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THE WHITE HOUSE
Office of the Press Secretary
___________________________________________________________________________________________
May 11, 2009
REMARKS BY THE PRESIDENT
ON REFORMING THE HEALTH CARE SYSTEM
TO REDUCE COSTS
State Dining Room
12:35 P.M. EDT
THE PRESIDENT: Hello, everyone. All right. Well, I just concluded a extraordinarily productive meeting with organizations and associations that are going to be essential to the work of health care reform in this country -- groups that represent everyone from union members to insurance companies, from doctors and hospitals to pharmaceutical companies. It was a meeting that focused largely on one of the central challenges that we must confront as we seek to achieve comprehensive reform and lay a new foundation for our economy -- and that is, the spiraling cost of health care in this country.
They're here because they recognize one clear, indisputable fact: When it comes to health care spending, we are on an unsustainable course that threatens the financial stability of families, businesses and government itself.
This is not news to the American people, who, over the last decade, have seen their out-of-pocket expenses soar, health care costs rise, and premiums double at a rate four times faster than their wages.
Today, half of all personal bankruptcies stem from medical expenses. And too many Americans are skipping that check-up they know they should get, or going without that prescription that would make them feel better, or finding some other way to scrimp and save on their health care expenses.
What is a growing crisis for the American people is also becoming an untenable burden for America's businesses. Rising health care costs are commanding more and more of the money that our companies could be using to innovate and to grow, making it harder for them to compete around the world. These costs are leading the small businesses that are responsible for half of all private sector jobs to drop coverage for their workers at an alarming rate.
And, finally, the explosion in health care costs has put our federal budget on a disastrous path. This is largely due to what we're spending on Medicare and Medicaid -- entitlement programs whose costs are expected to continue climbing in the years ahead as baby boomers grow older and come to rely more and more on our health care system. That's why I've said repeatedly that getting health care costs under control is essential to reducing budget deficits, restoring fiscal discipline, and putting our economy on a path towards sustainable growth and shared prosperity.
We, as a nation, are now spending a far larger share of our national wealth on health care than we were a generation ago. At the rate we're going, we are expected to spend one fifth of our economy on health care within a decade. And yet we're getting less for our money. In fact, we're spending more on health care than any other nation on Earth, even though millions of Americans don't have the affordable, quality care they deserve, and nearly 46 million Americans don't have any health insurance at all.
This problem didn't just appear overnight. For decades, Washington has debated what to do about this. For decades, we've talked about reducing costs, improving care, and providing coverage to uninsured Americans. But all too often, efforts at reform have fallen victim to special interest lobbying aimed at keeping things the way they are; to political point-scoring that sees health care not as a moral issue or an economic issue, but as a wedge issue; and to a failure on all sides to come together on behalf of the American people.
And that's what makes today's meeting so remarkable -- because it's a meeting that might not have been held just a few years ago. The groups who are here today represent different constituencies with different sets of interests. They've not always seen eye to eye with each other or with our government on what needs to be done to reform health care in this country. In fact, some of these groups were among the strongest critics of past plans for comprehensive reform.
But what's brought us all together today is a recognition that we can't continue down the same dangerous road we've been traveling for so many years; that costs are out of control; and that reform is not a luxury that can be postponed, but a necessity that cannot wait. It's a recognition that the fictional television couple, Harry and Louise, who became the iconic faces of those who opposed health care reform in the '90s, desperately need health care reform in 2009. And so does America.
And that's why these groups are voluntarily coming together to make an unprecedented commitment. Over the next 10 years -- from 2010 to 2019 -- they are pledging to cut the rate of growth of national health care spending by 1.5 percentage points each year -- an amount that's equal to over $2 trillion. Two trillion dollars.
Their efforts will help us take the next and most important step -- comprehensive health care reform -- so that we can do what I pledged to do as a candidate and save a typical family an average of $2,500 on their health care costs in the coming years. Let me repeat that point. What they're doing is complementary to and is going to be completely compatible with a strong, aggressive effort to move health care reform through here in Washington with an ultimate result of saving health care costs for families, businesses and the government. That's how we can finally make health care affordable, while putting more money into the pockets of hardworking families each month. These savings can be achieved by standardizing quality care, incentivizing efficiency, investing in proven ways not only to treat illness but to prevent them.
