youve done it, when you hear that name announced and it is yours, and you realize where your life has brought you, as Ronald Reagan said, its goosebumps and quiver. Diane, going to what you were asking. Everybody tries to read facial expressions. Read where somebody sits, whether somebody stands, claps. But the impact of the speeches on their own dont have much on their own impact. You have to really add and follow, the days after the aftermath. Does he annunciate something . And how does he follow through it . He enunciates he wants to push immigration. Its not the mannerisms here, its what comes in the days after. Today, he has to seize the agenda of the economy and reset that. After tonight, you have to keep that going. In the coming weeks are consumed by issues, this is an exception. And that is, i think, the most important thing he has to do. And i would make a point talking about the republicans. Both parties are on probation right now. The whole citys on probation. And my sense is it will take members of both parties to find areas to cooperate as they head to the ballot box. Do you think the republicans are feeling that pressure . The pressure to cooperate with the president and actually get something done . Or hold off until the election and hope it brings them a majority . I think theyre feeling pressure not to shut down the government again or threaten default. I think they will not recapitulate like they did in october. I dont think they have pressure to cooperate. You talk to republican candidates and challenges in some of the senate races, they feel pretty good hand now. Theyd like to play. And they dont have to have deals with the president. Theyre not going to have a government shutdown. Theyve been appropriated through the fiscal year. Theyre happy to litigate obamacare and the other issues out there. Donna brazile, we watch, as the new yorker interview, of the president talking about a relay swimmer in the river with the rapids all around him. Youve seen him recently. How is he different this time than he was previous times . I think the president this vacation period was really good for the president. I think hes much more focused on the work ahead. He knows he has 1,087 days left in office. Theres a lot on his plate. Hes anxious to get things done with congress. The farm bill, immigration, raising the minimum wage. He knows he can work with governors, mayors and College President s to really move the agenda forward. David plouffe, it does seem that the president is energized when he talks about what a lot of people would call smallball. Where they use executive orders. Hes going to announce them tonight. Minimum wage, increase for federal workers. His convening power to bring people together and get them to get things done. My sense is it will be received well by the American People. Theyre frustrated by the gridlock. We ought to raise the minimum wage nationally. But i think actions are really important. People are frustrated about inaction, at the time they dont think the economy is improving as quickly as it needs to. Lets take a moment, now, as the president shakes hands and gets ready for the state of the union 2014. [ applause ] thank you. Members of congress, i have the high privilege and distinct honor of presenting to you, the president of the United States. [ applause ] thank you. Thank you. Thank you. Thank you. Thank you so much. Thank you. That might be one of the few times tonight that everybody gets up. Well see how long it stays as he goes on. Thank you so much. Mr. Speaker, mr. Vice president , members of congress, my fellow americans, today in america, a teacher spent extra time with a student who needed it and did her part to lift americas Graduation Rate to its highest levels in more than three decades. An entrepreneur flipped on the lights in her tech startup and did her part to add to the more than 8 million new jobs our businesses have created over the past four years. [ applause ] an auto worker finetunes some of the best, most fuelefficient cars in the world and did his part to help america wean itself off foreign oil. A farmer prepared for the spring after the strongest fiveyear stretch of farm exports in our history. A rural doctor gave a young child the first prescription to treat asthma that his mother could afford. [ applause ] a man took the bus home from the graveyard shift, bonetired, but dreaming big dreams for his son. And in tightknit communities all across america, fathers and mothers will tuck in their kids, put an arm around their spouse, remember fallen comrades and give thanks for being home from a war that after 12, long years, is finally coming to an end. [ applause ] tonight, this chamber speaks with one voice to the people we represent. It is you, our citizens, who make the state of our union strong. [ applause ] and here are the results of your efforts. The lowest Unemployment Rate in over five years. A rebounding housing market. A Manufacturing Sector thats adding jobs for the First Time Since the 1990s. More oil produced more oil produced at home than we buy from the rest of the world. The first time thats happened in nearly 20 years. [ applause ] our deficits, cut by more than half. And for the first time for the first time in over a decade, Business Leaders around the world have declared that china is no longer the worlds number one place to invest. America is. [ applause ] thats why i believe this can be a breakthrough year for america. After five years of grit and determined effort, the United States is better positioned for the 21st century than any other nation on earth. The question for everyone in this chamber, running through every decision we make this year, is whether we are going to help or hinder this progress. For several years, now, this town has been consumed by a rancorous argument over the proper size of the federal government. Its an important debate. One that dates back to our very founding. But when that debate prevents us from carrying out even the most basic functions of our democracy, when our differences shut down government, or threaten the full faith and credit of the United States, then we are not doing right by the American People. [ applause ] now, as president , im committed to making washington work better. And rebuilding the trust of the people who sent us here. And i believe most of you are, too. Last month, thanks to