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bush
In the days just after September the 11th, I told the American people that this would be a different war, fought on many fronts. Today, around the world, we make progress on the many fronts. In some cases, we use military force. In others, we're fighting through diplomacy, financial pressure, or special operations. In every case, we will defeat the threats against our country and the civilized world.
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America, along with other nations, will oppose the proliferation of dangerous weapons and technologies. We will proceed with missile defenses to protect the American people, our troops and our friends and allies. And America will take the necessary action to oppose emerging threats.
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Our international coalition against these killers is strong and united and acting. European nations have frozen almost $50 million in suspected terrorist assets, and that's important. Many European states are taking aggressive and effective law enforcement action to join us in rounding up these terrorists and their cells. We're making good progress.
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In the United States of America, the terrorists have chosen a foe unlike they have any -- they have never faced before. They've never faced a country like ours before: we're tough, we're determined, we're relentless. We will stay until the mission is done.
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The demands have a power and momentum of their own, defying all pessimism. And they are destined to change lives and nations on every continent. America has acted on these hopes throughout our history. General George Marshall is admired for the war he fought, yet best remembered for the peace he secured.
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The battles in Afghanistan are not over. American and allied troops are taking risks today in what we call Operation Mountain Lion -- hunting down the al Qaeda and Taliban forces, and keeping them on the run. Coalition naval forces, in the largest combined flotilla since World War II, are patrolling escape routes and intercepting ships to search for terrorists and their supplies.
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Well, thank you all very much for that warm welcome. General Meyer, thank you. General Bunting and General Casey, Secretary Marsh, Congressman Goodlatte, Albert Beveridge, members of the Corps of Cadets, distinguished guests, ladies and gentlemen.
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We're working with Yemen's government to prevent terrorists from reassembling there. We sent troops to help train local forces in the Philippines, to help them defeat terrorists trying to establish a militant regime. And in the Republic of Georgia, we provide temporary help to its military, as it routes out a terrorist cell near the Russian border. Wherever global terror threatens the civilized world, we and our friends and our allies will respond and will respond decisively.
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Americans should also expect that it will take some time for this legislation to have its full impact on our economy. Exercising the authorities in this bill in a responsible way will require a careful analysis and deliberation. This will be done as expeditiously as possible, but it cannot be accomplished overnight. We'll take the time necessary to design an effective program that achieves its objectives -- and does not waste taxpayer dollars.
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Taken together, these steps represent decisive action to ease the credit crunch that is now threatening our economy. With a smoother flow of credit, more businesses will be able to stock their shelves and meet their payrolls. More families will be able to get loans for cars and homes and college education. More state and local governments will be able to fund basic services.
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By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country. We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy.
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Our economy continues to face serious challenges. This morning, we learned that America lost jobs again in September -- disappointing news that underscores the urgency of the bill that Congress passed today. It will take more time and determined effort to get through this difficult period. But with confidence and leadership and bipartisan cooperation, we'll overcome the challenges we face, return our nation to a path of growth, and job creation, and long-term economic prosperity. Thank you.
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Once we have funded our national security and our homeland security, the final great priority of my budget is economic security for the American people. To achieve these great national objectives--to win the war, protect the homeland, and revitalize our economy--our budget will run a deficit that will be small and short term, so long as Congress restrains spending and acts in a fiscally responsible manner. We have clear priorities, and we must act at home with the same purpose and resolve we have shown overseas. We'll prevail in the war, and we will defeat this recession.
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Homeland security will make America not only stronger but, in many ways, better. Knowledge gained from bioterrorism research will improve public health. Stronger police and fire departments will mean safer neighborhoods. Stricter border enforcement will help combat illegal drugs. And as government works to better secure our homeland, America will continue to depend on the eyes and ears of alert citizens.
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States like these and their terrorist allies constitute an axis of evil, arming to threaten the peace of the world. By seeking weapons of mass destruction, these regimes pose a grave and growing danger. They could provide these arms to terrorists, giving them the means to match their hatred. They could attack our allies or attempt to blackmail the United States. In any of these cases, the price of indifference would be catastrophic.
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We'll be deliberate; yet, time is not on our side. I will not wait on events while dangers gather. I will not stand by as peril draws closer and closer. The United States of America will not permit the world's most dangerous regimes to threaten us with the world's most destructive weapons.
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Our cause is just, and it continues. Our discoveries in Afghanistan confirmed our worst fears and showed us the true scope of the task ahead. We have seen the depth of our enemies' hatred in videos where they laugh about the loss of innocent life. And the depth of their hatred is equaled by the madness of the destruction they design. We have found diagrams of American nuclear powerplants and public water facilities, detailed instructions for making chemical weapons, surveillance maps of American cities, and thorough descriptions of landmarks in America and throughout the world.
