Thank you very much. Mr. Speaker, Vice President Cheney, Members of Congress,
distinguished guests, fellow citizens: As we gather tonight, our Nation is at
war; our economy is in recession; and the civilized world faces unprecedented
dangers. Yet, the state of our Union has never been stronger.

We last met in an hour of shock and suffering. In 4 short months, our Nation has
comforted the victims, begun to rebuild New York and the Pentagon, rallied a
great coalition, captured, arrested, and rid the world of thousands of
terrorists, destroyed Afghanistan's terrorist training camps, saved a people
from starvation, and freed a country from brutal oppression.

The American flag flies again over our Embassy in Kabul. Terrorists who once
occupied Afghanistan now occupy cells at Guantanamo Bay. And terrorist leaders
who urged followers to sacrifice their lives are running for their own.

America and Afghanistan are now allies against terror. We'll be partners in
rebuilding that country. And this evening we welcomed the distinguished interim
leader of a liberated Afghanistan, Chairman Hamid Karzai.

The last time we met in this Chamber, the mothers and daughters of Afghanistan
were captives in their own homes, forbidden from working or going to school.
Today women are free and are part of Afghanistan's new Government. And we
welcome the new Minister of Women's Affairs, Dr. Sima Samar.

Our progress is a tribute to the spirit of the Afghan people, to the resolve of
our coalition, and to the might of the United States military. When I called our
troops into action, I did so with complete confidence in their courage and
skill. And tonight, thanks to them, we are winning the war on terror. The men
and women of our Armed Forces have delivered a message now clear to every enemy
of the United States: Even 7,000 miles away, across oceans and continents, on
mountaintops and in caves, you will not escape the justice of this Nation.

For many Americans, these 4 months have brought sorrow and pain that will never
completely go away. Every day a retired firefighter returns to Ground Zero to
feel closer to his two sons who died there. At a memorial in New York, a little
boy left his football with a note for his lost father: "Dear Daddy, please take
this to heaven. I don't want to play football until I can play with you again
some day." Last month, at the grave of her husband, Micheal, a CIA officer and
marine who died in Mazar-e-Sharif, Shannon Spann said these words of farewell,
"Semper Fi, my love." Shannon is with us tonight. Shannon, I assure you and
all who have lost a loved one that our cause is just, and our country will never
forget the debt we owe Michael and all who gave their lives for freedom.

Our cause is just, and it continues. Our discoveries in Afghanistan confirmed
our worst fears and showed us the true scope of the task ahead. We have seen the
depth of our enemies' hatred in videos where they laugh about the loss of
innocent life. And the depth of their hatred is equaled by the madness of the
destruction they design. We have found diagrams of American nuclear powerplants
and public water facilities, detailed instructions for making chemical weapons,
surveillance maps of American cities, and thorough descriptions of landmarks in
America and throughout the world.

What we have found in Afghanistan confirms that, far from ending there, our war
against terror is only beginning. Most of the 19 men who hijacked planes on
September the 11th were trained in Afghanistan's camps, and so were tens of
thousands of others. Thousands of dangerous killers, schooled in the methods of
murder, often supported by outlaw regimes, are now spread throughout the world
like ticking timebombs, set to go off without warning.

Thanks to the work of our law enforcement officials and coalition partners,
hundreds of terrorists have been arrested. Yet, tens of thousands of trained
terrorists are still at large. These enemies view the entire world as a
battlefield, and we must pursue them wherever they are. So long as training
camps operate, so long as nations harbor terrorists, freedom is at risk. And
America and our allies must not and will not allow it.

Our Nation will continue to be steadfast and patient and persistent in the
pursuit of two great objectives. First, we will shut down terrorist camps,
disrupt terrorist plans, and bring terrorists to justice. And second, we must
prevent the terrorists and regimes who seek chemical, biological, or nuclear
weapons from threatening the United States and the world.

Our military has put the terror training camps of Afghanistan out of business,
yet camps still exist in at least a dozen countries. A terrorist underworld,
including groups like Hamas, Hizballah, Islamic Jihad, Jaish-e-Mohammed,
operates in remote jungles and deserts and hides in the centers of large cities.

While the most visible military action is in Afghanistan, America is acting
elsewhere. We now have troops in the Philippines, helping to train that
country's armed forces to go after terrorist cells that have executed an
American and still hold hostages. Our soldiers, working with the Bosnian
Government, seized terrorists who were plotting to bomb our Embassy. Our Navy is
patrolling the coast of Africa to block the shipment of weapons and the
establishment of terrorist camps in Somalia.

