Mr. Speaker, Mr. Vice President, members of Congress, distinguished guests,
and fellow Americans:

Last month, I went to Andrews Air Force Base and welcomed home some of our
last troops to serve in Iraq. Together, we offered a final, proud salute to
the colors under which more than a million of our fellow citizens fought -- and
several thousand gave their lives.

We gather tonight knowing that this generation of heroes has made the United
States safer and more respected around the world. For the first time in nine
years, there are no Americans fighting in Iraq. For the first time in two
decades, Osama bin Laden is not a threat to this country. Most of al-Qaeda's
top lieutenants have been defeated. The Taliban's momentum has been broken,
and some troops in Afghanistan have begun to come home.

These achievements are a testament to the courage, selflessness, and teamwork
of America's Armed Forces. At a time when too many of our institutions have
let us down, they exceed all expectations. They're not consumed with personal
ambition. They don't obsess over their differences. They focus on the mission
at hand. They work together.

Imagine what we could accomplish if we followed their example. Think about the
America within our reach: A country that leads the world in educating its
people. An America that attracts a new generation of high-tech manufacturing
and high-paying jobs. A future where we're in control of our own energy, and
our security and prosperity aren't so tied to unstable parts of the world. An
economy built to last, where hard work pays off, and responsibility is
rewarded.

We can do this. I know we can, because we've done it before. At the end of
World War II, when another generation of heroes returned home from combat,
they built the strongest economy and middle class the world has ever known. My
grandfather, a veteran of Patton's Army, got the chance to go to college on
the GI Bill. My grandmother, who worked on a bomber assembly line, was part of
a workforce that turned out the best products on Earth.

The two of them shared the optimism of a Nation that had triumphed over a
depression and fascism. They understood they were part of something larger;
that they were contributing to a story of success that every American had a
chance to share -- the basic American promise that if you worked hard, you
could do well enough to raise a family, own a home, send your kids to college,
and put a little away for retirement.

The defining issue of our time is how to keep that promise alive. No challenge
is more urgent. No debate is more important. We can either settle for a
country where a shrinking number of people do really well, while a growing
number of Americans barely get by. Or we can restore an economy where everyone
gets a fair shot, everyone does their fair share, and everyone plays by the
same set of rules. What's at stake are not Democratic values or Republican
values, but American values. We have to reclaim them.

Let's remember how we got here. Long before the recession, jobs and
manufacturing began leaving our shores. Technology made businesses more
efficient, but also made some jobs obsolete. Folks at the top saw their
incomes rise like never before, but most hardworking Americans struggled with
costs that were growing, paychecks that weren't, and personal debt that kept
piling up.

In 2008, the house of cards collapsed. We learned that mortgages had been sold
to people who couldn't afford or understand them. Banks had made huge bets and
bonuses with other people's money. Regulators had looked the other way, or
didn't have the authority to stop the bad behavior.

It was wrong. It was irresponsible. And it plunged our economy into a crisis
that put millions out of work, saddled us with more debt, and left innocent,
hard-working Americans holding the bag. In the six months before I took
office, we lost nearly four million jobs. And we lost another four million
before our policies were in full effect.

Those are the facts. But so are these. In the last 22 months, businesses have
created more than three million jobs. Last year, they created the most jobs
since 2005. American manufacturers are hiring again, creating jobs for the
first time since the late 1990s. Together, we've agreed to cut the deficit by
more than $2 trillion. And we've put in place new rules to hold Wall Street
accountable, so a crisis like that never happens again.

The state of our Union is getting stronger. And we've come too far to turn
back now. As long as I'm President, I will work with anyone in this chamber to
build on this momentum. But I intend to fight obstruction with action, and I
will oppose any effort to return to the very same policies that brought on
this economic crisis in the first place.

No, we will not go back to an economy weakened by outsourcing, bad debt, and
phony financial profits. Tonight, I want to speak about how we move forward,
and lay out a blueprint for an economy that's built to last -- an economy built
on American manufacturing, American energy, skills for American workers, and a
renewal of American values.