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My budget nearly doubles funding for a sustained strategy of homeland security, focused on four key areas: bioterrorism, emergency response, airport and border security, and improved intelligence. We will develop vaccines to fight anthrax and other deadly diseases. We'll increase funding to help states and communities train and equip our heroic police and firefighters. We will improve intelligence collection and sharing, expand patrols at our borders, strengthen the security of air travel, and use technology to track the arrivals and departures of visitors to the United States.
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One purpose of the USA Freedom Corps will be homeland security. America needs retired doctors and nurses who can be mobilized in major emergencies, volunteers to help police and fire departments, transportation and utility workers well-trained in spotting danger.
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We last met in an hour of shock and suffering. In four short months, our nation has comforted the victims, begun to rebuild New York and the Pentagon, rallied a great coalition, captured, arrested, and rid the world of thousands of terrorists, destroyed Afghanistan's terrorist training camps, saved a people from starvation, and freed a country from brutal oppression.
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As we gather tonight, our nation is at war; our economy is in recession; and the civilized world faces unprecedented dangers. Yet, the state of our Union has never been stronger.
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Thanks to the work of our law enforcement officials and coalition partners, hundreds of terrorists have been arrested. Yet, tens of thousands of trained terrorists are still at large. These enemies view the entire world as a battlefield, and we must pursue them wherever they are. So long as training camps operate, so long as nations harbor terrorists, freedom is at risk. And America and our allies must not and will not allow it.
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During these last few months, I've been humbled and privileged to see the true character of this country in a time of testing. Our enemies believed America was weak and materialistic, that we would splinter in fear and selfishness. They were as wrong as they are evil.
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The way out of this recession, the way to create jobs, is to grow the economy by encouraging investment in factories and equipment and by speeding up tax relief so people have more money to spend. For the sake of American workers, let's pass a stimulus package.
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Our second goal is to prevent regimes that sponsor terror from threatening America or our friends and allies with weapons of mass destruction. Some of these regimes have been pretty quiet since September 11, but we know their true nature.
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Our progress is a tribute to the spirit of the Afghan people, to the resolve of our coalition, and to the might of the United States military. When I called our troops into action, I did so with complete confidence in their courage and skill. And tonight, thanks to them, we are winning the war on terror. The men and women of our armed forces have delivered a message now clear to every enemy of the United States: Even 7,000 miles away, across oceans and continents, on mountaintops and in caves, you will not escape the justice of this nation.
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Americans know economic security can vanish in an instant without health security. I ask Congress to join me this year to enact a patients' bill of rights, to give uninsured workers credits to help buy health coverage, to approve an historic increase in the spending for veterans' health, and to give seniors a sound and modern Medicare system that includes coverage for prescription drugs.
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Retirement security also depends upon keeping the commitments of Social Security, and we will. We must make Social Security financially stable and allow personal retirement accounts for younger workers who choose them.
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In a single instant, we realized that this will be a decisive decade in the history of liberty, that we've been called to a unique role in human events. Rarely has the world faced a choice more clear or consequential.
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Thank you very much. Mr. Speaker, Vice President Cheney, members of Congress, distinguished guests, fellow citizens:
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For too long our culture has said, "If it feels good, do it." Now America is embracing a new ethic and a new creed, "Let's roll." In the sacrifice of soldiers, the fierce brotherhood of firefighters, and the bravery and generosity of ordinary citizens, we have glimpsed what a new culture of responsibility could look like. We want to be a nation that serves goals larger than self. We've been offered a unique opportunity, and we must not let this moment pass.
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It costs a lot to fight this war. We have spent more than $1 billion a month, over $30 million a day, and we must be prepared for future operations. Afghanistan proved that expensive precision weapons defeat the enemy and spare innocent lives, and we need more of them. We need to replace aging aircraft and make our military more agile to put our troops anywhere in the world quickly and safely. Our men and women in uniform deserve the best weapons, the best equipment, the best training, and they also deserve another pay raise.
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The next priority of my budget is to do everything possible to protect our citizens and strengthen our nation against the ongoing threat of another attack. Time and distance from the events of September 11 will not make us safer unless we act on its lessons. America is no longer protected by vast oceans. We are protected from attack only by vigorous action abroad and increased vigilance at home.
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For many Americans, these four months have brought sorrow and pain that will never completely go away. Every day a retired firefighter returns to Ground Zero to feel closer to his two sons who died there. At a memorial in New York, a little boy left his football with a note for his lost father: "Dear Daddy, please take this to heaven. I don't want to play football until I can play with you again some day."
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Members, you and I will work together in the months ahead on other issues: productive farm policy; a cleaner environment; broader homeownership, especially among minorities; and ways to encourage the good work of charities and faith-based groups. I ask you to join me on these important domestic issues in the same spirit of cooperation we've applied to our war against terrorism.