This is a historic day, a watershed event in the long and elusive quest for health care reform. And as these groups take the steps they are outlining, and as we work with Congress on health care reform legislation, my administration will continue working to reduce health care costs to achieve similar savings. By curbing waste, fraud, and abuse and preventing avoidable hospital re-admissions and taking a whole host of other cost-saving steps, we can save billions of dollars, while delivering better care to the American people.
Now, none of these steps can be taken by our federal government or our health care community acting alone. They'll require all of us coming together, as we are today, around a common purpose -- workers, executives, hospitals, nurses, doctors, drug companies, insurance companies, members of Congress. It's the kind of broad coalition, everybody with a seat at the table that I talked about during the campaign, that is required to achieve meaningful health care reform and that is the kind of coalition which -- to which I am committed.
So the steps that are being announced today are significant. But the only way these steps will have an enduring impact is if they are taken not in isolation, but as part of a broader effort to reform our entire health care system. We've already begun making a down payment on that kind of comprehensive reform. We're extending quality health care to millions of children of working families who lack coverage, which means we're going to be preventing long-term problems that are even more expensive to treat down the road. We're providing a COBRA subsidy to make health care affordable for 7 million Americans who lose their jobs. And because much of every health care dollar is spent on billing, overhead, and administration, we are computerizing medical records in a way that will protect our privacy, and that's a step that will not only eliminate waste and reduce medical errors that cost lives, but also let doctors spend less time doing administrative work and more time caring for patients.
But there's so much more to do. In the coming weeks and months, Congress will be engaged in the difficult issue of how best to reform health care in America. I'm committed to building a transparent process where all views are welcome. But I'm also committed to ensuring that whatever plan we design upholds three basic principles: First, the rising cost of health care must be brought down; second, Americans must have the freedom to keep whatever doctor and health care plan they have, or to choose a new doctor or health care plan if they want it; and third, all Americans must have quality, affordable health care.
These are principles that I expect to see upheld in any comprehensive health care reform bill that's sent to my desk -- I mentioned it to the groups that were here today. It's reform that is an imperative for America's economic future, and reform that is a pillar of the new foundation we seek to build for our economy; reform that we can, must, and will achieve by the end of this year.
Ultimately, the debate about reducing costs -- and the larger debate about health care reform itself -- is not just about numbers; it's not just about forms or systems; it's about our own lives and the lives of our loved ones. And I understand that. As I've mentioned before during the course of the campaign, my mother passed away from ovarian cancer a little over a decade ago. And in the last weeks of her life, when she was coming to grips with her own mortality and showing extraordinary courage just to get through each day, she was spending too much time worrying about whether her health insurance would cover her bills. So I know what it's like to see a loved one who is suffering, but also having to deal with a broken health care system. I know that pain is shared by millions of Americans all across this country.
And that's why I was committed to health care reform as a presidential candidate; that's why health care reform is a key priority to this presidency; that's why I will not rest until the dream of health care reform is finally achieved in the United States of America. And that's why I'm thrilled to have such a broad, diverse group of individuals from all across the health care spectrum representing every constituency and every political predisposition who feel that same sense of urgency and are committing themselves to work diligently to bring down costs so we can achieve the reforms that we seek.
So thank you very much to all of you for being here. Thank you very much everybody.
END 12:46 P.M. EDT
THE WHITE HOUSE
Office of the Press Secretary
__________________________________________________________________________________________________________________
May 7, 2009
Remarks of President Barack Obama
Reducing Spending in the Budget
Dwight D. Eisenhower Executive Office Building , Room 350
May 7, 2009
All across this country, Americans are responding to difficult economic times by tightening their belts and making tough decisions about where they need to spend and where they need to save. The question the American people are asking is whether Washington is prepared to act with the same sense of responsibility.