the work of democrats and republicans, Congress Finally produced a budget that undoes some of last years severe cuts to priorities like education. Nobody got everything they wanted. And we can still do more to invest in this countrys future, while bringing down our deficit in a balanced way. But the budget compromise should leave us freer to focus on creating new jobs, not creating new crises. And in the coming months [ applause ] in the coming months, lets see where else we can make progress together. Lets make this a year of action. Thats what most americans want, for all of us in this chamber, to focus on their lives, their hopes, their aspirations. And what i believe unites the people of this nation, regardless of race or region or party, young or old, rich or poor, is the simple, profound belief in opportunity for all. The notion that if you work hard and take responsibility, you can get ahead in america. [ applause ] lets face it. That belief has suffered some serious blows. For more than three decades, even before the Great Recession hit, massive shifts in technology and global competition had eliminated a lot of good middleclassed jobs and weakened the foundation that families depend on. Today, after four years of economic growth, corporate profits and stock prices have rarely been higher. And those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is, that even in the midst of recovery, too Many Americans are working more than ever, just to get by, let alone to get ahead. And too many still arent working at all. So, our job is to reverse these trends. It wont happen right away and we wont agree on everything. But what i offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middleclass and build new ladders of opportunity into the middleclass. Some require congressional action. And im eager to work with all of you. But america does not stand still and neither will i. So, wherever and whenever i can take steps without legislation to expand opportunity for more american families, thats what im going to do. [ applause ] as usual, our first lady sets a good example. Michelles [ applause ] yeah. [ applause ] michelles lets move partnership with schools, businesses, local leaders, has helped bring down Childhood Obesity rates for the first time in 30 years. And thats an achievement that will improve lives and Lower Health Care costs for decades to come. The alliance that michelle and jill biden has formed, can provide benefits for veterans and military spouses. Taking a page from that pay, 150 businesses and universities, nonprofits have made concrete commitments to reduce inequality and access to Higher Education. And to help every hardworking kid go to college and succeed when they get to campus. And across the country, were partnering with mayors, governors, and state legislatures on issues from homelessness to marriage equality. The point is, there are millions of americans outside of washington who are tired of stale, political arguments and are moving this country forward. They believe. And i believe that here in america our success should depend not on accident of birth, but the strength of our work ethic and the scope of our dreams. Thats what drew our forbearers here. Thats how the daughter of a factory worker is ceo of americas largest automaker. [ applause ] how the son of a bar keep is speaker of the house. [ applause ] how the son of a single mom can be president of the greatest nation on earth. [ applause ] you know [ applause ] opportunity is who we are. And the defining project of our generation must be to restore that promise. We know where to start. The best measure of opportunity is access to a good job. With the economy picking up speed, Companies Say they intend to hire more people this year. And over half of big manufacturers say theyre thinking of insourcing jobs from abroad. [ applause ] so, lets make that decision easier for more companies. Both democrats and republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here and reward companies that keep profits abroad. Lets flip that equation. Lets Work Together to close those loopholes and those incentives to ship jobs overseas and lower tax rates for businesses that create jobs right here at home. [ applause ] moreover, we can take the money we save from this transition to tax reform, to create jobs rebuilding our roads, operating our ports, unclogging our commutes because in todays Global Economy, firstclass jobs gravitate to firstclass infrastructure. We need congress to protect more than 3 million jobs by finishing transportation and waterways bills this summer. That can happen. [ applause ] but ill act on my own to slash bureaucracy and streamline the permitting process for key projects so we can get more construction workers on the job as fast as possible. [ applause ] we also have a chance, right now, to beat other countries in the race for the next wave of hightech manufacturing jobs. My administrations launched two hubs for hightech manufacturing in raleigh, north carolina, and youngstown, ohio, where weve connected businesses to Research Universities that can help america lead the world in advanced technologies. Tonight, im announcing well launch six more this year. Bipartisan bills in both houses could double the number of these hubs and the jobs they create. So, get those bills to my desk. Put more americans back to work. [ applause ] lets do more to help the entrepreneurs and Small Business owners who create most new jobs in america. Over the past five years, my administration has made more loans to Small Business owners than any other. And when 98 of our exporters are Small Businesses, new trade partnerships with europe and the asiapacific, will help them create even more jobs. We need to Work Together, on tools like bipartisan trade promotion authority, to protect our workers, protect our environment, and open new markets to new goods, stamped made in the usa. [ applause ] listen, china and europe arent standing on the sidelines. And neither should we. We know that the nation that goes allin on innovation today will own the Global Economy tomorrow. This is an edge america cannot surrender. Federally funded Research Help lead to the ideas and inventions behind google and smartphones. And thats why congress should undo the damage done by last years cuts to basic research. So, we can unleash the next Great American discovery. [ applause ] there are entire industries to be built, based on vaccines that stay ahead of drugresistant bacteria. Or paperthin material thats stronger than steel. And lets pass a patten reform bill, not costly and needless litigation. Now, one of the biggest factors in bringing more jobs back, is our commitment to american energy. The all the above Energy Strategy i announced a few years ago is working. And today, america is closer to Energy Independence than we have been in decades. [ applause ] one of the reasons why is natural gas. If extracted safely, its the bridge fuel that can power our economy with less of the Carbon Pollution that causes climate change. Businesses plan to invest almost 100 billion in new factories that use natural gas. Ill cut red tape to help states get those factories built and put folks to work. And this congress could help by putting people to work building fueling stations that fuel cars and trucks from foreign oil to american natural gas. [ applause ] meanwhile, my administration will keep working with the industry to sustain production and jobs growth while strengthening protection of our air, our water, our communities. And while were at it, ill use my authority to protect more of our pristine federal lands for future generations. [ applause ] its not just oil and natural Gas Production thats booming. Were becoming a Global Leader in solar, too. Every four minutes, another American Home or business goes solar. Every panel pounded into place by a worker, whose job cannot be outsourced. Lets continue that progress with a smarter tax policy that stops giving 4 billion a year to fossil fuel industries that dont need it so we can invest more in fuels of the future that do. [ applause ] and even as weve increased energy production, we partnered with businesses, builders, and local communities to reduce the energy we consume. When we rescued our automakers, for example, we worked with them to set higher fuelefficiency standards for our cars. In the coming months, ill build on that success by setting new standards for our trucks, so we can keep driving down oil imports and what we pay at the pump. And taken together, our Energy Policy is creating jobs and leading to a clean, safer planet. Over the past eight years, the United States has reduced our total Carbon Pollution more than any other nation on earth. [ applause ] but we have to act with more urgency because the changing climate is already harming western communities struggling with drought and coastal cities dealing with floods. Thats why i directed my administration to work with states, utilities and others to set new standards on the amount of Carbon Pollution our power plants are allowed to dump into the air. The shift the shift to a cleaner Energy Economy wont happen overnight. And it will require some tough choices along the way. But the debate is settled. Climate change is a fact. And when our childrens children look us in the eye and ask if we did all we could to leave them a safer, more stable world, with new sources of energy, i want us to be able to say, yes, we did. [ applause ] finally, if were serious about economic growth, it is time to heed the call of Business Leaders, labor leaders, faith leaders, law enforcement, and fix our broken immigration system. [ applause ] republicans and democrats in the senate have acted. And i know that members of both parties in the house want to do the same. Independent economists say Immigration Reform will grow our economy and shrink our deficits by almost 1 trillion in the next two decades. And for good reason. When people come here to fulfill their dreams, to study and invent, contribute to our culture, they make our country a more attractive place for businesses to locate and give jobs to everybody. So, lets get Immigration Reform done this year. [ applause ] lets get it done. Its time. The ideas ive outlined so far can speed up growth and create more jobs. But in this rapidly changing economy, we have to make sure that every american has the skills to fill those jobs. The good news is, we know how to do it. Two years ago, as the Auto Industry came roaring back, andra rush opened up a Manufacturing Firm in detroit. She knew that ford needed parts for the bestselling truck in america. And she knew how to make those parts. She just needed the workforce. So, she dialed up what we call an american job center, places where folks can walk in to get the help or training they need to find a new job or a better job. She was flooded with new workers. And today, Detroit Manufacturing Systems has more than 700 employees. What andra and her employees experienced is how it should be for every employer and every jobseeker. Tonight, ive asked Vice President biden to lead an acrosstheboard reform of americas Training Programs to make sure they have one Mission Train americans with the skill employers need and match them to good jobs that need to be filled right now. [ applause ] that means more onthejob training and more apprenticeships that send a worker on an upward trajectory for life. It means connecting companies to Community Colleges that can help Design Training to fill their specific needs. And if Congress Wants to help, you can concentrate funding on proven programs that connect more readytowork americans, with ready to be filled jobs. Im also convinced we can help americans return to the workforce faster by reforming Unemployment Insurance so that its more effective in todays economy. But first, this Congress Needs to restore the Unemployment Insurance you just let expire for 1. 