Every time I'm invited to this rostrum, I'm humbled by the privilege, and mindful of the history we've seen together. We have gathered under this Capitol dome in moments of national mourning and national achievement. We have served America through one of the most consequential periods of our history -- and it has been my honor to serve with you.

In a system of two parties, two chambers, and two elected branches, there will always be differences and debate. But even tough debates can be conducted in a civil tone, and our differences cannot be allowed to harden into anger. To confront the great issues before us, we must act in a spirit of goodwill and respect for one another -- and I will do my part. Tonight the state of our Union is strong -- and together we will make it stronger.

(Applause.)

In this decisive year, you and I will make choices that determine both the future and the character of our country. We will choose to act confidently in pursuing the enemies of freedom -- or retreat from our duties in the hope of an easier life. We will choose to build our prosperity by leading the world economy -- or shut ourselves off from trade and opportunity. In a complex and challenging time, the road of isolationism and protectionism may seem broad and inviting -- yet it ends in danger and decline. The only way to protect our people, the only way to secure the peace, the only way to control our destiny is by our leadership -- so the United States of America will continue to lead. (Applause.)

Abroad, our nation is committed to an historic, long-term goal -- we seek the end of tyranny in our world. Some dismiss that goal as misguided idealism. In reality, the future security of America depends on it. On September the 11th, 2001, we found that problems originating in a failed and oppressive state 7,000 miles away could bring murder and destruction to our country. Dictatorships shelter terrorists, and feed resentment and radicalism, and seek weapons of mass destruction. Democracies replace resentment with hope, respect the rights of their citizens and their neighbors, and join the fight against terror. Every step toward freedom in the world makes our country safer -- so we will act boldly in freedom's cause. (Applause.)

Far from being a hopeless dream, the advance of freedom is the great story of our time. In 1945, there were about two dozen lonely democracies in the world. Today, there are 122. And we're writing a new chapter in the story of self-government -- with women lining up to vote in Afghanistan, and millions of Iraqis marking their liberty with purple ink, and men and women from Lebanon to Egypt debating the rights of individuals and the necessity of freedom. At the start of 2006, more than half the people of our world live in democratic nations. And we do not forget the other half -- in places like Syria and Burma, Zimbabwe, North Korea, and Iran -- because the demands of justice, and the peace of this world, require their freedom, as well. (Applause.)

No one can deny the success of freedom, but some men rage and fight

against it. And one of the main sources of reaction and opposition is

radical Islam -- the perversion by a few of a noble faith into an ideology of terror and death. Terrorists like bin Laden are serious about mass murder -- and all of us must take their declared intentions seriously. They seek to impose a heartless system of totalitarian control throughout the Middle East, and arm themselves with weapons of mass murder.

Their aim is to seize power in Iraq, and use it as a safe haven to launch attacks against America and the world. Lacking the military strength to challenge us directly, the terrorists have chosen the weapon of fear.

When they murder children at a school in Beslan, or blow up commuters in London, or behead a bound captive, the terrorists hope these horrors will break our will, allowing the violent to inherit the Earth. But they have

miscalculated: We love our freedom, and we will fight to keep it.

(Applause.)

In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders. If we were to leave these vicious attackers alone, they would not leave us alone. They would simply move the battlefield to our own shores. There is no peace in retreat. And there is no honor in retreat. By allowing radical Islam to work its will

-- by leaving an assaulted world to fend for itself -- we would signal to all that we no longer believe in our own ideals, or even in our own courage.

But our enemies and our friends can be certain: The United States will not retreat from the world, and we will never surrender to evil. (Applause.)

America rejects the false comfort of isolationism. We are the nation that saved liberty in Europe, and liberated death camps, and helped raise up democracies, and faced down an evil empire. Once again, we accept the call of history to deliver the oppressed and move this world toward peace. We remain on the offensive against terror networks. We have killed or captured many of their leaders -- and for the others, their day will come.

We remain on the offensive in Afghanistan, where a fine President and a National Assembly are fighting terror while building the institutions of a new democracy. We're on the offensive in Iraq, with a clear plan for victory. First, we're helping Iraqis build an inclusive government, so that old resentments will be eased and the insurgency will be marginalized.

Second, we're continuing reconstruction efforts, and helping the Iraqi government to fight corruption and build a modern economy, so all Iraqis can experience the benefits of freedom. And, third, we're striking terrorist targets while we train Iraqi forces that are increasingly capable of defeating the enemy. Iraqis are showing their courage every day, and we are proud to be their allies in the cause of freedom. (Applause.)

Our work in Iraq is difficult because our enemy is brutal. But that brutality has not stopped the dramatic progress of a new democracy. In less than three years, the nation has gone from dictatorship to liberation, to sovereignty, to a constitution, to national elections. At the same time, our coalition has been relentless in shutting off terrorist infiltration, clearing out insurgent strongholds, and turning over territory to Iraqi security forces. I am confident in our plan for victory; I am confident in the will of the Iraqi people; I am confident in the skill and spirit of our military. Fellow citizens, we are in this fight to win, and we are winning.

(Applause.)

The road of victory is the road that will take our troops home. As we make progress on the ground, and Iraqi forces increasingly take the lead, we should be able to further decrease our troop levels -- but those decisions will be made by our military commanders, not by politicians in Washington, D.C. (Applause.)

Our coalition has learned from our experience in Iraq. We've adjusted our military tactics and changed our approach to reconstruction. Along the way, we have benefitted from responsible criticism and counsel offered by members of Congress of both parties. In the coming year, I will continue to reach out and seek your good advice. Yet, there is a difference between responsible criticism that aims for success, and defeatism that refuses to acknowledge anything but failure. (Applause.) Hindsight alone is not wisdom, and second-guessing is not a strategy. (Applause.)