I believe we can and must do exactly that. Over the course of our first hundred days in office, my administration has taken aggressive action to confront an historic economic crisis. We are doing everything that we can to create jobs and get our economy moving while building a new foundation for lasting prosperity – a foundation that invests in quality education, lowers health care costs, and develops new sources of energy powered by new jobs and industries.
But one of the pillars of this foundation is fiscal responsibility. We can no longer afford to spend as if deficits do not matter and waste is not our problem. We can no longer afford to leave the hard choices for the next budget, the next administration – or the next generation.
That is why I’ve charged the Office of Management and Budget, led by Peter Orszag and Rob Nabors who are standing behind me today, with going through the budget – program by program, item by item, line by line – looking for areas where we can save taxpayer dollars.
Today, the budget office is releasing a first report in this process: a list of more than one hundred programs slated to be reduced or eliminated altogether. And the process is ongoing.
I want to be clear: there are many, many people doing valuable work for our government across the country and around the world. It’s important that we support these folks – folks who don’t draw a big paycheck or earn a lot of praise but who do tough, thankless jobs on our behalf. This is not a criticism of them.
At the same time, however, there is a lot of money being spent inefficiently, ineffectively, and – in some cases – in ways that are actually pretty stunning.
Some programs may have made sense in the past – but are no longer needed in the present. Other programs never made any sense; the end result of a special interest’s successful lobbying campaign. Still other programs perform functions that can be conducted more efficiently – or are already carried out more effectively elsewhere in the government.
One example of a program we will cut is a long-range radio navigation system which costs taxpayers $35 million a year. This system once made a lot of sense, before there were satellites to help us navigate. Now there’s GPS. Yet, year after year, this obsolete technology has continued to be funded even though it serves no government function and very few people are left who still actually use it.
Another example is the National Institute for Literacy. We strongly support initiatives that promote literacy, but we oppose programs that do it badly. Last year, nearly half of their funding was spent on overhead. So we’ve proposed cutting the $6 million for this program, in favor of supporting literacy efforts within the Department of Education in which tax dollars can be used in a more effective way.
We’re also closing an office maintained by the Department of Education in Paris . This is an office that costs hundreds of thousands of dollars to employ one person as a representative to United Nations Educational, Scientific and Cultural Organization, or UNESCO. Participation in UNESCO is very important. But we can save this money and still participate using e-mail, teleconferencing, and a small travel budget.
In addition, we’re going to save money by eliminating unnecessary defense programs that do nothing to keep us safe – but rather prevent us from spending money on what does keep us safe. One example is a $465 million program to build an alternate engine for the Joint Strike Fighter. The Defense Department is already pleased with the engine it has. They do not want – and do not plan to use – the alternate version. That’s why the Pentagon stopped requesting this funding two years ago. Yet it’s still being funded.
These are just a few examples. But the point to remember is that there are consequences for this kind of spending. It makes the development of new tools for our military, like the Joint Strike Fighter, more expensive – even prohibitively so – and crowds out money for our troops. It makes government less effective. It makes our nation less resilient and less able to address immediate concerns and long-term challenges. And it leaves behind a massive burden for our children and grandchildren.
Some of the cuts we’re putting forward today are more painful than others. Some are larger than others. In fact a few of the programs we eliminate will produce less than a million dollars in savings. Of course, outside of Washington , that’s still a lot of money.
But these savings, large and small, add up. The 121 budget cuts we are announcing today will save taxpayers nearly $17 billion next year alone. That’s a lot of money, even by Washington standards. To put this in perspective, this is more than enough savings to pay for a $2,500 tuition tax credit for millions of students as well as a larger Pell Grant – with enough money left over to pay for everything we do to protect the National Parks.
And this is just one aspect of the budget reforms and savings we are seeking.
I’ve signed a Presidential Memorandum to end unnecessary no-bid contracts and dramatically reform the way government contracts are awarded – reform that will save the American people up to $40 billion each year.
Secretary Gates has proposed the elimination of expensive weapons systems ill-suited for the threats of the 21st century – and a sweeping overhaul of a defense contracting system which has been riddled with hundreds of billions of dollars in waste and cost overruns. A proposal to accomplish these kinds of reforms, sponsored by Senators John McCain and Carl Levin in the Senate, and Representatives Ike Skelton and John McHugh in the House, is advancing through the Congress.