6 million people. [ applause ] let me tell you why. Misty demars is a mother of two, young boys. She had been steadily employed since she was a teenager. Put herself through college. She never collected unemployment benefits. But she paid taxes. In may, she and her husband used their life savings to buy their first home. A week later, budget cuts claimed the job she loved. Last month, when their Unemployment Insurance was cut off, she sat down and wrote me a letter. The kind i get every day. We are the face of the unemployment crisis, she wrote. Im not dependent on the government. Our country depends on people like us, who build careers, contribute to society, care about our neighbors. Im confident that in time, i will find a job, i will pay my taxes and we will raise our children in their own home in the community we love. Please, give us this chance. Congress, give these hardworking, responsible americans that chance. [ applause ] give them that chance. Give them the chance. [ applause ] may need our help right now. But more important, this country needs them in the game. Thats why ive been asking ceos to give more longterm unemployed workers a fair shot at new jobs, a new chance to support their families. And in fact, this week, many will come to the white house to make that commitment real. Tonight, i ask every Business Leader in america, to join us and do the same because we are stronger when america fields a full team. [ applause ] of course, its not enough to train todays workforce. We also have to prepare tomorrows workforce. By guaranteeing every child access to a worldclass education. [ applause ] as Steven Rodriguez couldnt speak a word of english when he moved to new york city at age 9. But last month, thanks to the support of Great Teachers and an innovative tutoring program, he led a march of his classmates, through a crowd of cheering parents and neighbors, from their high school to the post office where they mailed off their college applications. And this son of a factory worker just found out hes going to college this fall. [ applause ] five years ago, we set out to change the odds for all our kids. We worked with lenders to reform student loans. And today, more young people are earning College Degrees than ever before. Race to the top, with the help of governors from both parties, has helped states raise expectations and performance. Teachers and principals in schools from tennessee to washington, d. C. , are making big strides in preparing students with the skills for the new economy. Problemsolving, critical thinking, science, technology, engineering, math. Some of this change is hard. It requires everything from more challenging curriculums and more demanding parents to better support for teachers and new ways to measure how well our kids think, not how well they can fill in a bubble on a test. But it is worth it. And it is working. The problem is, were still not reaching enough kids. And were not reaching them in time. And that has to change. Research shows that one of the best investments we can make in a childs life is highquality early education. [ applause ] last year, i asked this congress to help states make highquality prek available to every 4yearold. And as a parent, as well as a president , i repeat that request tonight. But in the meantime, 30 states have raised prek funding on their own. They know we cant wait. Just as we worked with states to reform our schools, this year, well invest in new partnerships with states and communities across the country in a race to the top for our youngest children. And as congress decides what its going to do, im going to pull together a coalition of elected officials, Business Leaders and philanthropists, willing to help more kids access the highquality prek that they need. It is right for america. We need to get this done. [ applause ] last year, i also pledged to connect 99 of our students to highspeed broadband over the next four years. Tonight, i can announce that with the support of the fcc and Companies Like apple, microsoft, sprint and verizon, weve got a down payment to Start Connecting more than 15,000 schools and 20 Million Students over the next 2 year, without adding a dime to the deficit. [ applause ] were working to redesign high schools and partner them with colleges and employers that offer the realworld education and handson training that can lead directly to a job and career. Were shaking up our system of Higher Education to give parents more information and colleges more incentive to offer better value, so that no middleclass kid is priced out of a college education. Were offering millions the opportunity to cap their monthly student loan payments to 10 of their income. And i want to work with congress to see how we can help even more americans who feel trapped by student loan debt. [ applause ] and im reaching out to some of americas leading foundations and corporations on a new initiative to help more young men of color facing especially tough odds to stay on track and reach their full potential. The bottom line is, michelle and i want every child to have the same chance this country gave us. But we know our opportunity agenda wont be complete. And too many young people entering the workforce today will see the American Dream as an empty promise unless we also do more to make sure our economy honors the dignity of work. And hard work pays off for every, single american. Today, women make up about half our workforce. But they still make 77 cents for every dollar a man earns. That is wrong. And in 2014, its an embarrassment. Women deserve equal pay for equal work. [ applause ] [ applause ] she deserves to have a baby without sacrificing her job. A mother deserves a day off to care for a sick child or a sick parent, without running into hardship. And you know what . A father does, too. It is time to do away with workplace policies that belong in a mad men episode. This year, lets come together. Congress, the white house, businesses from wall street to main street, to give every woman the opportunity she deserves because i believe when women succeed, america succeeds. [ applause ] now, women hold a majority of lowerwage jobs. But theyre not the only ones stifled by stagnant wages. Americans understand that some people will earn more money than others. And we dont resent those who, by virtue of their efforts, achieve incredible success. Thats what americas all about. But americans overwhelmingly agree that no one who works fulltime should ever have to raise a family in poverty. [ applause ] [ applause ] in the year since i asked this congress to raise the minimum wage, five states have passed laws to raise theirs. Many businesses have done it on their own. Nick shute is here with his boss, john. John is the owner of punch pizza, in minneapolis. And nick helps make the dough. Only now, he makes more of it. John gave his employees a raise to 10 bucks an hour. And thats a decision thats eased their Financial Stress and boosted their morale. Tonight, i ask more of americas Business Leaders to follow johns lead. Do what you can to raise your employees wages. [ applause ] its good for the economy. Its good for america. To every mayor, governor, state legislator in america, i say, you dont have to wait for congress to act. Americans will support you, if you take this on. And as a chief executive, i intend to lead by example. Profitable corporations like costco, see higher wages as the smart way to boost productivity and reduce turnover. We should, too. In the coming weeks, i will issue an executive order requiring federal contractors to pay their federallyfunded employees a fair wage of at least 10. 