With so much in the balance, those of us in public office have a duty to speak with candor. A sudden withdrawal of our forces from Iraq would abandon our Iraqi allies to death and prison, would put men like bin Laden and Zarqawi in charge of a strategic country, and show that a pledge from America means little. Members of Congress, however we feel about the decisions and debates of the past, our nation has only one option: We must keep our word, defeat our enemies, and stand behind the American military in this vital mission. (Applause.)

Our men and women in uniform are making sacrifices -- and showing a sense of duty stronger than all fear. They know what it's like to fight house to house in a maze of streets, to wear heavy gear in the desert heat, to see a comrade killed by a roadside bomb. And those who know the costs also know the stakes. Marine Staff Sergeant Dan Clay was killed last month fighting in Fallujah. He left behind a letter to his family, but his words could just as well be addressed to every American. Here is what Dan wrote:

"I know what honor is. & It has been an honor to protect and serve all of you. I faced death with the secure knowledge that you would not have to& .

Never falter! Don't hesitate to honor and support those of us who have the honor of protecting that which is worth protecting."

Staff Sergeant Dan Clay's wife, Lisa, and his mom and dad, Sara Jo and Bud, are with us this evening. Welcome. (Applause.)

Our nation is grateful to the fallen, who live in the memory of our country. We're grateful to all who volunteer to wear our nation's uniform

-- and as we honor our brave troops, let us never forget the sacrifices of America's military families. (Applause.)

Our offensive against terror involves more than military action.

Ultimately, the only way to defeat the terrorists is to defeat their dark vision of hatred and fear by offering the hopeful alternative of political freedom and peaceful change. So the United States of America supports democratic reform across the broader Middle East. Elections are vital, but they are only the beginning. Raising up a democracy requires the rule of law, and protection of minorities, and strong, accountable institutions that last longer than a single vote.

The great people of Egypt have voted in a multi-party presidential election -- and now their government should open paths of peaceful opposition that will reduce the appeal of radicalism. The Palestinian people have voted in elections. And now the leaders of Hamas must recognize Israel, disarm, reject terrorism, and work for lasting peace. (Applause.) Saudi Arabia has taken the first steps of reform -- now it can offer its people a better future by pressing forward with those efforts. Democracies in the Middle East will not look like our own, because they will reflect the traditions of their own citizens. Yet liberty is the future of every nation in the Middle East, because liberty is the right and hope of all humanity.

(Applause.)

The same is true of Iran, a nation now held hostage by a small clerical elite that is isolating and repressing its people. The regime in that country sponsors terrorists in the Palestinian territories and in Lebanon -- and that must come to an end. (Applause.) The Iranian government is defying the world with its nuclear ambitions, and the nations of the world must not permit the Iranian regime to gain nuclear weapons. (Applause.) America will continue to rally the world to confront these threats.

Tonight, let me speak directly to the citizens of Iran: America respects you, and we respect your country. We respect your right to choose your own future and win your own freedom. And our nation hopes one day to be the closest of friends with a free and democratic Iran. (Applause.)

To overcome dangers in our world, we must also take the offensive by encouraging economic progress, and fighting disease, and spreading hope in hopeless lands. Isolationism would not only tie our hands in fighting enemies, it would keep us from helping our friends in desperate need. We show compassion abroad because Americans believe in the God-given dignity and worth of a villager with HIV/AIDS, or an infant with malaria, or a refugee fleeing genocide, or a young girl sold into slavery. We also show compassion abroad because regions overwhelmed by poverty, corruption, and despair are sources of terrorism, and organized crime, and human trafficking, and the drug trade.

In recent years, you and I have taken unprecedented action to fight AIDS and malaria, expand the education of girls, and reward developing nations that are moving forward with economic and political reform. For people everywhere, the United States is a partner for a better life.

Short-changing these efforts would increase the suffering and chaos of our world, undercut our long-term security, and dull the conscience of our country. I urge members of Congress to serve the interests of America by showing the compassion of America.

Our country must also remain on the offensive against terrorism here at home. The enemy has not lost the desire or capability to attack us.

Fortunately, this nation has superb professionals in law enforcement, intelligence, the military, and homeland security. These men and women are dedicating their lives, protecting us all, and they deserve our support and our thanks. (Applause.) They also deserve the same tools they already use to fight drug trafficking and organized crime -- so I ask you to reauthorize the Patriot Act. (Applause.)

It is said that prior to the attacks of September the 11th, our government failed to connect the dots of the conspiracy. We now know that two of the hijackers in the United States placed telephone calls to al Qaeda operatives overseas. But we did not know about their plans until it was too late. So to prevent another attack  - based on authority given to me by the Constitution and by statute -- I have authorized a terrorist surveillance program to aggressively pursue the international communications of suspected al Qaeda operatives and affiliates to and from America. Previous Presidents have used the same constitutional authority I have, and federal courts have approved the use of that authority. Appropriate members of Congress have been kept informed. The terrorist surveillance program has helped prevent terrorist attacks. It remains essential to the security of America. If there are people inside our country who are talking with al Qaeda, we want to know about it, because we will not sit back and wait to be hit again.

(Applause.)

In all these areas -- from the disruption of terror networks, to victory in Iraq, to the spread of freedom and hope in troubled regions -- we need the support of our friends and allies. To draw that support, we must always be clear in our principles and willing to act. The only alternative to American leadership is a dramatically more dangerous and anxious world.

Yet we also choose to lead because it is a privilege to serve the values that gave us birth. American leaders -- from Roosevelt to Truman to Kennedy to Reagan -- rejected isolation and retreat, because they knew that America is always more secure when freedom is on the march.

Our own generation is in a long war against a determined enemy -- a war that will be fought by Presidents of both parties, who will need steady bipartisan support from the Congress. And tonight I ask for yours.