We’re also going to eliminate the subsidies we provide to the health insurance companies through Medicare, saving roughly $22 billion each year starting in 2012 as part of a broader effort to reduce health care costs – essential to putting our nation on a secure fiscal footing.
All told, by the end of my first term we will cut the deficit in half. Over the next decade we’ll bring non-defense discretionary spending to its lowest level as a share of Gross Domestic Product since 1962. We will also continue to look for ways we can save taxpayers money. And I know there are many in both parties in Congress committed to cutting spending and eager to work with us.
One important step is restoring the “pay as you go” rule – and I’ve called on Congress to do exactly that. This rule says, simply, that Congress can only spend a dollar if it saves a dollar elsewhere. This is the principle that guides responsible families managing a budget. And this is the principle that helped transform large deficits into surpluses in the 1990s.
I’ve asked my cabinet to continue to scour their budgets looking for savings and to report their findings back to me. And I’ve proposed other creative ways to control spending. For example, we don’t want agencies to protect bloated budgets – we want them to promote effective programs. So we’ll allow agencies that identify savings to keep a portion of those savings to invest in programs that work.
We’re also making it possible for government employees to submit their ideas for how their agency can save money and perform better. And we’re going to reach beyond the halls of government. Many businesses have innovative ways of using technology to save money, and many experts have new ideas to make government work more efficiently. Government can – and must – learn from them.
Finally, while these steps will help us cut our deficit in half over the next four years, there are looming challenges to our fiscal health beyond that – challenges that will require us to make health care more affordable and to work on a bipartisan basis to address programs like Social Security. What we are proposing today does not replace the need for large changes in non-discretionary spending.
None of this will be easy. For every dollar we seek to save there will be those who have an interest in seeing it spent. That’s how unnecessary programs survive year after year. That’s how budgets swell. That’s how the people’s interest is slowly overtaken by the special interests. But at this moment – at this difficult time for our nation – we cannot accept business as usual. We cannot accept anything less than a government ready to meet the challenges of our time.
We must build a government of the 21st century – a government that is more efficient and more effective. A government that does what we need it to do – and nothing we don’t. A government that invests in our future without leaving behind enormous financial burdens that put our future in jeopardy. And today we have taken an important step toward building this kind of government – not just for this generation of Americans, but for the sake of generations to come.
Thank you.
Bank of America Corp. named Walter E. Massey, a longtime director and president emeritus at Atlanta’s Morehouse College, its new chairman, effective immediately.
After months of anger following the acquisition of troubled investment bank Merrill Lynch & Co., shareholders voted at the company’s annual meeting Wednesday to separate the jobs of chairman and CEO. Former Chairman John Lewis will remain the CEO of the bank.
“Massey has been a strong leader for our company,” a spokesperson for the bank said. “He brings a broad range of experience and a deep knowledge of Bank of America’s businesses and strategy.”
A recognized leader in science, business, and education, Massey has been a director of Morehouse’s board since 1998. He also served as the college’s ninth president (No. 3 on the BE 50 Top Colleges for African Americans) from 1995 to 2007. Under his leadership, the college raised $118 million and constructed several learning facilities, including a state-of-the-art technology building.
“President Massey will provide strategic leadership, integrity, and sound business judgment for one of America’s great financial institutions,” said Robert M. Franklin, Morehouse president. “Morehouse College is exceedingly proud of alumnus and President Emeritus Massey, who is a quintessential renaissance man.”
Calls for Lewis’ resignation have been on the rise since Bank of America’s purchased Countrywide and Merrill for more than $52 billion.
In his remarks to shareholders, he continued to defend the acquisitions despite a $15 billion fourth quarter loss by Merrill. “I continue to believe we have built the best financial company in the industry, and that our results over the long term will bear that out,” Lewis said at the meeting.
Massey assumes his new role at the financial services company as it works speedily to repay $45 billion in government aid received through the Troubled Asset Relief Program. Earlier this month Bank of America has made arrangements to pay back $713 million of the loan money.