10 an hour because if you cook our troops meals or wash their dishes, you should not have to live in poverty. [ applause ] of course, to reach millions more, congress does need to get onboard. Today, the federal minimum wage is worth about 20 less than it was when Ronald Reagan first stood here. Tom harkin and George Miller have a bill to fix that by lifting the minimum wage to 10. 10. Its easy to remember. 10. 10. This will help families. It will give businesses customers more money to spend. It does not involve any new bureaucratic program. So, join the rest of the country. Say yes. Give america a raise. [ applause ] give them a raise. There are other steps we can take to help families make ends meet. And few are more effective at reducing inequal if i and help families pull themselves up through hard work than the earned income tax credit. Right now, it helps about half of all parents at some point. Think about that. It helps about half of all parents in america at some point in their lives. But i agree with republicans like senator rubio, that it doesnt do enough for single workers who dont have kids. So, lets Work Together to strengthen the credit. Reward work. Help more americans get ahead. Lets do more to help americans save for retirement. Today, most workers dont have a pension. A Social Security check often isnt enough on its own. And while the stock market has doubled over the last five years, that doesnt help folks who dont have 401 k s. Thats why tomorrow, i will direct the treasury to create a new way for working americans to start their own retirement savings. My its a new savings bond that encourages folks to build a nest egg. Myr. A. , guarantees a decent return with no risk of losing what you put in. And if this Congress Wants to help, work with me. To fix an upsidedown tax code that gives big tax breaks to help the wealthy save, but does little or nothing to help middleclass americans. Offer every american access to an automatic i. R. A. On the job, so they can save at work, just like everybody in this chamber can. And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again and keeps the dream of homeownership alive for future generations. [ applause ] one last point on financial security. For decades, few things exposed hardworking families to Economic Hardship more than a broken health care system. And in case you havent heard, were in the process of fixing that. [ applause ] now, a preexisting condition used to mean that someone like amanda shelly, a physicians assistant and single mom from arizona, couldnt get Health Insurance. But on january 1st, she got covered. [ applause ] on january 3rd, she felt a sharp pain. On january 6th, she had emergency surgery. Just one week earlier, amanda said, that surgery would have meant bankruptcy. Thats what Health Insurance reform is all about. The peace of mind that if misfortune strikes, you dont have to lose everything. Already because of the Affordable Care act, more than 3 million americans under age 26 have gained coverage under their parents plan. [ applause ] more than 9 million americans have signed up for private Health Insurance or medicaid coverage. [ applause ] 9 million. And heres another number. Zero. Because of this law, no american, none, zero, could ever again be dropped or denied coverage for a preexisting condition like asthma, or back pain, or cancer. [ applause ] no woman can ever be charged more just because shes a woman. [ applause ] and we did all this while adding years to medicares finances, keeping medicare premiums flat, and lowering prescription costs for millions of seniors. Now, i do not expect to convince my republican friends on the merits of this law. But i know that the American People are not interested in refighting old battles. So, again, if you have specific plans to cut costs, cover more people, increase choice, tell america what you do differently. Lets see if the numbers add up. But lets not have another 40something votes to repeal a law thats already helping millions of americans, like amanda. [ applause ] [ applause ] the first 40 were plenty. We all owe it to the American People to say what were for. Not just what were against. And if you want to know the real impact this laws having, just talk to Governor Steve Beshear of kentucky, who is here tonight. Kentucky is not the most liberal part of the country. Thats not where i got my highest vote totals. But hes like a man possessed when it comes to covering his commonwealths families. Theyre our neighbors and our friends, he said. Theyre people we shop and go to church with. Farmers out on the tractor. Grocery clerks. Theyre people who go to work every morning, praying they dont get sick. No one deserves to live that way. Steves right. Thats why, tonight, i ask every american who knows someone without Health Insurance to help them get covered by march 31st. [ applause ] help them get covered. Moms, get on your kids to sign up. Kids, call your mom and walk her through the application. It will give her some peace of mind. Plus, shell appreciate hearing from you. [ laughter ] after all that, thats the spirit thats always moved this nation forward. Its the spirit of citizenship. The recognition that through hard work and responsibility, we can pursue our individual dreams but still come together as one american family, to make sure the next generation can pursue its dreams, as well. Citizenship means standing up for everyones right to vote. [ applause ] last year, part of the Voting Rights act was weakened. But conservative republicans and liberal democrats are working together to strengthen it. And the Bipartisan Commission i appointed, chaired by my Campaign Lawyer and governor romneys Campaign Lawyer, came together and have offered reforms so that no one has to wait more than a half hour to vote. Lets support these efforts. It should be the power of our vote, not the size of our bank accounts, that drives our