Now, the price of college tuition is just one of the burdens facing the middle-class.  That's why last year I asked Vice President Biden to chair a task force on Middle-Class Families.  That's why we're nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg.  That's why we're working to lift the value of a family's single largest investment - their home.  The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments.  This year, we will step up re-financing so that homeowners can move into more affordable mortgages.  And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.
 
Now let's be clear - I did not choose to tackle this issue to get some legislative victory under my belt.  And by now it should be fairly obvious that I didn't take on health care because it was good politics.
 
I took on health care because of the stories I've heard from Americans with pre-existing conditions whose lives depend on getting coverage; patients who've been denied coverage; and families - even those with insurance - who are just one illness away from financial ruin.
 
After nearly a century of trying, we are closer than ever to bringing more security to the lives of so many Americans.  The approach we've taken would protect every American from the worst practices of the insurance industry.  It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market.  It would require every insurance plan to cover preventive care.  And by the way, I want to acknowledge our First Lady, Michelle Obama, who this year is creating a national movement to tackle the epidemic of childhood obesity and make our kids healthier.
 
Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan.  It would reduce costs and premiums for millions of families and businesses.  And according to the Congressional Budget Office - the independent organization that both parties have cited as the official scorekeeper for Congress - our approach would bring down the deficit by as much as $1 trillion over the next two decades.
 
Still, this is a complex issue, and the longer it was debated, the more skeptical people became.  I take my share of the blame for not explaining it more clearly to the American people.  And I know that with all the lobbying and horse-trading, this process left most Americans wondering what's in it for them.
 
But I also know this problem is not going away.  By the time I'm finished speaking tonight, more Americans will have lost their health insurance. Millions will lose it this year.  Our deficit will grow.  Premiums will go up.  Patients will be denied the care they need.  Small business owners will continue to drop coverage altogether.  I will not walk away from these Americans, and neither should the people in this chamber.
 
As temperatures cool, I want everyone to take another look at the plan we've proposed.  There's a reason why many doctors, nurses, and health care experts who know our system best consider this approach a vast improvement over the status quo.  But if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured, strengthen Medicare for seniors, and stop insurance company abuses, let me know.  Here's what I ask of Congress, though:  Do not walk away from reform.  Not now.  Not when we are so close.  Let us find a way to come together and finish the job for the American people.
 
Now, even as health care reform would reduce our deficit, it's not enough to dig us out of a massive fiscal hole in which we find ourselves.  It's a challenge that makes all others that much harder to solve, and one that's been subject to a lot of political posturing.
 
So let me start the discussion of government spending by setting the record straight. At the beginning of the last decade, America had a budget surplus of over $200 billion. By the time I took office, we had a one year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget. That was before I walked in the door.
 
Now if we had taken office in ordinary times, I would have liked nothing more than to start bringing down the deficit.  But we took office amid a crisis, and our efforts to prevent a second Depression have added another $1 trillion to our national debt.
 
I am absolutely convinced that was the right thing to do.  But families across the country are tightening their belts and making tough decisions.  The federal government should do the same. So tonight, I'm proposing specific steps to pay for the $1 trillion that it took to rescue the economy last year.
 
Starting in 2011, we are prepared to freeze government spending for three years.  Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will.  Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't.  And if I have to enforce this discipline by veto, I will.
 
We will continue to go through the budget line by line to eliminate programs that we can't afford and don't work.  We've already identified $20 billion in savings for next year. To help working families, we will extend our middle-class tax cuts.  But at a time of record deficits, we will not continue tax cuts for oil companies, investment fund managers, and those making over $250,000 a year.  We just can't afford it.
 
Now, even after paying for what we spent on my watch, we will still face the massive deficit we had when I took office.  More importantly, the cost of Medicare, Medicaid, and Social Security will continue to skyrocket.  That's why I've called for a bipartisan, Fiscal Commission, modeled on a proposal by Republican Judd Gregg and Democrat Kent Conrad.  This can't be one of those Washington gimmicks that lets us pretend we solved a problem.  The Commission will have to provide a specific set of solutions by a certain deadline.  Yesterday, the Senate blocked a bill that would have created this commission.  So I will issue an executive order that will allow us to go forward, because I refuse to pass this problem on to another generation of Americans.  And when the vote comes tomorrow, the Senate should restore the pay-as-you-go law that was a big reason why we had record surpluses in the 1990s.
 
I know that some in my own party will argue that we cannot address the deficit or freeze government spending when so many are still hurting.  I agree, which is why this freeze will not take effect until next year, when the economy is stronger.  But understand - if we do not take meaningful steps to rein in our debt, it could damage our markets, increase the cost of borrowing, and jeopardize our recovery - all of which could have an even worse effect on our job growth and family incomes.
 
From some on the right, I expect we'll hear a different argument - that if we just make fewer investments in our people, extend tax cuts for wealthier Americans, eliminate more regulations, and maintain the status quo on health care, our deficits will go away.  The problem is, that's what we did for eight years. That's what helped lead us into this crisis.  It's what helped lead to these deficits.  And we cannot do it again.
 