My hope is that all nations will heed our call and eliminate the terrorist
parasites who threaten their countries and our own. Many nations are acting
forcefully. Pakistan is now cracking down on terror, and I admire the strong
leadership of President Musharraf. But some governments will be timid in the
face of terror. And make no mistake about it: If they do not act, America will.

Our second goal is to prevent regimes that sponsor terror from threatening
America or our friends and allies with weapons of mass destruction. Some of
these regimes have been pretty quiet since September the 11th, but we know their
true nature.

North Korea is a regime arming with missiles and weapons of mass destruction,
while starving its citizens.

Iran aggressively pursues these weapons and exports terror, while an unelected
few repress the Iranian people's hope for freedom.

Iraq continues to flaunt its hostility toward America and to support terror. The
Iraqi regime has plotted to develop anthrax and nerve gas and nuclear weapons
for over a decade. This is a regime that has already used poison gas to murder
thousands of its own citizens, leaving the bodies of mothers huddled over their
dead children. This is a regime that agreed to international inspections, then
kicked out the inspectors. This is a regime that has something to hide from the
civilized world.

States like these and their terrorist allies constitute an axis of evil, arming
to threaten the peace of the world. By seeking weapons of mass destruction,
these regimes pose a grave and growing danger. They could provide these arms to
terrorists, giving them the means to match their hatred. They could attack our
allies or attempt to blackmail the United States. In any of these cases, the
price of indifference would be catastrophic.

We will work closely with our coalition to deny terrorists and their state
sponsors the materials, technology, and expertise to make and deliver weapons of
mass destruction. We will develop and deploy effective missile defenses to
protect America and our allies from sudden attack. And all nations should know:
America will do what is necessary to ensure our Nation's security.

We'll be deliberate; yet, time is not on our side. I will not wait on events
while dangers gather. I will not stand by as peril draws closer and closer. The
United States of America will not permit the world's most dangerous regimes to
threaten us with the world's most destructive weapons.

Our war on terror is well begun, but it is only begun. This campaign may not be
finished on our watch; yet, it must be and it will be waged on our watch. We
can't stop short. If we stop now, leaving terror camps intact and terrorist
states unchecked, our sense of security would be false and temporary. History
has called America and our allies to action, and it is both our responsibility
and our privilege to fight freedom's fight.

Our first priority must always be the security of our Nation, and that will be
reflected in the budget I send to Congress. My budget supports three great goals
for America: We will win this war; we will protect our homeland; and we will
revive our economy.

September the 11th brought out the best in America and the best in this
Congress. And I join the American people in applauding your unity and resolve.
Now Americans deserve to have this same spirit directed toward addressing
problems here at home. I'm a proud member of my party. Yet as we act to win the
war, protect our people, and create jobs in America, we must act, first and
foremost, not as Republicans, not as Democrats but as Americans.

It costs a lot to fight this war. We have spent more than a billion dollars a
month, over $30 million a day, and we must be prepared for future operations.
Afghanistan proved that expensive precision weapons defeat the enemy and spare
innocent lives, and we need more of them. We need to replace aging aircraft and
make our military more agile to put our troops anywhere in the world quickly and
safely. Our men and women in uniform deserve the best weapons, the best
equipment, the best training, and they also deserve another pay raise.

My budget includes the largest increase in defense spending in two decades,
because while the price of freedom and security is high, it is never too high.
Whatever it costs to defend our country, we will pay.

The next priority of my budget is to do everything possible to protect our
citizens and strengthen our Nation against the ongoing threat of another attack.
Time and distance from the events of September the 11th will not make us safer
unless we act on its lessons. America is no longer protected by vast oceans. We
are protected from attack only by vigorous action abroad and increased vigilance
at home.

My budget nearly doubles funding for a sustained strategy of homeland security,
focused on four key areas: bioterrorism, emergency response, airport and border
security, and improved intelligence. We will develop vaccines to fight anthrax
and other deadly diseases. We'll increase funding to help States and communities
train and equip our heroic police and firefighters. We will improve intelligence
collection and sharing, expand patrols at our borders, strengthen the security
of air travel, and use technology to track the arrivals and departures of
visitors to the United States.

Homeland security will make America not only stronger but, in many ways, better.
Knowledge gained from bioterrorism research will improve public health. Stronger
police and fire departments will mean safer neighborhoods. Stricter border
enforcement will help combat illegal drugs. And as government works to better
secure our homeland, America will continue to depend on the eyes and ears of
alert citizens.