Together, let us protect our country, support the men and women who defend us, and lead this world toward freedom. (Applause.)

Here at home, America also has a great opportunity: We will build the prosperity of our country by strengthening our economic leadership in the world.

Our economy is healthy and vigorous, and growing faster than other major industrialized nations. In the last two-and-a-half years, America has created 4.6 million new jobs -- more than Japan and the European Union combined. (Applause.) Even in the face of higher energy prices and natural disasters, the American people have turned in an economic performance that is the envy of the world.

The American economy is preeminent, but we cannot afford to be complacent. In a dynamic world economy, we are seeing new competitors, like China and India, and this creates uncertainty, which makes it easier to feed people's fears. So we're seeing some old temptations return.

Protectionists want to escape competition, pretending that we can keep our high standard of living while walling off our economy. Others say that the government needs to take a larger role in directing the economy, centralizing more power in Washington and increasing taxes. We hear claims that immigrants are somehow bad for the economy -- even though this economy could not function without them. (Applause.) All these are forms of economic retreat, and they lead in the same direction -- toward a stagnant and second-rate economy.

Tonight I will set out a better path: an agenda for a nation that competes with confidence; an agenda that will raise standards of living and generate new jobs. Americans should not fear our economic future, because we intend to shape it.

Keeping America competitive begins with keeping our economy growing.

And our economy grows when Americans have more of their own money to spend, save, and invest. In the last five years, the tax relief you passed has left $880 billion in the hands of American workers, investors, small businesses, and families -- and they have used it to help produce more than four years of uninterrupted economic growth. (Applause.) Yet the tax relief is set to expire in the next few years. If we do nothing, American families will face a massive tax increase they do not expect and will not welcome.

Because America needs more than a temporary expansion, we need more than temporary tax relief. I urge the Congress to act responsibly, and make the tax cuts permanent. (Applause.)

Keeping America competitive requires us to be good stewards of tax dollars. Every year of my presidency, we've reduced the growth of non-security discretionary spending, and last year you passed bills that cut this spending. This year my budget will cut it again, and reduce or eliminate more than 140 programs that are performing poorly or not fulfilling essential priorities. By passing these reforms, we will save the American taxpayer another $14 billion next year, and stay on track to cut the deficit in half by 2009. (Applause.)

I am pleased that members of Congress are working on earmark reform, because the federal budget has too many special interest projects.

(Applause.) And we can tackle this problem together, if you pass the line-item veto. (Applause.)

We must also confront the larger challenge of mandatory spending, or entitlements. This year, the first of about 78 million baby boomers turn 60, including two of my Dad's favorite people -- me and President Clinton.

(Laughter.) This milestone is more than a personal crisis -- (laughter) -- it is a national challenge. The retirement of the baby boom generation will put unprecedented strains on the federal government. By 2030, spending for Social Security, Medicare and Medicaid alone will be almost 60 percent of the entire federal budget. And that will present future Congresses with impossible choices -- staggering tax increases, immense deficits, or deep cuts in every category of spending.

Congress did not act last year on my proposal to save Social Security --

(applause) -- yet the rising cost of entitlements is a problem that is not going away. (Applause.) And every year we fail to act, the situation gets worse.

So tonight, I ask you to join me in creating a commission to examine the full impact of baby boom retirements on Social Security, Medicare, and Medicaid. This commission should include members of Congress of both parties, and offer bipartisan solutions. We need to put aside partisan politics and work together and get this problem solved. (Applause.)

Keeping America competitive requires us to open more markets for all that Americans make and grow. One out of every five factory jobs in America is related to global trade, and we want people everywhere to buy American.

With open markets and a level playing field, no one can out-produce or out-compete the American worker. (Applause.)

Keeping America competitive requires an immigration system that upholds our laws, reflects our values, and serves the interests of our economy. Our nation needs orderly and secure borders. (Applause.) To meet this goal, we must have stronger immigration enforcement and border protection.

(Applause.) And we must have a rational, humane guest worker program that rejects amnesty, allows temporary jobs for people who seek them legally, and reduces smuggling and crime at the border. (Applause.)

Keeping America competitive requires affordable health care.

(Applause.) Our government has a responsibility to provide health care for the poor and the elderly, and we are meeting that responsibility.

(Applause.) For all Americans -- for all Americans, we must confront the rising cost of care, strengthen the doctor-patient relationship, and help people afford the insurance coverage they need. (Applause.)

We will make wider use of electronic records and other health information technology, to help control costs and reduce dangerous medical errors. We will strengthen health savings accounts -- making sure individuals and small business employees can buy insurance with the same advantages that people working for big businesses now get. (Applause.) We will do more to make this coverage portable, so workers can switch jobs without having to worry about losing their health insurance. (Applause.) And because lawsuits are driving many good doctors out of practice -- leaving women in nearly 1,500 American counties without a single OB/GYN -- I ask the Congress to pass medical liability reform this year. (Applause.)

Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper, and more reliable alternative energy sources -- and we are on the threshold of incredible advances.

So tonight, I announce the Advanced Energy Initiative -- a 22-percent increase in clean-energy research -- at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy.

(Applause.)

We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We'll also fund additional research in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years. (Applause.)

Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. (Applause.) By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past. (Applause.)

And to keep America competitive, one commitment is necessary above all:

We must continue to lead the world in human talent and creativity. Our greatest advantage in the world has always been our educated, hardworking, ambitious people -- and we're going to keep that edge. Tonight I announce an American Competitiveness Initiative, to encourage innovation throughout our economy, and to give our nation's children a firm grounding in math and science. (Applause.)

First, I propose to double the federal commitment to the most critical basic research programs in the physical sciences over the next 10 years.

This funding will support the work of America's most creative minds as they explore promising areas such as nanotechnology, supercomputing, and alternative energy sources.