Massey is no stranger to the colossus financial company; he served as a director at Bank of America from 1993 to 1998. The Mississippi native earned a bachelor of science in physics and mathematics from Morehouse in 1958. He received his Master’s and doctorate degrees in physics in 1966 from Washington University in St. Louis. Massey’s research has involved the study of quantum liquids and solids.
He and his wife, Shirley Anne, have two sons and three grandchildren.
Bank of America earned $2.56 billion after preferred dividends for all of 2008, down from $14.80 billion in fiscal 2007.
It's A New Day !
THE WHITE HOUSE
Office of the Press Secretary
_________________________________________________________________________________________________
April 30, 2009
REMARKS BY THE PRESIDENT
ON THE AUTO INDUSTRY
Grand Foyer
12:08 P.M. EDT
THE PRESIDENT: Hey, guys. I know you haven't seen enough of me lately, so -- (laughter.)
One month ago, I spoke about some of the problems that have led to the crisis in the auto industry, and about what would be required to ensure that General Motors and Chrysler emerged from their current troubles stronger and more competitive. My team will continue working with General Motors as they strengthen their business plan and move towards restructuring that's consistent with the principles that I've laid out.
And today, after consulting with my Auto Task Force, I can report that the necessary steps have been taken to give one of America 's most storied automakers, Chrysler, a new lease on life.
This is a company that has a particular claim on our American identity. It's a company founded in the early years of the American automobile industry; a company that helped make the 20th century an American Century; and that came to embody, along with the two other members of the Big Three, the ingenuity, the industriousness, and the indomitable spirit of the American people.
Chrysler has not only been an icon of America's auto industry and a source of pride for generations of American workers; it's been responsible for helping build our middle class, giving countless Americans the chance to provide for their families, sending their kids to college, saving for a secure retirement. It's what hundreds of thousands of autoworkers and suppliers and dealers and their families rely on to pay their bills in communities across our industrial Midwest and across our country.
It's been a pillar of our industrial economy, but, frankly, a pillar that's been weakened by papering over tough problems and avoiding hard choices. For too long, Chrysler moved too slowly to adapt to the future, designing and building cars that were less popular, less reliable, and less fuel-efficient than foreign competitors. That's part of what has brought us to a point where they sought taxpayer assistance.
But as I've said from the start, we simply cannot keep this company, or any company, afloat on an endless supply of tax dollars. My job, as President, is to ensure that if tax dollars are being put on the line, they are being invested in a real fix that will make Chrysler more competitive.
That's why I rejected the original restructuring plan that Chrysler offered last month. It was clear that if we put tax dollars in that plan, it would be a bad deal for American taxpayers and would not put the company on a viable path. But it's also clear that if Chrysler was able to form a partnership with the international car company Fiat, there was a chance Chrysler could have a bright future.
After consulting with my Auto Task Force, industry experts, and financial advisors, I decided to give Chrysler and Fiat 30 days to reach an agreement. And the standard I set was high -- I challenged them to design a plan that would protect American jobs, American taxpayers, and the future of a great American car company. But over the past month, seemingly insurmountable obstacles have been overcome, and Chrysler's most important stakeholders -- from the United Auto Workers to Chrysler's largest lenders, from its own -- from its former owners to its suppliers -- have agreed to make major sacrifices.
So, today, I am pleased to announce that Chrysler and Fiat have formed a partnership that has a strong chance of success. It's a partnership that will save more than 30,000 jobs at Chrysler, and tens of thousands of jobs at suppliers, dealers and other businesses that rely on this company.
It's a partnership that the federal government will support by making additional loans that are consistent with what I outlined last month. As part of their agreement, every dime of new taxpayer money will be repaid before Fiat can take a majority ownership stake in Chrysler. In addition, considering Chrysler's extensive operations in Canada , the government of Canada is also committing resources to ensure that Chrysler has a chance to succeed, and we're working closely with them.
It's a partnership that will give Chrysler a chance not only to survive, but to thrive in a global auto industry. Fiat has demonstrated that it can build the clean, fuel-efficient cars that are the future of the industry, and as part of this agreement, Fiat has already agreed to transfer billions of dollars in cutting-edge technology to Chrysler to help them do the same. Fiat is also committed to working with Chrysler to build new fuel-efficient cars and engines right here in America .