Rather than fight the same tired battles that have dominated Washington for decades, it's time to try something new.  Let's invest in our people without leaving them a mountain of debt. Let's meet our responsibility to the citizens who sent us here.  Let's try common sense.
 
To do that, we have to recognize that we face more than a deficit of dollars right now. We face a deficit of trust - deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap we must take action on both ends of Pennsylvania Avenue to end the outsized influence of lobbyists; to do our work openly; and to give our people the government they deserve.
 
That's what I came to Washington to do. That's why - for the first time in history - my Administration posts our White House visitors online. And that's why we've excluded lobbyists from policy-making jobs or seats on federal boards and commissions.
 
But we can't stop there. It's time to require lobbyists to disclose each contact they make on behalf of a client with my Administration or Congress.  And it's time to put strict limits on the contributions that lobbyists give to candidates for federal office. Last week, the Supreme Court reversed a century of law to open the floodgates for special interests - including foreign corporations - to spend without limit in our elections. Well I don't think American elections should be bankrolled by America's most powerful interests, or worse, by foreign entities.  They should be decided by the American people, and that's why I'm urging Democrats and Republicans to pass a bill that helps to right this wrong.
 
I'm also calling on Congress to continue down the path of earmark reform. You have trimmed some of this spending and embraced some meaningful change.  But restoring the public trust demands more. For example, some members of Congress post some earmark requests online. Tonight, I'm calling on Congress to publish all earmark requests on a single website before there's a vote so that the American people can see how their money is being spent.
 
Of course, none of these reforms will even happen if we don't also reform how we work with one another.
 
Now, I am not naïve.  I never thought the mere fact of my election would usher in peace, harmony, and some post-partisan era.  I knew that both parties have fed divisions that are deeply entrenched.   And on some issues, there are simply philosophical differences that will always cause us to part ways.  These disagreements, about the role of government in our lives, about our national priorities and our national security, have been taking place for over two hundred years.  They are the very essence of our democracy.
 
But what frustrates the American people is a Washington where every day is Election Day.  We cannot wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about their opponent - a belief that if you lose, I win.  Neither party should delay or obstruct every single bill just because they can.  The confirmation of well-qualified public servants should not be held hostage to the pet projects or grudges of a few individual Senators.  Washington may think that saying anything about the other side, no matter how false, is just part of the game.  But it is precisely such politics that has stopped either party from helping the American people.  Worse yet, it is sowing further division among our citizens and further distrust in our government.
 
So no, I will not give up on changing the tone of our politics.  I know it's an election year.  And after last week, it is clear that campaign fever has come even earlier than usual.  But we still need to govern.  To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve some problems, not run for the hills.  And if the Republican leadership is going to insist that sixty votes in the Senate are required to do any business at all in this town, then the responsibility to govern is now yours as well.  Just saying no to everything may be good short-term politics, but it's not leadership.  We were sent here to serve our citizens, not our ambitions. So let's show the American people that we can do it together.  This week, I'll be addressing a meeting of the House Republicans.  And I would like to begin monthly meetings with both the Democratic and Republican leadership.  I know you can't wait.
 
Throughout our history, no issue has united this country more than our security. Sadly, some of the unity we felt after 9/11 has dissipated.  We can argue all we want about who's to blame for this, but I am not interested in re-litigating the past.  I know that all of us love this country. All of us are committed to its defense. So let's put aside the schoolyard taunts about who is tough.  Let's reject the false choice between protecting our people and upholding our values.  Let's leave behind the fear and division, and do what it takes to defend our nation and forge a more hopeful future - for America and the world.
 
That is the work we began last year.  Since the day I took office, we have renewed our focus on the terrorists who threaten our nation.  We have made substantial investments in our homeland security and disrupted plots that threatened to take American lives. We are filling unacceptable gaps revealed by the failed Christmas attack, with better airline security, and swifter action on our intelligence. We have prohibited torture and strengthened partnerships from the Pacific to South Asia to the Arabian Peninsula.  And in the last year, hundreds of Al Qaeda's fighters and affiliates, including many senior leaders, have been captured or killed - far more than in 2008.
 
In Afghanistan, we are increasing our troops and training Afghan Security Forces so they can begin to take the lead in July of 2011, and our troops can begin to come home. We will reward good governance, reduce corruption, and support the rights of all Afghans - men and women alike. We are joined by allies and partners who have increased their own commitment, and who will come together tomorrow in London to reaffirm our common purpose. There will be difficult days ahead. But I am confident we will succeed.
 
As we take the fight to al Qaeda, we are responsibly leaving Iraq to its people. As a candidate, I promised that I would end this war, and that is what I am doing as President.  We will have all of our combat troops out of Iraq by the end of this August. We will support the Iraqi government as they hold elections, and continue to partner with the Iraqi people to promote regional peace and prosperity. But make no mistake:  this war is ending, and all of our troops are coming home.
 
Tonight, all of our men and women in uniform -- in Iraq, Afghanistan, and around the world - must know that they have our respect, our gratitude, and our full support. And just as they must have the resources they need in war, we all have a responsibility to support them when they come home. That is why we made the largest increase in investments for veterans in decades. That is why we are building a 21st century VA. And that is why Michelle has joined with Jill Biden to forge a national commitment to support military families.

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