A few days before Christmas, an airline flight attendant spotted a passenger
lighting a match. The crew and passengers quickly subdued the man, who had been
trained by Al Qaida and was armed with explosives. The people on that plane were
alert and, as a result, likely saved nearly 200 lives. And tonight we welcome
and thank flight attendants Hermis Moutardier and Christina Jones.

Once we have funded our national security and our homeland security, the final
great priority of my budget is economic security for the American people. To
achieve these great national objectives--to win the war, protect the homeland,
and revitalize our economy--our budget will run a deficit that will be small and
short term, so long as Congress restrains spending and acts in a fiscally
responsible manner. We have clear priorities, and we must act at home with the
same purpose and resolve we have shown overseas. We'll prevail in the war, and
we will defeat this recession.

Americans who have lost their jobs need our help, and I support extending
unemployment benefits and direct assistance for health care coverage. Yet,
American workers want more than unemployment checks; they want a steady
paycheck. When America works, America prospers, so my economic security plan can
be summed up in one word: jobs.

Good jobs begin with good schools, and here we've made a fine start. Republicans
and Democrats worked together to achieve historic education reform so that no
child is left behind. I was proud to work with members of both parties: Chairman
John Boehner and Congressman George Miller; Senator Judd Gregg. And I was so
proud of our work, I even had nice things to say about my friend Ted Kennedy.
[Laughter] I know the folks at the Crawford coffee shop couldn't believe I'd say
such a thing-- [laughter]--but our work on this bill shows what is possible if
we set aside posturing and focus on results.

There is more to do. We need to prepare our children to read and succeed in
school with improved Head Start and early childhood development programs. We
must upgrade our teacher colleges and teacher training and launch a major
recruiting drive with a great goal for America, a quality teacher in every
classroom.

Good jobs also depend on reliable and affordable energy. This Congress must act
to encourage conservation, promote technology, build infrastructure, and it must
act to increase energy production at home so America is less dependent on
foreign oil.

Good jobs depend on expanded trade. Selling into new markets creates new jobs,
so I ask Congress to finally approve trade promotion authority.

On these two key issues, trade and energy, the House of Representatives has
acted to create jobs, and I urge the Senate to pass this legislation.

Good jobs depend on sound tax policy. Last year, some in this Hall thought my
tax relief plan was too small; some thought it was too big. But when the checks
arrived in the mail, most Americans thought tax relief was just about right.
Congress listened to the people and responded by reducing tax rates, doubling
the child credit, and ending the death tax. For the sake of long-term growth and
to help Americans plan for the future, let's make these tax cuts permanent.

The way out of this recession, the way to create jobs, is to grow the economy by
encouraging investment in factories and equipment and by speeding up tax relief
so people have more money to spend. For the sake of American workers, let's pass
a stimulus package.

Good jobs must be the aim of welfare reform. As we reauthorize these important
reforms, we must always remember the goal is to reduce dependency on government
and offer every American the dignity of a job.

Americans know economic security can vanish in an instant without health
security. I ask Congress to join me this year to enact a patients' bill of
rights, to give uninsured workers credits to help buy health coverage, to
approve an historic increase in the spending for veterans' health, and to give
seniors a sound and modern Medicare system that includes coverage for
prescription drugs.

A good job should lead to security in retirement. I ask Congress to enact new
safeguards for 401K and pension plans. Employees who have worked hard and saved
all their lives should not have to risk losing everything if their company
fails. Through stricter accounting standards and tougher disclosure
requirements, corporate America must be made more accountable to employees and
shareholders and held to the highest standards of conduct.

Retirement security also depends upon keeping the commitments of Social
Security, and we will. We must make Social Security financially stable and allow
personal retirement accounts for younger workers who choose them.

Members, you and I will work together in the months ahead on other issues:
productive farm policy; a cleaner environment; broader homeownership, especially
among minorities; and ways to encourage the good work of charities and
faith-based groups. I ask you to join me on these important domestic issues in
the same spirit of cooperation we've applied to our war against terrorism.

During these last few months, I've been humbled and privileged to see the true
character of this country in a time of testing. Our enemies believed America was
weak and materialistic, that we would splinter in fear and selfishness. They
were as wrong as they are evil.

The American people have responded magnificently, with courage and compassion,
strength and resolve. As I have met the heroes, hugged the families, and looked
into the tired faces of rescuers, I have stood in awe of the American people.

And I hope you will join me--I hope you will join me in expressing thanks to one
American for the strength and calm and comfort she brings to our Nation in
crisis, our First Lady, Laura Bush.