Second, I propose to make permanent the research and development tax credit -- (applause) -- to encourage bolder private-sector initiatives in technology. With more research in both the public and private sectors, we will improve our quality of life -- and ensure that America will lead the world in opportunity and innovation for decades to come. (Applause.)

Third, we need to encourage children to take more math and science, and to make sure those courses are rigorous enough to compete with other nations. We've made a good start in the early grades with the No Child Left Behind Act, which is raising standards and lifting test scores across our country. Tonight I propose to train 70,000 high school teachers to lead advanced-placement courses in math and science, bring 30,000 math and science professionals to teach in classrooms, and give early help to students who struggle with math, so they have a better chance at good, high-wage jobs. If we ensure that America's children succeed in life, they will ensure that America succeeds in the world. (Applause.)

Preparing our nation to compete in the world is a goal that all of us can share. I urge you to support the American Competitiveness Initiative, and together we will show the world what the American people can achieve.

America is a great force for freedom and prosperity. Yet our greatness is not measured in power or luxuries, but by who we are and how we treat one another. So we strive to be a compassionate, decent, hopeful society.

In recent years, America has become a more hopeful nation. Violent crime rates have fallen to their lowest levels since the 1970s. Welfare cases have dropped by more than half over the past decade. Drug use among youth is down 19 percent since 2001. There are fewer abortions in America than at any point in the last three decades, and the number of children born to teenage mothers has been falling for a dozen years in a row. (Applause.)

These gains are evidence of a quiet transformation -- a revolution of conscience, in which a rising generation is finding that a life of personal responsibility is a life of fulfillment. Government has played a role.

Wise policies, such as welfare reform and drug education and support for abstinence and adoption have made a difference in the character of our country. And everyone here tonight, Democrat and Republican, has a right to be proud of this record. (Applause.)

Yet many Americans, especially parents, still have deep concerns about the direction of our culture, and the health of our most basic institutions.

They're concerned about unethical conduct by public officials, and discouraged by activist courts that try to redefine marriage. They worry about children in our society who need direction and love, and about fellow citizens still displaced by natural disaster, and about suffering caused by treatable diseases.

As we look at these challenges, we must never give in to the belief that America is in decline, or that our culture is doomed to unravel. The American people know better than that. We have proven the pessimists wrong before -- and we will do it again. (Applause.)

A hopeful society depends on courts that deliver equal justice under the law. The Supreme Court now has two superb new members -- new members on its bench: Chief Justice John Roberts and Justice Sam Alito. (Applause.) I thank the Senate for confirming both of them. I will continue to nominate men and women who understand that judges must be servants of the law, and not legislate from the bench. (Applause.)

Today marks the official retirement of a very special American. For 24 years of faithful service to our nation, the United States is grateful to Justice Sandra Day O'Connor. (Applause.)

A hopeful society has institutions of science and medicine that do not cut ethical corners, and that recognize the matchless value of every life.

Tonight I ask you to pass legislation to prohibit the most egregious abuses of medical research: human cloning in all its forms, creating or implanting embryos for experiments, creating human-animal hybrids, and buying, selling, or patenting human embryos. Human life is a gift from our Creator -- and that gift should never be discarded, devalued or put up for sale.

(Applause.)

A hopeful society expects elected officials to uphold the public trust.

(Applause.) Honorable people in both parties are working on reforms to strengthen the ethical standards of Washington -- I support your efforts.

Each of us has made a pledge to be worthy of public responsibility -- and that is a pledge we must never forget, never dismiss, and never betray.

(Applause.)

As we renew the promise of our institutions, let us also show the character of America in our compassion and care for one another.

A hopeful society gives special attention to children who lack direction and love. Through the Helping America's Youth Initiative, we are encouraging caring adults to get involved in the life of a child -- and this good work is being led by our First Lady, Laura Bush. (Applause.) This year we will add resources to encourage young people to stay in school, so more of America's youth can raise their sights and achieve their dreams.

A hopeful society comes to the aid of fellow citizens in times of suffering and emergency -- and stays at it until they're back on their feet.

So far the federal government has committed $85 billion to the people of the Gulf Coast and New Orleans. We're removing debris and repairing highways and rebuilding stronger levees. We're providing business loans and housing assistance. Yet as we meet these immediate needs, we must also address deeper challenges that existed before the storm arrived.

In New Orleans and in other places, many of our fellow citizens have felt excluded from the promise of our country. The answer is not only temporary relief, but schools that teach every child, and job skills that bring upward mobility, and more opportunities to own a home and start a business. As we recover from a disaster, let us also work for the day when all Americans are protected by justice, equal in hope, and rich in opportunity. (Applause.)

A hopeful society acts boldly to fight diseases like HIV/AIDS, which can be prevented, and treated, and defeated. More than a million Americans live with HIV, and half of all AIDS cases occur among African Americans. I ask Congress to reform and reauthorize the Ryan White Act, and provide new funding to states, so we end the waiting lists for AIDS medicines in America. (Applause.) We will also lead a nationwide effort, working closely with African American churches and faith-based groups, to deliver rapid HIV tests to millions, end the stigma of AIDS, and come closer to the day when there are no new infections in America. (Applause.)

Fellow citizens, we've been called to leadership in a period of consequence. We've entered a great ideological conflict we did nothing to invite. We see great changes in science and commerce that will influence all our lives. Sometimes it can seem that history is turning in a wide arc, toward an unknown shore. Yet the destination of history is determined by human action, and every great movement of history comes to a point of choosing.

Lincoln could have accepted peace at the cost of disunity and continued slavery. Martin Luther King could have stopped at Birmingham or at Selma, and achieved only half a victory over segregation. The United States could have accepted the permanent division of Europe, and been complicit in the oppression of others. Today, having come far in our own historical journey, we must decide: Will we turn back, or finish well?

Before history is written down in books, it is written in courage.

