Bush Sets Sights Low in Final State of the Union Address

WASHINGTON — President Bush, running out of time and influence, Monday night offered a lowered-sights domestic agenda in his final State of the Union address.

Faced with a troubled economy, an ongoing war and a populace that tells pollsters it has little faith in the president and lawmakers it elected, Bush did not utter the declaration common to most State of the Union addresses: "The state of our union is strong."

Still, Bush wrapped up the speech on an optimistic note keyed on the evening's central theme: trusting and empowering the people, instead of the government.

"So long as we continue to trust the people, our nation will prosper, our liberty will be secure and the state of our union will remain strong," he said. "So tonight, with confidence in freedom's power and trust in the people, let us set forth to do their business."

As promised by aides, Bush's 53-minute speech opening his final year in office was no valedictory address tallying his successes. It did, however, open on a retrospective note.

"Seven years have passed since I first stood before you at this rostrum. In that time, our country has been tested in ways none of us could have imagined. We have faced hard decisions about peace and war, rising competition in the world economy, and the health and welfare of our citizens," Bush said.

Those issues, he added, called for "vigorous debate." In a nod to the partisan contentiousness that has marked his tenure and his inability to change the tone in Washington, he added, "I think it's fair to say we've answered that call."

On foreign policy, Bush cited democratic advances in Afghanistan, Georgia and Ukraine. But he also mentioned bloody "images that have sobered us" from around the world, including the 9/11 attacks.

"The advance of liberty is opposed by terrorists and extremists — evil men who despise freedom, despise America, and aim to subject millions to their violent rule," Bush said.

He declared his retooled Iraq strategy a success.

"Some may deny the surge is working, but among the terrorists there is no doubt. Al-Qaida is on the run in Iraq and the enemy will be defeated," he said.

And in the most ambitious note of the night, he said, "The time has come for a Holy Land where a democratic Israel and a democratic Palestine live side by side in peace."

While international challenges abound, Bush somewhat suddenly has had to make the domestic economy his top priority.

He offered a good news-bad news look at the economy, noting that job growth has continued for 52 months, but growth has slowed; wages are up, but so are things wage-earners must buy; exports have increased, but the housing market has declined.

"At kitchen tables across our country there is concern about our economic future," he said, but "in the long run, Americans can be confident about our economic growth."

In the short run, Bush believes an infusion of cash is needed. He called for quick congressional approval of a new $150 billion plan aimed at pumping purchasing power into Americans' pockets.

Although House leaders of both parties have approved the plan, Senate Democrats are working on expanding the bill to include money for Social Security recipients and an extension of unemployment benefits.

Don't do it, Bush warned. Loading up the bill "would delay or derail it, and neither option is acceptable."

While acknowledging there is little chance for congressional action on major issues this year, Bush vowed to use executive orders and vetoes to shoot down congressional budget earmarks, the local projects despised everywhere except in the districts they are designed to benefit.

The federal budget approved last month includes 11,700 earmarks totaling more than $17 billion.

Bush said he would veto upcoming appropriations bills if they do not halve the number and cost of earmarks. He also said he would issue an executive order Tuesday ordering agencies to ignore any earmarks included in committee reports and not in the text of the appropriations bill.

"If these items are truly worth funding, the Congress should debate them in the open and hold a public vote," Bush said.

Absent from the speech were any bold proposals for sweeping overhauls on major issues such as immigration. Past initiatives on immigration, Medicare and Social Security failed to advance through Congress. Monday night, Bush lumped them into a category he called issues "this body has failed to address" and indicated he is done offering proposals.

"Now I ask members of Congress to offer your proposals and come up with a bipartisan solution to save these vital programs for our children and grandchildren," he said of the health and pension programs.

Bush's immigration plan last year died under fire from Republicans who said his pathway-to-citizenship plan for illegal immigrants sounded too much like amnesty.

"America needs to secure our borders," Bush said, adding, "Yet we also need to acknowledge that we will never fully secure our border until we create a lawful way for foreign workers to come here and support our economy. ... We must also find a sensible and humane way to deal with people here illegally."

In place of new proposals on high-profile issues, Bush offered a handful of initiatives that in previous years would have been considered tinkering around the margins.

He wants a $300 million grant program to help move poor kids out of failing schools, and a military families initiative that would give spouses an edge when seeking federal jobs and expand education benefits to military spouses and children.

He also called for action on two issues that could help define Bush's long-term impact on the nation: education and taxes. He urged reauthorization of the No Child Left Behind Act and legislation to make permanent the tax cuts scheduled to expire in 2010.

On the tax cuts, already in the cross hairs of Democratic presidential candidates, Bush said, "Some in Washington argue that letting tax relief expire is not a tax increase. Try explaining that to 116 million American taxpayers who would see their taxes rise by an average of $1,800."

"Others have said they would personally be happy to pay higher taxes. I welcome their enthusiasm, and I am pleased to report that the IRS accepts both checks and money orders," he added.

In reaction, Democrats chided Bush's current policies and his failure to offer new major proposals.

For their official response, the Democrats opted for an outside-the-Beltway voice, Kansas Gov. Kathleen Sebelius.

"Tonight's address begins the final year of this presidency, with new leaders on the horizon and uncertainty throughout our land. Conditions we face, at home and abroad, are results of choices made and challenges unmet," she said. "In spite of the attempts to convince us that we are divided as a people, a new American majority has come together. We are tired of leaders who rather than asking what we can do for our country, ask nothing of us at all."

Rep. Ed Markey, D-Mass., said Bush offered only "the same old tired rhetoric and failed policy ideas." He added, "The president may have one foot out the door, but for the sake of the American people he needs to grasp this last year as a chance to create a positive legacy."

House Speaker Nancy Pelosi, D-Calif., and Senate Democratic Leader Harry Reid of Nevada offered a "rapid response" highlighting the majority party's goals for the year.

"The president's vision tonight may have been too small for many of the challenges we face," Reid and Pelosi said in the statement. "But his pledge to 'cooperate for results' is right for the times."

The Democratic leaders said Bush "gave no hope for an end to the war in Iraq, approaching the five-year mark, with no political reconciliation and too great a toll on our troops, our trust and our treasury."

Earlier, Pelosi said Bush's focus on earmarks was "pretty sad."

"The president of the United States, in his final State of the Union address, is not talking about the promise of the future, he's talking about the process of an appropriations bill," she said.