None of us would ever wish the evil that was done on September the 11th. Yet,
after America was attacked, it was as if our entire country looked into a mirror
and saw our better selves. We were reminded that we are citizens with
obligations to each other, to our country, and to history. We began to think
less of the goods we can accumulate and more about the good we can do.

For too long our culture has said, "If it feels good, do it." Now America is
embracing a new ethic and a new creed, "Let's roll." In the sacrifice of
soldiers, the fierce brotherhood of firefighters, and the bravery and generosity
of ordinary citizens, we have glimpsed what a new culture of responsibility
could look like. We want to be a nation that serves goals larger than self.
We've been offered a unique opportunity, and we must not let this moment pass.

My call tonight is for every American to commit at least 2 years, 4,000 hours
over the rest of your lifetime, to the service of your neighbors and your
Nation. Many are already serving, and I thank you. If you aren't sure how to
help, I've got a good place to start. To sustain and extend the best that has
emerged in America, I invite you to join the new USA Freedom Corps. The Freedom
Corps will focus on three areas of need: responding in case of crisis at home;
rebuilding our communities; and extending American compassion throughout the
world.

One purpose of the USA Freedom Corps will be homeland security. America needs
retired doctors and nurses who can be mobilized in major emergencies, volunteers
to help police and fire departments, transportation and utility workers
well-trained in spotting danger.

Our country also needs citizens working to rebuild our communities. We need
mentors to love children, especially children whose parents are in prison. And
we need more talented teachers in troubled schools. USA Freedom Corps will
expand and improve the good efforts of AmeriCorps and Senior Corps to recruit
more than 200,000 new volunteers.

And America needs citizens to extend the compassion of our country to every part
of the world. So we will renew the promise of the Peace Corps, double its
volunteers over the next 5 years, and ask it to join a new effort to encourage
development and education and opportunity in the Islamic world.

This time of adversity offers a unique moment of opportunity, a moment we must
seize to change our culture. Through the gathering momentum of millions of acts
of service and decency and kindness, I know we can overcome evil with greater
good.

And we have a great opportunity during this time of war to lead the world toward
the values that will bring lasting peace. All fathers and mothers, in all
societies, want their children to be educated and live free from poverty and
violence. No people on Earth yearn to be oppressed or aspire to servitude or
eagerly await the midnight knock of the secret police. If anyone doubts this,
let them look to Afghanistan, where the Islamic "street" greeted the fall of
tyranny with song and celebration. Let the skeptics look to Islam's own rich
history, with its centuries of learning and tolerance and progress. America will
lead by defending liberty and justice because they are right and true and
unchanging for all people everywhere.

No nation owns these aspirations, and no nation is exempt from them. We have no
intention of imposing our culture. But America will always stand firm for the
nonnegotiable demands of human dignity: the rule of law; limits on the power of
the state; respect for women; private property; free speech; equal justice; and
religious tolerance.

America will take the side of brave men and women who advocate these values
around the world, including the Islamic world, because we have a greater
objective than eliminating threats and containing resentment. We seek a just and
peaceful world beyond the war on terror.

In this moment of opportunity, a common danger is erasing old rivalries. America
is working with Russia and China and India, in ways we have never before, to
achieve peace and prosperity. In every region, free markets and free trade and
free societies are proving their power to lift lives. Together with friends and
allies from Europe to Asia and Africa to Latin America, we will demonstrate that
the forces of terror cannot stop the momentum of freedom.

The last time I spoke here, I expressed the hope that life would return to
normal. In some ways, it has. In others, it never will. Those of us who have
lived through these challenging times have been changed by them. We've come to
know truths that we will never question: Evil is real, and it must be opposed.
Beyond all differences of race or creed, we are one country, mourning together
and facing danger together. Deep in the American character, there is honor, and
it is stronger than cynicism. And many have discovered again that even in
tragedy--especially in tragedy--God is near.

In a single instant, we realized that this will be a decisive decade in the
history of liberty, that we've been called to a unique role in human events.
Rarely has the world faced a choice more clear or consequential.

Our enemies send other people's children on missions of suicide and murder. They
embrace tyranny and death as a cause and a creed. We stand for a different
choice, made long ago on the day of our founding. We affirm it again today. We
choose freedom and the dignity of every life.

Steadfast in our purpose, we now press on. We have known freedom's price. We
have shown freedom's power. And in this great conflict, my fellow Americans, we
will see freedom's victory.

Thank you all. May God bless.