Like Americans before us, we will show that courage and we will finish well.

We will lead freedom's advance. We will compete and excel in the global economy. We will renew the defining moral commitments of this land. And so we move forward -- optimistic about our country, faithful to its cause, and confident of the victories to come.

May God bless America. (Applause.)

State of the Union: A Strong America Leading the World

In His State Of The Union Address, President Bush Discussed America's Leadership In The World And Shared His Vision To Lead America Forward. At a time of great consequence, the President laid out an agenda of leadership to act confidently in pursuing the enemies of freedom and to build our prosperity by leading the world economy. The President rejected the roads of isolationism and protectionism and called for cooperation and courage in confronting challenges. America will lead freedom's advance, compete and excel in the global economy, and renew the defining moral commitments of this land, confident of victory.

Leadership Toward Peace In The World

Every Step Toward Freedom In The World Makes Our Country Safer, And So America Will Act Boldly In Freedom's Cause. Today our Nation is committed to an historic, long-term goal: the end of tyranny in our world. On September 11th, 2001, America found that problems originating in a failed and oppressive state seven thousand miles away could bring murder and destruction to our country. Dictatorships shelter terrorists, feed resentment and radicalism, and seek weapons of mass destruction. Democracies replace resentment with hope, respect the rights of their citizens and their neighbors, and join the fight against terror. As we celebrate the spread of freedom in places like Afghanistan and Iraq, we do not forget people living in places like Syria, Burma, Zimbabwe, North Korea, and Iran – because the demands of justice, and the peace of this world, require their freedom as well.

• America Will Not Retreat From The World Or Surrender To Evil. In a time of testing, America cannot find security by abandoning commitments and retreating to isolation within our borders. If we were to leave the terrorists alone, they would not leave us alone. They would simply move the battlefield to our own shores. There is no peace or honor in retreat. America rejects the false comfort of isolationism. We accept the call of history to deliver the oppressed and move the world toward peace.

America Is On The Offensive In The War On Terror. America and its allies have killed or captured many of the leaders of the terror networks. For the others, their day will come.

• We Remain On The Offensive In Afghanistan. In that country, a fine president and National Assembly are fighting terror while building the institutions of a new democracy.
  
  
• America Is On The Offensive In Iraq, With A Clear Plan For Victory. First, the Coalition is helping Iraqis build an inclusive government, so that old resentments will be eased and the insurgency will be marginalized. Second, the Coalition is continuing reconstruction efforts and helping the Iraqi government fight corruption and build a modern economy. Third, Coalition forces are striking terrorist targets and training Iraqi forces. In less than three years, Iraq has gone from dictatorship, to liberation, to sovereignty, to a constitution, to national elections.
  
  
• The Brutality Of The Terrorists Cannot Stop The Dramatic Progress Of A New Democracy. The Coalition has been relentless in shutting off terrorist infiltration, clearing out insurgent strongholds, and turning over territory to Iraqi security forces. As we make progress on the ground, and Iraqi forces increasingly take the lead, we should be able to further decrease our troop levels, but those decisions will be made by our military commanders, not by politicians in Washington, D.C.
  
  
• Our Strategy For Victory In Iraq Benefits From Responsible Criticism And Counsel. The effort in Iraq has benefited from responsible criticism and counsel offered by Members of Congress of both parties. The President will continue to reach out and seek good advice. Yet there is a difference between responsible criticism that aims for success and defeatism that refuses to acknowledge anything but failure. However individuals feel about the decisions and debates of the past, our Nation has only one option: We must keep our word, defeat our enemies, and stand behind the men and women of America's military in their vital mission.

Progress Will Continue Across The Middle East As America Offers A Hopeful Alternative To Hatred And Fear. America's offensive against terror involves more than military action, and we are delivering a clear message across the broader Middle East. In parts of the Middle East, there have been steps taken toward reform, but there is more progress to be made. Elections are vital – but they are only the beginning. Raising up a democracy requires the rule of law, protection of minorities, and strong, accountable institutions that last longer than a single vote. The Palestinian people have voted in elections – now the leaders of Hamas must recognize Israel, disarm, reject terrorism and work for a lasting peace. Elsewhere in the Middle East, the repressive regime in Iran is defying the world with its nuclear ambitions, and the nations of the world must not permit the Iranian regime to gain nuclear weapons.

• As America Encourages The Spread Of Freedom, We Must Also Spread Prosperity. To overcome dangers in our world, America will encourage economic progress, fight disease, and spread hope in hopeless lands. Isolationism would not only tie our hands in fighting enemies, it would keep America from helping our friends in desperate need. America has taken unprecedented action to fight AIDS and malaria, expand the education of girls, and reward developing nations moving forward with economic and political reform. Short-changing these efforts would increase the suffering and chaos of the world, undercut America's long-term security, and dull the conscience of our country.

The Offensive Against Terrorism Must Continue At Home. The enemy has not lost the desire or capability to attack us. America has superb professionals in law enforcement, intelligence, the military, and homeland security who are protecting America. They deserve our thanks – and they deserve the same tools they already use to fight drug trafficking and organized crime, so the President called on Congress to reauthorize the Patriot Act.

Winning The War on Terror Requires Learning The Lessons of September 11th. To prevent another attack – based on authority given to the President by the Constitution and by statute – the President has authorized a terrorist surveillance program to aggressively pursue the international communications of suspected al-Qaida operatives and affiliates to and from America. Previous presidents have used the same constitutional authority the President has – and Federal courts have approved the use of that authority. Appropriate Members of Congress have been kept informed. This terrorist surveillance program has helped prevent terrorist attacks. It remains essential to the security of America. If there are people inside our country who are talking with al-Qaida, we want to know about it – because we will not sit back and wait to be hit again.