democracy. [ applause ] citizenship means standing up for the lives that gun violence steals from us each day. Ive seen the courage of parents, students, pastors, police officers, all over this country, who say, we are not afraid. Citizenship demands a sense of common purpose. Participation in the hard work of selfgovernment. An obligation to serve our communities. And i know this chamber agrees that few americans give more to their country than our diplomats and the men and women of the United States armed forces. [ applause ] thank you. [ applause ] tonight, because of the extraordinary troops and civilians who risk and lay down their lives to keep us free, the United States is more secure. When i took office, nearly 180,000 americans were serving in iraq and afghanistan. Today, all our troops are out of iraq. More than 60,000 of our troops have already come home from afghanistan. With Afghan Forces now in the lead for their own security, our troops have moved to a support role. Together, with our allies, we will complete our mission there by the end of this year. And americas longest war will finally be over. [ applause ] after 2014, we will support a unified afghanistan, as it takes responsibility for its own future. If the Afghan Government signs a Security Agreement that we have negotiated, a small force of americans could remain in afghanistan, with nato allies, to carry out two, narrow missions. Training and assisting Afghan Forces, and Counterterrorism Operations to pursue any remnants of al qaeda. For while our relationship with afghanistan will change, one thing will not. Our resolve that terrorists do not launch attacks against our country. [ applause ] the fact is, that danger remains. While weve put al qaedas core leadership on a path to defeat, the threat has evolved, as al qaeda affiliates and other extremists take root in other parts of the world. In yemen, somalia, iraq, mali, we have to keep working with partners to disrupt and disable those networks. In syria, well support the opposition that rejects the agenda of terrorist networks. Here at home, well keep strengthening our defenses and combat new threats, like cyber attacks. And as we reform our defense budget, we will have to keep faithy w our men and women in uniform and invest in the capabilities they need to succeed in future missions. [ applause ] we have to remain vigilant. But i strongly believe our leadership and our security cannot depend on our outstanding military alone. As commander in chief, i have used force when needed to protect the American People. And i will never hesitate to do so, as long as i hold this office. But i will not send troops into harms way unless it is necessary. We must fight the battles that need to be fought. Not those that terrorists prefer from us. Largescale deployments that drain our strength. And may ultimately feed extremi extremism. Even as we actively and aggressively pursue terrorists networks through more targeted efforts and by building the capacity of our foreign partners, america must move off a permanent war footing. [ applause ] thats why ive imposed prudent limits on the use of drones. For we will not be safer if people abroad believe we strike within their countries without regard for the consequence. Thats why working with this congress, i will reform our surveillance programs because the vital work off our community depends on confidence, here and abroad, that privacy of ordinary people is not being violated. [ applause ] and with the afghan war ending, this needs to be the Year Congress lifts the remaining restrictions on detainee transfers. And we close the prison at Guantanamo Bay because we counter terrorism, not just through intelligence and military actions, but by remaining true to our constitutional ideals and setting an example for the rest of the world. You see, in a world of complex threats, our security, our leadership, depends on all elements of our power, including strong and principled diplomacy. American diplomacy has rallied more than 50 countries to prevent Nuclear Materials from falling into the wrong hands. And allowed us to reduce our own reliance on cold war stockpiles. American diplomacy, backed by the threat of force, is why syrias chemical weapons are being eliminated. [ applause ] and we will continue to work with the International Community to usher in the future the Syrian People deserve. A future free of dictatorship, terror, and fear. As we speak, american diplomacy is supporting israelis and palestinians, as they engage in the difficult but necessary talks to end the conflict there. To achieve dignity and an independent state for palestinians. And lasting peace and security for the state of israel. A jewish state that knows america will always be at their side. [ applause ] and it is american diplomacy, backed by pressure, that has halted the progress of Irans Nuclear program and rolled back parts of that program for the very first time in a decade. As we gather here tonight, iran has begun to eliminate its stockpile of higher levels of enriched uranium. Its not installing advanced centrifuges. Unprecedented inspections help the world verify every day that iran is not building a bomb. And with our allies and partners, were engaged in negotiations to see if we can peacefully achieve a goal we all share, preventing iran from obtaining a nuclear weapon. [ applause ] these negotiations will be difficult. They may not succeed. We are clear about irans support for organizations like hezbollah, which threatens our allies. And were clear about the mistrust between our nations. Mistrust that cannot be wished away. But these negotiations dont rely on trust. Any longterm deal, we agree to, must be based on verifiable action that convinces us, and the International Community, that iran is not building a nuclear bomb. If john f. Kennedy and Ronald Reagan could negotiate with the soviet union, then surely a strong and confident america can negotiate with lesspowerful adversaries today. [ applause ] the sanctions that we put in place, help make this opportunity possible. But let me be clear. If this Congress Sends me a new sanctions bill now, that threatens to derail these talks, i will veto it. [ applause ] for the sake of our national security, we must give diplomacy a chance to succeed. [ applause ] if irans leaders do not seize this opportunity, then i will be the first to call