This blueprint begins with American manufacturing.

On the day I took office, our auto industry was on the verge of collapse. Some
even said we should let it die. With a million jobs at stake, I refused to let
that happen. In exchange for help, we demanded responsibility. We got workers
and automakers to settle their differences. We got the industry to retool and
restructure. Today, General Motors is back on top as the world's number one
automaker. Chrysler has grown faster in the U.S. than any major car company.
Ford is investing billions in U.S. plants and factories. And together, the
entire industry added nearly 160,000 jobs.

We bet on American workers. We bet on American ingenuity. And tonight, the
American auto industry is back.

What's happening in Detroit can happen in other industries. It can happen in
Cleveland and Pittsburgh and Raleigh. We can't bring back every job that's
left our shores. But right now, it's getting more expensive to do business in
places like China. Meanwhile, America is more productive. A few weeks ago, the
CEO of Master Lock told me that it now makes business sense for him to bring
jobs back home. Today, for the first time in fifteen years, Master Lock's
unionized plant in Milwaukee is running at full capacity.

So we have a huge opportunity, at this moment, to bring manufacturing back.
But we have to seize it. Tonight, my message to business leaders is simple:
Ask yourselves what you can do to bring jobs back to your country, and your
country will do everything we can to help you succeed.

We should start with our tax code. Right now, companies get tax breaks for
moving jobs and profits overseas. Meanwhile, companies that choose to stay in
America get hit with one of the highest tax rates in the world. It makes no
sense, and everyone knows it.

So let's change it. First, if you're a business that wants to outsource jobs,
you shouldn't get a tax deduction for doing it. That money should be used to
cover moving expenses for companies like Master Lock that decide to bring jobs
home.

Second, no American company should be able to avoid paying its fair share of
taxes by moving jobs and profits overseas. From now on, every multinational
company should have to pay a basic minimum tax. And every penny should go
towards lowering taxes for companies that choose to stay here and hire here.

Third, if you're an American manufacturer, you should get a bigger tax cut. If
you're a high-tech manufacturer, we should double the tax deduction you get
for making products here. And if you want to relocate in a community that was
hit hard when a factory left town, you should get help financing a new plant,
equipment, or training for new workers.

My message is simple. It's time to stop rewarding businesses that ship jobs
overseas, and start rewarding companies that create jobs right here in
America. Send me these tax reforms, and I'll sign them right away.

We're also making it easier for American businesses to sell products all over
the world. Two years ago, I set a goal of doubling U.S. exports over five
years. With the bipartisan trade agreements I signed into law, we are on track
to meet that goal -- ahead of schedule. Soon, there will be millions of new
customers for American goods in Panama, Colombia, and South Korea. Soon, there
will be new cars on the streets of Seoul imported from Detroit, and Toledo,
and Chicago.

I will go anywhere in the world to open new markets for American products. And
I will not stand by when our competitors don't play by the rules. We've
brought trade cases against China at nearly twice the rate as the last
administration -- and it's made a difference. Over a thousand Americans are
working today because we stopped a surge in Chinese tires. But we need to do
more. It's not right when another country lets our movies, music, and software
be pirated. It's not fair when foreign manufacturers have a leg up on ours
only because they're heavily subsidized.

Tonight, I'm announcing the creation of a Trade Enforcement Unit that will be
charged with investigating unfair trade practices in countries like China.
There will be more inspections to prevent counterfeit or unsafe goods from
crossing our borders. And this Congress should make sure that no foreign
company has an advantage over American manufacturing when it comes to
accessing finance or new markets like Russia. Our workers are the most
productive on Earth, and if the playing field is level, I promise you --
America will always win.

I also hear from many business leaders who want to hire in the United States
but can't find workers with the right skills. Growing industries in science
and technology have twice as many openings as we have workers who can do the
job. Think about that -- openings at a time when millions of Americans are
looking for work.