Leadership For Prosperity At Home And Abroad

America's Economic Strength Continues To Lead The World. The American economy is healthy and vigorous and growing faster than other major industrialized nations. In the last two and a half years, America has created 4.6 million new jobs – more than Japan and the European Union combined. Even in the face of higher energy prices and natural disasters, the American people have turned in an economic performance that is the envy of the world.

Our Nation Will Compete With Confidence And Extend Our Economic Leadership In The World. In a dynamic world economy, we are seeing new competitors. This creates uncertainty, which makes it easier to feed people's fears. Protectionists want to escape competition, while others want the government to take a larger role in directing the economy. The President set forth a better path that will raise standards of living and generate new jobs. Americans should not fear our economic future, because we intend to shape it.

Congress Needs To Make The Tax Cuts Permanent. Keeping America competitive begins with keeping our economy growing. Our economy grows when Americans have more of their own money to spend, save, and invest. In the last five years, tax relief has left $880 billion in the hands of American workers, investors, small businesses, and families, and they have used it to help produce more than four years of uninterrupted economic growth. Yet the tax relief is set to expire in the next few years. If Congress does not act, American families will face a massive tax increase.

The Growth Of Government Must Be Limited Through Fiscal Discipline. Every year since President Bush took office, the growth of non-security discretionary spending has been reduced, and last year this spending was cut. This year the President's budget will cut it again and will reduce or eliminate more than 140 programs that are performing poorly or not fulfilling essential priorities. By passing these reforms, we will save the American taxpayer another $14 billion next year and stay on track to cut the deficit in half by 2009. Congress must also move forward on earmark reform and pass the line-item veto to limit special interest projects.

• The Government Must Confront The Larger Challenge Of Entitlement Spending. The coming retirement of the Baby Boom generation will put unprecedented strains on the Federal government. By 2030, spending for Social Security, Medicare, and Medicaid alone will be almost 60 percent of the entire Federal budget. And that will present future Congresses with impossible choices: staggering tax increases, immense deficits, or deep cuts in every category of spending. The President proposed a bipartisan commission to examine the impact of this problem.

America Must Continue To Open Markets For American Goods. One out of every five factory jobs in America is related to global trade, and we want people everywhere to buy American. With open markets and a level playing field, no one can out-produce or out-compete the American worker.

Immigration Reform Must Be A Priority. America needs an immigration system that upholds our laws, reflects our values, and serves the interests of our economy. Our nation needs orderly and secure borders. To meet this goal, we must have stronger immigration enforcement and border protection. And we must have a rational, humane guest worker program that rejects amnesty, allows temporary jobs for people who seek them legally, and reduces smuggling and crime at the border.

Health Care Must Be Made Affordable And Accessible. Our government has a responsibility to help provide health care for the poor and the elderly, and it will meet that responsibility. For all Americans, we must confront the rising cost of care, strengthen the doctor-patient relationship, and help people afford the insurance coverage they need.

• Improved Health Savings Accounts Will Offer Lower Costs And Security Between Jobs. The President proposed strengthening Health Savings Accounts by making sure individuals and small business employees can buy insurance with the same tax advantages that people working for big businesses now get. We will do more to make this coverage portable, so workers can switch jobs without having to worry about losing their health insurance.
  
  
• Technology Offers The Possibility Of More Effective, Less Expensive Health Care. The President called for wider use of electronic records and other health information technology to help control costs and reduce medical errors.
  
  
• Medical Liability Reform Will Help Retain Good Doctors. The President called on Congress to pass Medical Liability Reform this year. Lawsuits are driving many good doctors out of practice, leaving women in nearly 1500 American counties without a single OB-GYN.

The Advanced Energy Initiative Will Help Break America's Dependence On Foreign Sources Of Energy. The best way to break America’s addiction to oil is through technology. The President set a goal of replacing more than 75 percent of oil imports from the Middle East by 2025. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper, more reliable alternative energy sources. The Advanced Energy Initiative will deliver a 22 percent increase in clean-energy research to push for breakthroughs in two vital areas:

• New Energy Sources For Homes And Businesses. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants; revolutionary solar and wind technologies; and clean, safe nuclear energy.
  
  
• New Energy Sources For Transportation. We must also change how we power our automobiles and move beyond a petroleum-based economy. We will increase our research in better batteries for hybrid and electric cars and in pollution-free cars that run on hydrogen. We will also fund additional research in cutting-edge methods of producing ethanol, not just from corn but from wood chips, stalks, or switch grass. The goal is to make this new kind of ethanol practical and competitive within six years.

The President's American Competitiveness Initiative Will Encourage Innovation Throughout The Economy. America must continue to lead the world in human talent and creativity. Our greatest advantage in the world has always been our educated, hard-working, ambitious people, and we are going to keep that edge.

• New Federal Funding For Research. The President proposed doubling the Federal commitment to the most critical basic research in the physical sciences over the next ten years. This will support the work of America's most creative minds as they explore promising areas such as nanotechnology, supercomputing, and alternative energy sources.
  
  
• Provide Tax Certainty For Research And Development. The President proposed making permanent the research and development tax credit to encourage bolder private-sector investment in technology. With more research in both the public and private sectors, we will improve our quality of life and ensure that America will lead the world in opportunity and innovation for decades to come.
  
  
• Strengthening Education In Math And Science. Building on the success of the No Child Left Behind Act, the President proposed training 70,000 high school teachers to lead advanced-placement courses in math and science; bringing 30,000 math and science professionals to teach in classrooms; and getting early help to students struggling with math so they have a better chance at good, high-wage jobs.

America Is Becoming A More Hopeful Nation. Violent crime rates have fallen to their lowest levels since the 1970s. Welfare cases have dropped by more than half over the past decade. Drug abuse among youth is down 19 percent since 2001. There are fewer abortions in America than at any point in the last three decades, and the number of children born to teenage mothers has been falling for a dozen years in a row. Government has played a role in this quiet transformation, and wise policies such as welfare reform, drug education, and support for abstinence and adoption have made a difference in the character of our country.