Now, this partnership was only possible because of unprecedented sacrifices on the part of Chrysler's stakeholders, who are willing to give something up so that this company -- and all of the men and women whose livelihoods depend on it -- might see a better day. Chrysler's management, and in particular, its CEO, Robert Nardelli, have played a positive and constructive role throughout this process. The United Auto Workers, who had already made painful concessions, agreed to further cuts in wages and benefits; cuts that will help Chrysler survive, making it possible for so many workers to keep their jobs and about 170,000 retirees and their families to keep their health care.
Several major financial institutions, led by J.P. Morgan, agreed to reduce their debt to less than one-third of its face value to help free Chrysler from its crushing obligations. The German automaker, Daimler, agreed to give up its stake in Chrysler and contribute to the company's pension plan, further easing Chrysler's financial burden. And countless Americans across our country will be making major sacrifices, as well, as a result of plans to consolidate dealers, brands, and product lines.
While many stakeholders made sacrifices and worked constructively, I have to tell you some did not. In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices, and they would have to make none. Some demanded twice the return that other lenders were getting. I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out when everybody else is making sacrifices. And that's why I'm supporting Chrysler's plans to use our bankruptcy laws to clear away its remaining obligations so the company can get back on its feet and onto a path of success.
No one should be confused about what a bankruptcy process means. This is not a sign of weakness, but rather one more step on a clearly charted path to Chrysler's revival. Because of the fact that the UAW and many of the banks, the biggest stakeholders in this whole process have already aligned, have already agreed, this process will be quick. It will be efficient. It's designed to deal with those last few holdouts, and it will be controlled. It will not disrupt the lives of the people who work at Chrysler or live in communities that depend on it. And it will not affect the ability of American consumers to buy a Chrysler, or to get it serviced and repaired. It's a process that has the full support of Chrysler's key stakeholders and the full backing of the United States government. And I have every confidence that Chrysler will emerge from this process stronger and more competitive.
I know that there are some who will insist that bankruptcy, even for these limited purposes, is a step that should not have been taken. But it was unsustainable to let enormous liabilities remain on Chrysler's books, and it was unacceptable to let a small group of speculators endanger Chrysler's future by refusing to sacrifice like everyone else. So I recognize that the path we're taking is hard. But as is often the case, the hard path is the right one.
The path we're taking also involves steps to shore up financing, because we cannot have viable car companies without strong car financing companies. It's now clear that Chrysler Financial -- the institution that finances Chrysler cars and dealers -- would on its own require an unacceptably large stream of taxpayer money to remain viable -- and that's something I refuse to provide. And that is why, as part of this agreement, GMAC, an independent bank holding company that finances General Motors, has agreed to finance new Chrysler sales. We will be providing additional capital to GMAC to help unlock our frozen credit markets and free up lending so that consumers can get auto loans and dealers can finance their inventories; a measure that will help stabilize not only our auto market, but the broader economy, as well. And tomorrow, the Small Business Administration will be announcing it is expanding eligibility for some loans to include more suppliers and dealers, including RV dealers.
So these are some of the steps that we're taking to make it easier for Americans to buy a car. If you are considering buying a car, I hope it will be an American car. I want to remind you that if you decide to buy a Chrysler, your warrantee will be safe -- because it is backed by the United States government. And to further boost demand for autos, we are working to accelerate the purchase of a federal fleet, and we're also working with Congress on fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars.
As pleased as I am about today's announcement and about the opportunity Chrysler has to remake itself, we know that far too many Americans in far too many communities are still struggling, as a result of layoffs not only at plants that produce cars, but at the businesses that produce the parts that go into them and at the dealers that sell and repair them. And that's why, as I discussed the last time we gathered here to talk about autos, I've named Ed Montgomery to be the Director of Recovery for Auto Communities and Workers. Ed will be traveling to Michigan next week with representatives from all the key government agencies represented here, reaching out to our hardest-hit areas, cutting through red tape, ensuring that the full resources of the federal government are getting to the workers, the families, and communities that need it the most.