That's inexcusable. And we know how to fix it.

Jackie Bray is a single mom from North Carolina who was laid off from her job
as a mechanic. Then Siemens opened a gas turbine factory in Charlotte, and
formed a partnership with Central Piedmont Community College. The company
helped the college design courses in laser and robotics training. It paid
Jackie's tuition, then hired her to help operate their plant.

I want every American looking for work to have the same opportunity as Jackie
did. Join me in a national commitment to train two million Americans with
skills that will lead directly to a job. My Administration has already lined
up more companies that want to help. Model partnerships between businesses
like Siemens and community colleges in places like Charlotte, Orlando, and
Louisville are up and running. Now you need to give more community colleges
the resources they need to become community career centers -- places that teach
people skills that local businesses are looking for right now, from data
management to high-tech manufacturing.

And I want to cut through the maze of confusing training programs, so that
from now on, people like Jackie have one program, one website, and one place
to go for all the information and help they need. It's time to turn our
unemployment system into a reemployment system that puts people to work.

These reforms will help people get jobs that are open today. But to prepare
for the jobs of tomorrow, our commitment to skills and education has to start
earlier.

For less than one percent of what our Nation spends on education each year,
we've convinced nearly every State in the country to raise their standards for
teaching and learning -- the first time that's happened in a generation.

But challenges remain. And we know how to solve them.

At a time when other countries are doubling down on education, tight budgets
have forced States to lay off thousands of teachers. We know a good teacher
can increase the lifetime income of a classroom by over $250,000. A great
teacher can offer an escape from poverty to the child who dreams beyond his
circumstance. Every person in this chamber can point to a teacher who changed
the trajectory of their lives. Most teachers work tirelessly, with modest pay,
sometimes digging into their own pocket for school supplies -- just to make a
difference.

Teachers matter. So instead of bashing them, or defending the status quo,
let's offer schools a deal. Give them the resources to keep good teachers on
the job, and reward the best ones. In return, grant schools flexibility: To
teach with creativity and passion; to stop teaching to the test; and to
replace teachers who just aren't helping kids learn.

We also know that when students aren't allowed to walk away from their
education, more of them walk the stage to get their diploma. So tonight, I
call on every State to require that all students stay in high school until
they graduate or turn eighteen.

When kids do graduate, the most daunting challenge can be the cost of college.
At a time when Americans owe more in tuition debt than credit card debt, this
Congress needs to stop the interest rates on student loans from doubling in
July. Extend the tuition tax credit we started that saves middle-class
families thousands of dollars. And give more young people the chance to earn
their way through college by doubling the number of work-study jobs in the
next five years.

Of course, it's not enough for us to increase student aid. We can't just keep
subsidizing skyrocketing tuition; we'll run out of money. States also need to
do their part, by making higher education a higher priority in their budgets.
And colleges and universities have to do their part by working to keep costs
down. Recently, I spoke with a group of college presidents who've done just
that. Some schools re-design courses to help students finish more quickly.
Some use better technology. The point is, it's possible. So let me put
colleges and universities on notice: If you can't stop tuition from going up,
the funding you get from taxpayers will go down. Higher education can't be a
luxury -- it's an economic imperative that every family in America should be
able to afford.

Let's also remember that hundreds of thousands of talented, hardworking
students in this country face another challenge: The fact that they aren't yet
American citizens. Many were brought here as small children, are American
through and through, yet they live every day with the threat of deportation.
Others came more recently, to study business and science and engineering, but
as soon as they get their degree, we send them home to invent new products and
create new jobs somewhere else.

That doesn't make sense.

I believe as strongly as ever that we should take on illegal immigration.
That's why my Administration has put more boots on the border than ever
before. That's why there are fewer illegal crossings than when I took office.

The opponents of action are out of excuses. We should be working on
comprehensive immigration reform right now. But if election-year politics
keeps Congress from acting on a comprehensive plan, let's at least agree to
stop expelling responsible young people who want to staff our labs, start new
businesses, and defend this country. Send me a law that gives them the chance
to earn their citizenship. I will sign it right away.