America Still Has More To Do To Strengthen Our Culture And Our Institutions. Many Americans, especially parents, still have deep concerns about the direction of our culture and the health of our most basic institutions. They are concerned about unethical conduct by public officials and discouraged by activist courts that try to redefine marriage. And they worry about children in need, fellow citizens still displaced by natural disaster, and suffering caused by treatable disease.

• Courts Must Deliver Equal Justice Under Law And Not Legislate From The Bench. The Senate has confirmed two superb new members of the Supreme Court, Chief Justice John Roberts and Justice Samuel Alito. The President will continue to nominate men and women who understand that judges must
  be servants of the law and not legislate from the bench.
  
  
• America Must Recognize The Value Of Every Life. The President called on Congress to pass legislation to prohibit the most egregious abuses of medical research: cloning human beings; creating or implanting embryos for experiments; creating human-animal hybrids; and buying, selling, or patenting human embryos. Human life is a gift from our Creator, and that gift should never be discarded, devalued, or put up for sale.
  
  
• Elected Officials Must Uphold The Public Trust. The President supports the efforts of honorable people in both parties who are working on reforms to strengthen the ethical standards of Washington. Public servants make a pledge to be worthy of public responsibility, and that is a pledge that must never be forgotten, dismissed, or betrayed.
  
  
• America Must Protect And Encourage Its Children. Through the Helping America's Youth initiative led by First Lady Laura Bush, America is encouraging caring adults to get involved in the life of a child. The President called for additional resources to encourage young people to stay in school so more of America's youth can raise their sights and achieve their dreams.
  
  
• A Continuing Commitment To Gulf Reconstruction. America will aid our fellow citizens in times of suffering and emergency and stay with them until they are back on their feet. So far the Federal government has committed $85 billion to the people of the Gulf Coast and New Orleans. We are removing debris, repairing highways, building stronger levees, and providing business loans and housing assistance. We must also address deeper challenges that existed before the storm arrived and must provide not only temporary relief, but also schools that teach every child, job skills that bring upward mobility, and more opportunities to own a home and start a business.
  
• Continuing The Fight To Prevent, Treat, And Defeat HIV/AIDS. The President called on Congress to reform and reauthorize the Ryan White Act and to provide new funding to states, so we end the waiting lists for AIDS medicine in America. More than one million Americans live with HIV, and half of all AIDS cases occur among African-Americans. The President called for a nationwide effort, working closely with African-American churches and faith-based groups, to deliver rapid HIV tests to millions, end the stigma of AIDS, and come closer to the day when there are no new infections in America.

State of the Union: The Advanced Energy Initiative

In His State Of The Union Address, President Bush Outlined The Advanced Energy Initiative To Help Break America's Dependence On Foreign Sources Of Energy. The President has set a national goal of replacing more than 75% of our oil imports from the Middle East by 2025. With America on the verge of breakthroughs in advanced energy technologies, the best way to break the addiction to foreign oil is through new technology. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper, and more reliable alternative energy sources. Tonight, the President announced the Advanced Energy Initiative, which provides for a 22% increase in clean-energy research at the Department of Energy (DOE). The Initiative will accelerate our breakthroughs in two vital areas; how we power our homes and businesses; and how we power our automobiles.

Changing The Way We Power Our Homes And Businesses

The Administration Will Work To Diversify Energy Sources For American Homes And Businesses. Accelerating research in clean coal technologies, clean and safe nuclear energy, and revolutionary solar and wind technologies will reduce overall demand for natural gas and lead to lower energy costs. The President's Advanced Energy Initiative proposes speeding up research in three promising areas:

• The President's Coal Research Initiative. Coal provides more than half of the Nation's electricity supply, and America has enough coal to last more than 200 years. As part of the National Energy Policy, the President committed $2 billion over 10 years to speed up research in the use of clean coal technologies to generate electricity while meeting environmental regulations at low cost. To tap the potential of America's enormous coal reserves, the President's 2007 Budget includes $281 million for development of clean coal technologies, nearly completing the President's commitment 4 years ahead of schedule.
  
  
  • The President's 2007 Budget Includes $54 Million For The FutureGen Initiative. The FutureGen initiative is a partnership between government and the private sector to develop innovative technologies for an emissions-free coal plant that captures the carbon dioxide it produces and stores it in deep geologic formations.
    
    
• The President's Solar America Initiative. The 2007 Budget will propose a new $148 million Solar America Initiative – an increase of $65 million over FY06 – to accelerate the development of semiconductor materials that convert sunlight directly to electricity. These solar photovoltaic "PV" cells can be used to deliver energy services to rural areas and can be incorporated directly into building materials, so that there can be future "zero energy" homes that produce more energy than they consume.
  
  
• Expanding Clean Energy from Wind. The 2007 Budget includes $44 million for wind energy research – a $5 million increase over FY06 levels. This will help improve the efficiency and lower the costs of new wind technologies for use in low-speed wind environments. Combined with ongoing efforts to expand access to Federal lands for wind energy development, this new funding will help dramatically increase the use of wind energy in the United States.

Changing The Way We Power Our Automobiles

• We Are On The Verge Of Dramatic Improvements In How We Power Our Automobiles, And The President's Initiative Will Bring Those Improvements To The Forefront. The United States must move beyond a petroleum-based economy and develop new ways to power automobiles. The President wants to accelerate the development of domestic, renewable alternatives to gasoline and diesel fuels. The Administration will accelerate research in cutting-edge methods of producing "cellulosic ethanol" with the goal of making the use of such ethanol practical and competitive within 6 years. The Administration will also step up the Nation's research in better batteries for use in hybrid and electric cars and in pollution-free cars that run on hydrogen.
  