Now, these are challenging times for America 's auto industry and for the American people. But I am confident that if we as a nation can act with the same sense of shared sacrifice and shared purpose that's been shown by so many of Chrysler's stakeholders, if we can embrace the idea that we're all in it together -- from the union hall to the boardroom to the halls of Congress -- then we will succeed not only with Chrysler, we will not only see our American auto industry rise again, but we will rebuild our entire economy and make the 21st century another American Century.
We have made great progress. We can make great American cars. Chrysler and GM are going to come back. And I am very confident that we're going to be able to make once again the U.S. auto industry the best auto industry in the world.
And I want to thank my entire auto team who worked so diligently on what I consider to be a much better outcome than it looked like we were going to see 30 days ago.
Thank you very much, everybody.
END 12:20 P.M. EDT
THE WHITE HOUSE
Office of the First Lady
________________________________________________________________
April 28, 2009
REMARKS BY THE FIRST LADY
AT THE SOJOURNER TRUTH BUST UNVEILING
U.S. Capitol
Washington, D.C.
12:13 P.M. EDT
MRS. OBAMA: Thank you. Thank you so much. I'm not going to talk long because everybody has said just about everything that can be said. But let me tell you something, I am proud to be here.
I want to congratulate everyone who was a part of making this day possible: the NCBW, all of the elected official, C. DeLores Tucker, her family, the family of Sojourner Truth. It is just a sheer delight to have you here witnessing this.
But let's just think about this day and this gathering. It is so good to see this hall filled with so many strong women -- a few brothers in here, a few people -- (applause) -- but such a diverse group of people crowding this hall. And one can only imagine what Sojourner Truth, an outspoken, tell-it-like-it-is kind of woman -- and we all know a little something about that, right -- (applause) -- just to imagine what she would have to say about this incredible gathering, just looking down on this day, and thinking about the legacy she has left all of us -- because we are all here because, as my husband says time and time again, we stand on the shoulders of giants like Sojourner Truth. (Applause.)
And just as Susan B. Anthony, Elizabeth Cady Stanton, Lucretia Mott would be pleased to know that we have a woman serving as the Speaker of the House of Representatives, I hope that Sojourner Truth would be proud to see me, a descendant of slaves, serving as the First Lady of the United States of America. (Applause.) So I am proud to be here. I am proud to be able to stand here on this day with this dedication.
And just as many young boys and girls have walked through this Capitol -- I see them now, and they see the bust of suffragists and hear the stories of the struggles of women, what they had to endure to gain the right to vote -- now many young boys and girls, like my own daughters, will come to Emancipation Hall and see the face of a woman who looks like them. (Applause.)
And all the visitors in the U.S. Capitol will hear the story of brave women who endured the greatest of humanities -- indignities. They'll hear the story of Sojourner Truth who didn't allow those indignities to destroy her spirit, who fought for her own freedom, and then used her powers, young people -- then she used her power to help others; who fought for the right to vote and for the rights of all women.
The power of this bust will not just be in the metal that delineates Sojourner Truth's face; it will also be in the message that defines her legacy.
Forever more, in the halls of one of our country's greatest monuments of liberty and equality, justice and freedom, Sojourner's Truth story will be told again and again and again and again. So now let's get on with unveiling this statue. Thank you so much. (Applause.)
END 12:18 P.M. EDT
President Obama on phone with Senator Arlen SpecterPresident Obama to Senator Arlen Specter:
'We Are Thrilled To Have You'
White House aides said on Tuesday that they had no advanced knowledge that Pennsylvania Sen. Arlen Specter would be switching party affiliation from Republican to Democrat. Once told, however, the president reached Specter to express his thrill at having him in the party and to offer his full support.
According to a White House aide, the president found out about the switch at 10:25 AM while in the Oval Office receiving his Economic Daily Briefing.
The president was handed a note, the aide said, that read: "Specter is announcing he is changing parties."
Seven minutes later, President Obama reached Specter to tell him, according to the aide, "You have my full support" and that we are "thrilled to have you."