You see, an economy built to last is one where we encourage the talent and
ingenuity of every person in this country. That means women should earn equal
pay for equal work. It means we should support everyone who's willing to work;
and every risk-taker and entrepreneur who aspires to become the next Steve
Jobs.

After all, innovation is what America has always been about. Most new jobs are
created in start-ups and small businesses. So let's pass an agenda that helps
them succeed. Tear down regulations that prevent aspiring entrepreneurs from
getting the financing to grow. Expand tax relief to small businesses that are
raising wages and creating good jobs. Both parties agree on these ideas. So
put them in a bill, and get it on my desk this year.

Innovation also demands basic research. Today, the discoveries taking place in
our federally-financed labs and universities could lead to new treatments that
kill cancer cells but leave healthy ones untouched. New lightweight vests for
cops and soldiers that can stop any bullet. Don't gut these investments in our
budget. Don't let other countries win the race for the future. Support the
same kind of research and innovation that led to the computer chip and the
Internet; to new American jobs and new American industries.

Nowhere is the promise of innovation greater than in American-made energy.
Over the last three years, we've opened millions of new acres for oil and gas
exploration, and tonight, I'm directing my Administration to open more than 75
percent of our potential offshore oil and gas resources. Right now, American
oil production is the highest that it's been in eight years. That's right --
eight years. Not only that -- last year, we relied less on foreign oil than in
any of the past sixteen years.

But with only 2 percent of the world's oil reserves, oil isn't enough. This
country needs an all-out, all-of-the-above strategy that develops every
available source of American energy -- a strategy that's cleaner, cheaper, and
full of new jobs.

We have a supply of natural gas that can last America nearly one hundred
years, and my Administration will take every possible action to safely develop
this energy. Experts believe this will support more than 600,000 jobs by the
end of the decade. And I'm requiring all companies that drill for gas on
public lands to disclose the chemicals they use. America will develop this
resource without putting the health and safety of our citizens at risk.

The development of natural gas will create jobs and power trucks and factories
that are cleaner and cheaper, proving that we don't have to choose between our
environment and our economy. And by the way, it was public research dollars,
over the course of thirty years, that helped develop the technologies to
extract all this natural gas out of shale rock -- reminding us that Government
support is critical in helping businesses get new energy ideas off the ground.

What's true for natural gas is true for clean energy. In three years, our
partnership with the private sector has already positioned America to be the
world's leading manufacturer of high-tech batteries. Because of federal
investments, renewable energy use has nearly doubled. And thousands of
Americans have jobs because of it.

When Bryan Ritterby was laid off from his job making furniture, he said he
worried that at 55, no one would give him a second chance. But he found work
at Energetx, a wind turbine manufacturer in Michigan. Before the recession,
the factory only made luxury yachts. Today, it's hiring workers like Bryan,
who said, "I'm proud to be working in the industry of the future."

Our experience with shale gas shows us that the payoffs on these public
investments don't always come right away. Some technologies don't pan out;
some companies fail. But I will not walk away from the promise of clean
energy. I will not walk away from workers like Bryan. I will not cede the wind
or solar or battery industry to China or Germany because we refuse to make the
same commitment here. We have subsidized oil companies for a century. That's
long enough. It's time to end the taxpayer giveaways to an industry that's
rarely been more profitable, and double-down on a clean energy industry that's
never been more promising. Pass clean energy tax credits and create these
jobs.

We can also spur energy innovation with new incentives. The differences in
this chamber may be too deep right now to pass a comprehensive plan to fight
climate change. But there's no reason why Congress shouldn't at least set a
clean energy standard that creates a market for innovation. So far, you
haven't acted. Well tonight, I will. I'm directing my Administration to allow
the development of clean energy on enough public land to power three million
homes. And I'm proud to announce that the Department of Defense, the world's
largest consumer of energy, will make one of the largest commitments to clean
energy in history -- with the Navy purchasing enough capacity to power a
quarter of a million homes a year.