for more sanctions and stand ready to exercise all options to make sure iran does not build a nuclear weapon. But if irans leaders do seize the chance, and well know soon enough, then iran could take an important step to rejoin the community of nations. And we will have resolved one of the leading security challenges of our time without the risks of war. Finally, lets remember that our leadership is defined, not just by our defense against threats. But by the enormous opportunities to do good and promote understanding around the globe. To forge greater cooperation, to expand new markets, to free people from fear and want. And no one is better positioned to take advantage of those opportunities than america. Our alliance with europe remains the strongest the world has ever known. From tunisia to burma, were supporting those who are willing to do the hard work of building democracy. In ukraine, we stand for the principle that all people have the right to express themselves, freely and peacefully. And they have a say in their countrys future. Across africa, were bringing together businesses and governments to double access to electricity and help end extreme poverty. In the americas, were building new ties of commerce. But were also expanding cultural and educational exchanges among young people. And we will continue to focus on the asiapacific, where we support our allies, shape a future of greater security and prosperity and extend a hand to those devastated by disaster. As we did in the philippines, when our marines and civilians rushed to aid those battered by a typhoon. And who were greeted with words like, we will never forget your kindness. And god bless america. We do these things because they help promote our longterm security. And we do them because we believe in the inherent dignity and equality of every human being, regardless of race, or religion, creed, or sexual orientation. And next week, the world will see one expression of that commitment, when team usa marches the red, white and blue into the Olympic Stadium and brings home the gold. [ applause ] [ applause ] my fellow americans, no other country in the world does what we do. On every issue. The world turns to us. Not simply because of the size of our economy or our military might, but because of the ideals we stand for. And the burdens we bear to advance them. No one knows this better than those who serve in uniform. As this time of war draws to a close, a new generation of heroes returns to civilian life. Well keep slashing that backlog so our veterans receive the benefits they earned, and our Wounded Warriors receive the health care, including the Mental Health care, that they need. [ applause ] well keep working to help all our veterans translate their skills and leadership into jobs here at home. And we will all continue to join forces to honor and support our remarkable military families. Let me tell you about one of those families ive come to know. I first met cory remsburg, a proud army ranger at omaha beach, on the 60th anniversary of dday, along with some of his fellow rangers. He walked me through the program and the ceremony. He was a strong, impressive young man. Had an easy manner. He was as sharp as a tack. We joked around, took pictures. I told him to stay in touch. A few months later, on his tenth deployment, cory was nearly killed by a massive roadside bomb in afghanistan. His comrades found him in a canal, facedown, underwater, shrapnel in his brain. For months, he lay in a coma. The next time i met him, in the hospital, he couldnt speak. Could barely move. Over the years, hes endured dozens of surgeries and procedures, hours of grueling rehab, every day. Even now, corys still blind in one eye. Still struggles on his left side. But slowly, steadily, with the support of caregivers like his dad, craig, and the Community Around him, cory has grown stronger. Day by day, hes learned to speak again and stand again and walk again. And hes working toward the day when he can serve his country again. My recovery has not been easy, he says. Nothing in life thats worth anything is easy. Cory is here tonight. And like the army he loves, like the america he serves, Sergeant First Class cory remsburg, does not give up and he does not quit. [ applause ] cory. [ applause ] [ applause ] [ applause ] [ applause ] [ applause ] my fellow americans, my fellow americans, men and women, like cory, remind us that america has never come easy. Our freedom, our democracy, has never been easy. Sometimes we stumble. We make mistakes. We get frustrated, or discouraged. But for more than 200 years, we have put those things aside and placed our collective shoulder to the wheel of progress, to create and build and expand the possibilities of individual achievement. To free other nations from tyranny and fear, to promote justice, and fairness and equality under the law, so that the words set to paper by our founders are made real for every citizen. The america we want for our kids, a rising america where honest work is plentiful and communities are strong, where prosperity is widely shared and opportunity for all lets us go as far as our dreams and toil will take us. None of it is easy. But if we Work Together, if we summon what is best in us, the way cory summoned what is best in him, in our feet planted firmly in today but our eyes cast toward tomorrow, i know it is within our reach. Believe it. God bless you. And god bless the United States of america. [ applause ] and there you have the president , his state of the union 2014. 