The White House released a photo Tuesday of the president on the phone with Specter:
B4B Note: We congratulate Senator Arlen Specter for the strength it took to switch parties. Contact Senator Specter HERE to show your appreciation. Could Senators Susan Collins and Olympia Snowe be next ?
President Obama's Plans to Make College Affordable
THE WHITE HOUSE
Office of the Press Secretary
______________________________________________________________________________
April 24, 2009
President Obama Meets with Family Struggling with College Costs, Underscores Need to Eliminate Wasteful Spending in Federal Student Loan Program, Reinvest Savings in Making College More Affordable
WASHINGTON – Today, President Barack Obama met with a family struggling to afford the cost of college and underscored his commitment to cutting wasteful spending on federal student loans by ending taxpayer subsidies to banks. President Obama discussed the strain that rising tuition costs are placing on middle class families and his proposal to end the private Federal Family Education Loans program that lines the pockets of the banks who serve as middlemen while costing the American people $5 billion a year.
“The banks and lenders who have reaped a windfall from these subsidies have mobilized an army of lobbyists to try and keep things the way they are,” President Obama said. “They are gearing up for a battle. And so am I. They will fight for their special interests. I will fight for America ’s students, and their families.”
Below is information on President Obama’s proposal.
Reforming Student Loans to Make College Affordable
“We will provide the support necessary for you to complete college and meet a new goal: by 2020, America will once again have the highest proportion of college graduates in the world.”
-- President Barack Obama, February 24, 2009
America’s future economic strength depends on the quality of our education. Countries that out-teach us today will out-compete us tomorrow. America once had one of the most educated workforces in the world, but it has now slipped to the middle of the pack. Only 38 percent of young workers have a college degree, a lower percentage than nine other countries and no higher than a generation ago. At the same time, we do not provide enough financial aid, partly because the student loan program spends $5 billion more than necessary subsidizing banks and other lenders to make student loans.
Today, President Obama met with a family struggling to afford the cost of college and released a new analysis of the impact of his plans to increase student aid. He will take on the special interests to eliminate wasteful and unreliable guaranteed student loans and invest more in helping students succeed in college and complete their degree. And he will make a historic investment in college affordability: together, the American Recovery and Reinvestment Act (ARRA) and the President’s Budget provide about $200 billion in Pell Grant scholarships and tax credits over the next decade.
· Reforming Student Loans: The guaranteed student loan program pays banks and other lenders a guaranteed rate of return and reimburses them for defaults, giving them large profits set by the political process rather than won in a competitive marketplace. The Obama-Biden Administration will expand the alternative Direct Loan program, which is administered by private sector companies selected through a competitive process and paid based upon performance. Direct loans have essentially the same terms for students and are more reliable and efficient. They will save $48 billion over the next decade according to the Office of Management and Budget, which will be reinvested in Pell Grant scholarships for students.
· Restoring Pell Grants to a Strong Foundation for Student Aid: The value of Pell Grants have fallen from 77 percent of the cost of attending a public university to 33 percent over the past three decades. The ARRA invested $17 billion, making it possible to increase Pell by $619 for 7 million students. But these funding increases are only temporary, and without additional resources the value of the maximum Pell Grant will fall by $1,400 in 2011. President Obama is committed to a strong, reliable Pell Grant program. He will make Pell an entitlement, provide $116 billion over the next decade to prevent any drop in the size of Pell Grants, ensure that they continues to grow faster than inflation, and eliminate the frequent budget shortfalls that have plagued the program.
· Cut Taxes on College Tuition: The ARRA created the American Opportunity Tax Credit, which will give millions of families up to $2,500 each to help pay for college. The credit was also expanded to help families too poor to owe income taxes. But the credit expires at the end of 2010. The President’s Budget would make it permanent.
· Make a New Commitment to College Access and Completion: Only 65 percent of students starting at four-year colleges – and 38 percent of students starting at two-year colleges – earn a degree within six years. The President’s Budget includes a five-year, $2.5 billion fund to improve college access and help America ’s colleges and universities graduate more students. The fund will identify, test, and promote what works in boosting college enrollment and persistence.
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