Of course, the easiest way to save money is to waste less energy. So here's
another proposal: Help manufacturers eliminate energy waste in their factories
and give businesses incentives to upgrade their buildings. Their energy bills
will be $100 billion lower over the next decade, and America will have less
pollution, more manufacturing, and more jobs for construction workers who need
them. Send me a bill that creates these jobs.

Building this new energy future should be just one part of a broader agenda to
repair America's infrastructure. So much of America needs to be rebuilt. We've
got crumbling roads and bridges. A power grid that wastes too much energy. An
incomplete high-speed broadband network that prevents a small business owner
in rural America from selling her products all over the world.

During the Great Depression, America built the Hoover Dam and the Golden Gate
Bridge. After World War II, we connected our States with a system of highways.
Democratic and Republican administrations invested in great projects that
benefited everybody, from the workers who built them to the businesses that
still use them today.

In the next few weeks, I will sign an Executive Order clearing away the red
tape that slows down too many construction projects. But you need to fund
these projects. Take the money we're no longer spending at war, use half of it
to pay down our debt, and use the rest to do some nation-building right here
at home.

There's never been a better time to build, especially since the construction
industry was one of the hardest-hit when the housing bubble burst. Of course,
construction workers weren't the only ones hurt. So were millions of innocent
Americans who've seen their home values decline. And while Government can't
fix the problem on its own, responsible homeowners shouldn't have to sit and
wait for the housing market to hit bottom to get some relief.

That's why I'm sending this Congress a plan that gives every responsible
homeowner the chance to save about $3,000 a year on their mortgage, by
refinancing at historically low interest rates. No more red tape. No more
runaround from the banks. A small fee on the largest financial institutions
will ensure that it won't add to the deficit, and will give banks that were
rescued by taxpayers a chance to repay a deficit of trust.

Let's never forget: Millions of Americans who work hard and play by the rules
every day deserve a Government and a financial system that do the same. It's
time to apply the same rules from top to bottom: No bailouts, no handouts, and
no copouts. An America built to last insists on responsibility from everybody.

We've all paid the price for lenders who sold mortgages to people who couldn't
afford them, and buyers who knew they couldn't afford them. That's why we need
smart regulations to prevent irresponsible behavior. Rules to prevent
financial fraud, or toxic dumping, or faulty medical devices, don't destroy
the free market. They make the free market work better.

There is no question that some regulations are outdated, unnecessary, or too
costly. In fact, I've approved fewer regulations in the first three years of
my presidency than my Republican predecessor did in his. I've ordered every
federal agency to eliminate rules that don't make sense. We've already
announced over 500 reforms, and just a fraction of them will save business and
citizens more than $10 billion over the next five years. We got rid of one
rule from 40 years ago that could have forced some dairy farmers to spend
$10,000 a year proving that they could contain a spill -- because milk was
somehow classified as an oil. With a rule like that, I guess it was worth
crying over spilled milk.

I'm confident a farmer can contain a milk spill without a federal agency
looking over his shoulder. But I will not back down from making sure an oil
company can contain the kind of oil spill we saw in the Gulf two years ago. I
will not back down from protecting our kids from mercury pollution, or making
sure that our food is safe and our water is clean. I will not go back to the
days when health insurance companies had unchecked power to cancel your
policy, deny you coverage, or charge women differently from men.

And I will not go back to the days when Wall Street was allowed to play by its
own set of rules. The new rules we passed restore what should be any financial
system's core purpose: Getting funding to entrepreneurs with the best ideas,
and getting loans to responsible families who want to buy a home, start a
business, or send a kid to college.

So if you're a big bank or financial institution, you are no longer allowed to
make risky bets with your customers' deposits. You're required to write out a
"living will" that details exactly how you'll pay the bills if you fail --
because the rest of us aren't bailing you out ever again. And if you're a
mortgage lender or a payday lender or a credit card company, the days of
signing people up for products they can't afford with confusing forms and
deceptive practices are over. Today, American consumers finally have a
watchdog in Richard Cordray with one job: To look out for them.