1 05. He said the American People do not stand still. He called on congress to proceed to a year of action. And it was so moving, george, when he talked about u. S. Army ranger first class cory remsburg. Tenth deployment for the u. S. Military. So severely injured. And he got a 1 34 standing ovation in that hall. Months and years of recover. His father by his side all the way. And his father was by his side tonight. We see the president leaving the chamber right there. And the president speaking for a little over an hour, as you said. Trying to strike a note of optimism, not just action at the beginning. Talking up the economy at the beginning of the speech, something he had been reluctant to do, through the campaign. Giving the American People credit for that. No mea culpas on health care. He was in your face. Telling congress, do not repeal it. You tried 40 times. Dont try to repeal obamacare. And getting huge reaction, were seeing online and facebook, when he talked about raising the minimum wage, giving america a raise. And equal pay for equal work for women. The fact that women only earn 70 cents on the dollar is an embarrassment for america. And he said, lets do away with the mad men episode, he added on that. Lets go to Jonathan Karl, white house correspondent, Jonathan Karl, who has been in there the whole time. He can see everything that we cannot see. Jon, what was that like in the room . Reporter i have to tell you, diane, to feel the room when the president spoke about cory remsburg, i have been here for a number of state of the unions. Ive been here on some raucous occasions. Thats about as loud a decibel level as ive heard in this room. The sustained applause, the chamber almost seemed to shake, as he gave that tribute to cory remsburg. And one other moment to point to, when the president was talking about opportunity in america. And the example he used was the son of a barkeeper, becoming speaker of the house. Of course, a tribute to speaker of the house john boehner. And ill tell you, everybody, of course, until that moment, that was the loudest applause of the night. And all on the republican side looked at each other and smiled because its that kind of talk that usually gets john boehner to cry. And its trending on twitter, as well. I want to stick with cory remsburg, for a moment. Martha raddatz spent so much time with our american military. Cory remsburg, a true American Hero and representative of so many men and women, just back from iraq. And so many men and women, who have fought and sacrificed and been injured and have had to come back and heal here in america. Reporter george and diane, that was a symbolic moment. If you get past that, which is hard to do, i will admit, this is the fight for our veterans going forward. This is the fight for our country going forward. 2. 5 million americans have fought in the wars in the past 12 years. 1 in 50 have physical injuries. One in five have either depression, posttraumatic stress or brain injury. This is the next fight. You know the president when he talks about the wars, likes to say, the wars are ending. This is the next fight for our veterans. And in iraq, i have to say, going down those streets and remembering how many were injured, how many were killed in that war, and the americans may be out of that war. But that conflict is not over. Al qaeda has a very, very heavy presence there still, george. And a lot of difficult negotiations, as well, in afghanistan. A small force likely to remain as americans leave. Back here home, as well, matthew dowd, the big question is going to be, we heard the reaction in the hall. Did americans give in to the president and what did they take away . All of us thought the cory remsburg, the last two minutes was unbelievably moving. The problem for the president , is that im afraid that Many Americans had tuned out to this. I thought there were takeaway lines. As jon said, the son of a barkeep can be speaker and the son of a single mom can be president of the United States. And the rift he had on women, when he talked about equal pay for equal work. When you look at whats going to have an effect on the american public, i think it will have no impact. They have a hard time impacting. Democrats will say he did a great job. Republicans will say, hes like frank sinatra. He is saying, do it my way. And much of his speech was do it my way. And independents will shrug and say, well wait and see. David plouffe, youve been in the white house. Had been in the white house for many years. How does the president follow up on the speech to make it effective . Thats the essential question in the white house. Raising the minimum wage, equal pay for equal work. I think the most likely issues to have longevity, to get votes in congress, build emergency hubs around the country. Thats the challenges. What can you pick out of the speech and build some energy around, so you continue to get the attention of the American People. Force some action. Jeff zeleny covers congress for us. And starting to get reaction from the man who last year gave republican response, marco rubio. Reporter thats right, george. Senator rubio emailed me from the chamber. Putting a reality check on this. He says this president Still Believes that spending more and new laws are the answer. Its a biggovernment kind of president. He gives it a thumbs down, george. We should point out to everyone that the republican response will be coming up. It is this year, congresswoman Cathy Mcmorris rodgers have washington state. She is the chair of the republican conference. Well be hearing from her later, as we watch the president leave the hall. Let me turn back to donna brazile. Donna, what did you think . I thought the president was very aspirational. He used the word opportunity a lot. And he vowed to take action if Congress Continues to do nothing on many issues. There wasnt a lot of substance, in terms of new policy initiatives. But the president repeated that he wanted to get things done for the American People. Bill kristol, the president talks about he doesnt have hope that he can persuade pundits in congress to come his way. Anything you can see he can grab on to . Not much. If youre a republican, did he persuade you of anything . Did he offer you olive branches or carrots to get you to come along on something . This wasnt much there. As reagan and clinton did, did he make republicans nervous at any point in the speech . Was there a moment when they thought this will be tough to fight . A couple of the small pieces, that might be the case. But overall, it does if youre a conservative, this sounds like a litany of one more smallishbig Government Program after another. A lot of big Government Programs, without any big idea, i think, was particularly compelling. You got a salute from speaker boehner. Speaker boehner is a gentleman. Our thanks to all of you and everyone standing by. We have the republican response coming up. Were going to take a short break and be right back with you. State of the union. On expedia you can book any flight, car and hotel together to save even more. Plus, get an extra 100 when you build your custom trip. Expedia, find yours. 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