  
• The Biorefinery Initiative. To achieve greater use of "homegrown" renewable fuels in the United States, advanced technologies need to be perfected to make fuel ethanol from cellulosic (plant fiber) biomass, which is now discarded as waste. The President's 2007 Budget will include $150 million – a $59 million increase over FY06 – to help develop bio-based transportation fuels from agricultural waste products, such as wood chips, stalks, or switch grass. Research scientists say that accelerating research into "cellulosic ethanol" can make it cost-competitive by 2012, offering the potential to displace up to 30% of the Nation's current fuel use.
  
  
• Developing More Efficient Vehicles. Current hybrids on the road run on a battery developed at the DOE. The President's plan would accelerate research in the next generation of battery technology for hybrid vehicles and "plug-in hybrids." Current hybrids can only use the gasoline engine to charge the on-board battery. A "plug-in" hybrid can run either on electricity or on gasoline and can be plugged into the wall at night to recharge its batteries. These vehicles will enable drivers to meet most of their urban commuting needs with virtually no gasoline use. Advanced battery technologies offer the potential to significantly reduce oil consumption in the near-term. The 2007 Budget includes $30 million – a $6.7 million increase over FY06 – to speed up the development of this battery technology and extend the range of these vehicles.
  
  
• The Hydrogen Fuel Initiative. In his 2003 State of the Union address, President Bush announced a $1.2 billion Hydrogen Fuel Initiative to develop technology for commercially viable hydrogen-powered fuel cells, which would power cars, trucks, homes, and businesses with no pollution or greenhouse gases. Through private-sector partnerships, the Initiative and related FreedomCAR programs will make it practical and cost-effective for Americans to use clean, hydrogen fuel cell vehicles by 2020. The President's 2007 Budget will provide $289 million – an increase of $53 million over FY06 – to accelerate the development of hydrogen fuel cells and affordable hydrogen-powered cars. Through the President's program, the cost of a hydrogen fuel cell has been cut by more than 50% in just four years.
  
  
• America Must Act Now To Reduce Dependence On Foreign Sources Of Energy. There are an estimated 250 million vehicles on America's highways, and Americans will purchase more than 17 million vehicles this year. It will take approximately 15 years to switch America's automobiles over to more fuel efficient technologies. The sooner breakthroughs are achieved, the better for America.

The President's Advanced Energy Initiative Will Build On The Progress Made Since 2001

Since 2001, The Administration Has Worked To Ensure Affordable, Reliable, Secure, And Clean Sources Of Energy. In 2001, the President put forward his National Energy Policy, which included over 100 recommendations to increase domestic energy supplies, encourage efficiency and conservation, invest in energy-related infrastructure, and develop alternative and renewable sources of energy. Over the past four years, the Administration has worked to implement these recommendations and improve the Nation's energy outlook.

Last Summer, The President Signed The First Comprehensive Energy Legislation In Over A Decade. The Energy Policy Act of 2005 is strengthening America's electrical infrastructure, reducing the country's dependence on foreign sources of energy, increasing conservation, and expanding the use of clean renewable energy.

State of the Union: American Competitiveness Initiative

In His State Of The Union Address, President Bush Announced The American Competitiveness Initiative (ACI) To Encourage American Innovation And Strengthen Our Nation's Ability To Compete In The Global Economy. This ambitious strategy will increase Federal investment in critical research, ensure that the United States continues to lead the world in opportunity and innovation, and provide American children with a strong foundation in math and science. The American Competitiveness Initiative commits $5.9 billion in FY 2007, and more than $136 billion over 10 years, to increase investments in research and development (R&D), strengthen education, and encourage entrepreneurship and innovation.

America's Economic Strength And Global Leadership Depend On Continued Technological Advances. Groundbreaking ideas generated by innovative minds have paid enormous dividends – improving the lives and livelihoods of generations of Americans. With more research in both the public and private sectors, we will improve our quality of life – and ensure that America will lead the world in opportunity and innovation for decades to come. The President's comprehensive strategy to strengthen America's competitiveness includes:

• Doubling the Federal commitment to the most critical basic research programs in the physical sciences over the next 10 years;
• Encouraging the expansion of a favorable environment for additional private-sector investment in innovation;
• Improving the quality of education to provide American children with a strong foundation in math and science;
• Supporting universities that provide world-class education and research opportunities;
• Providing job training that affords more workers and manufacturers the opportunity to improve their skills and better compete in the 21st century;
• Attracting and retaining the best and brightest to enhance entrepreneurship, competitiveness, and job creation in America by supporting comprehensive immigration reform; and
• Fostering a business environment that encourages entrepreneurship and protects intellectual property.

As The Global Economy Continues To Expand And Other Countries Become More Technologically Advanced, The United States Will Face New Challenges. To ensure our continued economic and technological leadership in the world, the American Competitiveness Initiative builds on the Administration's record of results with new investments, especially in the physical sciences and engineering. Investments in these areas will generate scientific and technological advances for decades to come and will help ensure that future generations have an even brighter future.

Leading The World In Innovation

Federal Investment In R&D Has Proven Critical To Keeping America's Economy Strong By Generating Knowledge And Tools Needed To Develop New Technologies. The centerpiece of the American Competitiveness Initiative is the President's strong commitment to double over 10 years investment in key Federal agencies that support basic research programs in the physical sciences and engineering – the National Science Foundation (NSF), the Department of Energy's Office of Science (DoE SC), and the Department of Commerce's National Institute of Standards and Technology (NIST).

• With about 5 percent of the world's population, the United States employs nearly one-third of all scientists and engineers and accounts for one-third of global R&D spending. As the global marketplace changes, we must focus on maintaining our leadership role.
• The President's FY07 Budget includes $137 billion for Federal research and developm