We will also establish a Financial Crimes Unit of highly trained investigators
to crack down on large-scale fraud and protect people's investments. Some
financial firms violate major anti-fraud laws because there's no real penalty
for being a repeat offender. That's bad for consumers, and it's bad for the
vast majority of bankers and financial service professionals who do the right
thing. So pass legislation that makes the penalties for fraud count.

And tonight, I am asking my Attorney General to create a special unit of
federal prosecutors and leading state attorneys general to expand our
investigations into the abusive lending and packaging of risky mortgages that
led to the housing crisis. This new unit will hold accountable those who broke
the law, speed assistance to homeowners, and help turn the page on an era of
recklessness that hurt so many Americans.

A return to the American values of fair play and shared responsibility will
help us protect our people and our economy. But it should also guide us as we
look to pay down our debt and invest in our future.

Right now, our most immediate priority is stopping a tax hike on 160 million
working Americans while the recovery is still fragile. People cannot afford
losing $40 out of each paycheck this year. There are plenty of ways to get
this done. So let's agree right here, right now: No side issues. No drama.
Pass the payroll tax cut without delay.

When it comes to the deficit, we've already agreed to more than $2 trillion in
cuts and savings. But we need to do more, and that means making choices. Right
now, we're poised to spend nearly $1 trillion more on what was supposed to be
a temporary tax break for the wealthiest 2 percent of Americans. Right now,
because of loopholes and shelters in the tax code, a quarter of all
millionaires pay lower tax rates than millions of middle-class households.
Right now, Warren Buffett pays a lower tax rate than his secretary.

Do we want to keep these tax cuts for the wealthiest Americans? Or do we want
to keep our investments in everything else -- like education and medical
research; a strong military and care for our veterans? Because if we're
serious about paying down our debt, we can't do both.

The American people know what the right choice is. So do I. As I told the
Speaker this summer, I'm prepared to make more reforms that rein in the long
term costs of Medicare and Medicaid, and strengthen Social Security, so long
as those programs remain a guarantee of security for seniors.

But in return, we need to change our tax code so that people like me, and an
awful lot of Members of Congress, pay our fair share of taxes. Tax reform
should follow the Buffett rule: If you make more than $1 million a year, you
should not pay less than 30 percent in taxes. And my Republican friend Tom
Coburn is right: Washington should stop subsidizing millionaires. In fact, if
you're earning a million dollars a year, you shouldn't get special tax
subsidies or deductions. On the other hand, if you make under $250,000 a year,
like 98 percent of American families, your taxes shouldn't go up. You're the
ones struggling with rising costs and stagnant wages. You're the ones who need
relief.

Now, you can call this class warfare all you want. But asking a billionaire to
pay at least as much as his secretary in taxes? Most Americans would call that
common sense.

We don't begrudge financial success in this country. We admire it. When
Americans talk about folks like me paying my fair share of taxes, it's not
because they envy the rich. It's because they understand that when I get tax
breaks I don't need and the country can't afford, it either adds to the
deficit, or somebody else has to make up the difference -- like a senior on a
fixed income; or a student trying to get through school; or a family trying to
make ends meet. That's not right. Americans know it's not right. They know
that this generation's success is only possible because past generations felt
a responsibility to each other, and to their country's future, and they know
our way of life will only endure if we feel that same sense of shared
responsibility. That's how we'll reduce our deficit. That's an America built
to last.

I recognize that people watching tonight have differing views about taxes and
debt; energy and health care. But no matter what party they belong to, I bet
most Americans are thinking the same thing right now: Nothing will get done
this year, or next year, or maybe even the year after that, because Washington
is broken.

Can you blame them for feeling a little cynical?

The greatest blow to confidence in our economy last year didn't come from
events beyond our control. It came from a debate in Washington over whether
the United States would pay its bills or not. Who benefited from that fiasco?

I've talked tonight about the deficit of trust between Main Street and Wall
Street. But the divide between this city and the rest of the country is at
least as bad -- and it seems to get worse every year.

Some of this has to do with the corrosive influence of money in politics. So
together, let's take some steps to fix that. Send me a bill that bans insider
trading by Members of Congress, and I will sign it tomorrow. Let's limit any
elected official from owning stocks in industries they impact. Let's make sure
people who bundle campaign contributions for Congress can't lobby Congress,
and vice versa -- an idea that has bipartisan support, at least outside of
Washington.

Some of what's broken has to do with the way Congress does its business these
days. A simple majority is no longer enough to get anything -- even routine
business -- passed through the Senate. Neither party has been blameless in
these tactics. Now both parties should put an end to it. For starters, I ask
the Senate to pass a rule that all judicial and public service nominations
receive a simple up or down vote within 90 days.

The executive branch also needs to change. Too often, it's inefficient,
outdated and remote. That's why I've asked this Congress to grant me the
authority to consolidate the federal bureaucracy so that our Government is
leaner, quicker, and more responsive to the needs of the American people.

Finally, none of these reforms can happen unless we also lower the temperature
in this town. We need to end the notion that the two parties must be locked in
a perpetual campaign of mutual destruction; that politics is about clinging to
rigid ideologies instead of building consensus around common sense ideas.

I'm a Democrat. But I believe what Republican Abraham Lincoln believed: That
Government should do for people only what they cannot do better by themselves,
and no more. That's why my education reform offers more competition, and more
control for schools and States. That's why we're getting rid of regulations
that don't work. That's why our health care law relies on a reformed private
market, not a Government program.

On the other hand, even my Republican friends who complain the most about
Government spending have supported federally-financed roads, and clean energy
projects, and federal offices for the folks back home.

The point is, we should all want a smarter, more effective Government. And
while we may not be able to bridge our biggest philosophical differences this
year, we can make real progress. With or without this Congress, I will keep
taking actions that help the economy grow. But I can do a whole lot more with
your help. Because when we act together, there is nothing the United States of
America can't achieve.

That is the lesson we've learned from our actions abroad over the last few
years.

Ending the Iraq war has allowed us to strike decisive blows against our
enemies. From Pakistan to Yemen, the al Qaeda operatives who remain are
scrambling, knowing that they can't escape the reach of the United States of
America.

From this position of strength, we've begun to wind down the war in
Afghanistan. Ten thousand of our troops have come home. Twenty-three thousand
more will leave by the end of this summer. This transition to Afghan lead will
continue, and we will build an enduring partnership with Afghanistan, so that
it is never again a source of attacks against America.

As the tide of war recedes, a wave of change has washed across the Middle East
and North Africa, from Tunis to Cairo; from Sana'a to Tripoli. A year ago,
Qadhafi was one of the world's longest-serving dictators -- a murderer with
American blood on his hands. Today, he is gone. And in Syria, I have no doubt
that the Assad regime will soon discover that the forces of change can't be
reversed, and that human dignity can't be denied.

How this incredible transformation will end remains uncertain. But we have a
huge stake in the outcome. And while it is ultimately up to the people of the
region to decide their fate, we will advocate for those values that have
served our own country so well. We will stand against violence and
intimidation. We will stand for the rights and dignity of all human beings --
men and women; Christians, Muslims, and Jews. We will support policies that
lead to strong and stable democracies and open markets, because tyranny is no
match for liberty.

And we will safeguard America's own security against those who threaten our
citizens, our friends, and our interests. Look at Iran. Through the power of
our diplomacy, a world that was once divided about how to deal with Iran's
nuclear program now stands as one. The regime is more isolated than ever
before; its leaders are faced with crippling sanctions, and as long as they
shirk their responsibilities, this pressure will not relent. Let there be no
doubt: America is determined to prevent Iran from getting a nuclear weapon,
and I will take no options off the table to achieve that goal. But a peaceful
resolution of this issue is still possible, and far better, and if Iran
changes course and meets its obligations, it can rejoin the community of
nations.

The renewal of American leadership can be felt across the globe. Our oldest
alliances in Europe and Asia are stronger than ever. Our ties to the Americas
are deeper. Our iron-clad commitment to Israel's security has meant the
closest military cooperation between our two countries in history. We've made
it clear that America is a Pacific power, and a new beginning in Burma has lit
a new hope. From the coalitions we've built to secure nuclear materials, to
the missions we've led against hunger and disease; from the blows we've dealt
to our enemies; to the enduring power of our moral example, America is back.

Anyone who tells you otherwise, anyone who tells you that America is in
decline or that our influence has waned, doesn't know what they're talking
about. That's not the message we get from leaders around the world, all of
whom are eager to work with us. That's not how people feel from Tokyo to
Berlin; from Cape Town to Rio; where opinions of America are higher than
they've been in years. Yes, the world is changing; no, we can't control every
event. But America remains the one indispensable nation in world affairs --
and as long as I'm President, I intend to keep it that way.

That's why, working with our military leaders, I have proposed a new defense
strategy that ensures we maintain the finest military in the world, while
saving nearly half a trillion dollars in our budget. To stay one step ahead of
our adversaries, I have already sent this Congress legislation that will
secure our country from the growing danger of cyber-threats.

Above all, our freedom endures because of the men and women in uniform who
defend it. As they come home, we must serve them as well as they served us.
That includes giving them the care and benefits they have earned -- which is
why we've increased annual VA spending every year I've been President. And it
means enlisting our veterans in the work of rebuilding our Nation.

With the bipartisan support of this Congress, we are providing new tax credits
to companies that hire vets. Michelle and Jill Biden have worked with American
businesses to secure a pledge of 135,000 jobs for veterans and their families.
And tonight, I'm proposing a Veterans Job Corps that will help our communities
hire veterans as cops and firefighters, so that America is as strong as those
who defend her.

Which brings me back to where I began. Those of us who've been sent here to
serve can learn from the service of our troops. When you put on that uniform,
it doesn't matter if you're black or white; Asian or Latino; conservative or
liberal; rich or poor; gay or straight. When you're marching into battle, you
look out for the person next to you, or the mission fails. When you're in the
thick of the fight, you rise or fall as one unit, serving one Nation, leaving
no one behind.

One of my proudest possessions is the flag that the SEAL Team took with them
on the mission to get bin Laden. On it are each of their names. Some may be
Democrats. Some may be Republicans. But that doesn't matter. Just like it
didn't matter that day in the Situation Room, when I sat next to Bob Gates -- a
man who was George Bush's defense secretary; and Hillary Clinton, a woman who
ran against me for president.

All that mattered that day was the mission. No one thought about politics. No
one thought about themselves. One of the young men involved in the raid later
told me that he didn't deserve credit for the mission. It only succeeded, he
said, because every single member of that unit did their job -- the pilot who
landed the helicopter that spun out of control; the translator who kept others
from entering the compound; the troops who separated the women and children
from the fight; the SEALs who charged up the stairs. More than that, the
mission only succeeded because every member of that unit trusted each other --
because you can't charge up those stairs, into darkness and danger, unless you
know that there's someone behind you, watching your back.

So it is with America. Each time I look at that flag, I'm reminded that our
destiny is stitched together like those fifty stars and those thirteen
stripes. No one built this country on their own. This Nation is great because
we built it together. This Nation is great because we worked as a team. This
Nation is great because we get each other's backs. And if we hold fast to that
truth, in this moment of trial, there is no challenge too great; no mission
too hard. As long as we're joined in common purpose, as long as we maintain
our common resolve, our journey moves forward, our future is hopeful, and the
state of our Union will always be strong.

Thank you, God bless you, and may God bless the United States of America.