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Good jobs depend on sound tax policy. Last year, some in this hall thought my tax relief plan was too small; some thought it was too big. But when the checks arrived in the mail, most Americans thought tax relief was just about right. Congress listened to the people and responded by reducing tax rates, doubling the child credit, and ending the death tax. For the sake of long-term growth and to help Americans plan for the future, let's make these tax cuts permanent.
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No nation owns these aspirations, and no nation is exempt from them. We have no intention of imposing our culture. But America will always stand firm for the nonnegotiable demands of human dignity: the rule of law; limits on the power of the state; respect for women; private property; free speech; equal justice; and religious tolerance.
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Last month, at the grave of her husband, Micheal, a CIA officer and marine who died in Mazar-e-Sharif, Shannon Spann said these words of farewell, "Semper Fi, my love." Shannon is with us tonight. Shannon, I assure you and all who have lost a loved one that our cause is just, and our country will never forget the debt we owe Micheal and all who gave their lives for freedom.
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Americans who have lost their jobs need our help, and I support extending unemployment benefits and direct assistance for health care coverage. Yet, American workers want more than unemployment checks; they want a steady paycheck. When America works, America prospers, so my economic security plan can be summed up in one word: jobs.
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My call tonight is for every American to commit at least two years, 4,000 hours over the rest of your lifetime, to the service of your neighbors and your nation. Many are already serving, and I thank you. If you aren't sure how to help, I've got a good place to start. To sustain and extend the best that has emerged in America, I invite you to join the new USA Freedom Corps. The Freedom Corps will focus on three areas of need: responding in case of crisis at home; rebuilding our communities; and extending American compassion throughout the world.
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Steadfast in our purpose, we now press on. We have known freedom's price. We have shown freedom's power. And in this great conflict, my fellow Americans, we will see freedom's victory.
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Our nation will continue to be steadfast and patient and persistent in the pursuit of two great objectives. First, we will shut down terrorist camps, disrupt terrorist plans, and bring terrorists to justice. And second, we must prevent the terrorists and regimes who seek chemical, biological, or nuclear weapons from threatening the United States and the world.
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Good jobs also depend on reliable and affordable energy. This Congress must act to encourage conservation, promote technology, build infrastructure, and it must act to increase energy production at home so America is less dependent on foreign oil.
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Our enemies send other people's children on missions of suicide and murder. They embrace tyranny and death as a cause and a creed. We stand for a different choice, made long ago on the day of our founding. We affirm it again today. We choose freedom and the dignity of every life.
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While the most visible military action is in Afghanistan, America is acting elsewhere. We now have troops in the Philippines, helping to train that country's armed forces to go after terrorist cells that have executed an American and still hold hostages. Our soldiers, working with the Bosnian government, seized terrorists who were plotting to bomb our embassy. Our Navy is patrolling the coast of Africa to block the shipment of weapons and the establishment of terrorist camps in Somalia.
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Our first priority must always be the security of our nation, and that will be reflected in the budget I send to Congress. My budget supports three great goals for America: We will win this war; we will protect our homeland; and we will revive our economy.
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None of us would ever wish the evil that was done on September 11. Yet, after America was attacked, it was as if our entire country looked into a mirror and saw our better selves. We were reminded that we are citizens with obligations to each other, to our country, and to history. We began to think less of the goods we can accumulate and more about the good we can do.
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On my orders, coalition forces have begun striking selected targets of military importance to undermine Saddam Hussein's ability to wage war. These are opening stages of what will be a broad and concerted campaign. More than 35 countries are giving crucial support -- from the use of naval and air bases, to help with intelligence and logistics, to the deployment of combat units. Every nation in this coalition has chosen to bear the duty and share the honor of serving in our common defense.
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We come to Iraq with respect for its citizens, for their great civilization and for the religious faiths they practice. We have no ambition in Iraq, except to remove a threat and restore control of that country to its own people.
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I know that the families of our military are praying that all those who serve will return safely and soon. Millions of Americans are praying with you for the safety of your loved ones and for the protection of the innocent. For your sacrifice, you have the gratitude and respect of the American people. And you can know that our forces will be coming home as soon as their work is done.
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My fellow citizens, the dangers to our country and the world will be overcome. We will pass through this time of peril and carry on the work of peace. We will defend our freedom. We will bring freedom to others and we will prevail.
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I want Americans and all the world to know that coalition forces will make every effort to spare innocent civilians from harm. A campaign on the harsh terrain of a nation as large as California could be longer and more difficult than some predict. And helping Iraqis achieve a united, stable and free country will require our sustained commitment.
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We're seeing similar results all across the southern border. The number of people apprehended for illegally crossing our southern border is down by nearly 30 percent this year. We're making progress. And thanks for your hard work. It's hard work, but necessary work.
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We more than doubled the funding for border security since I've been the President. In other words, it's one thing to hear people come down here and talk; it's another thing for people to come down and do what they say they're going to do. And I want to thank Congress for working on this issue. The funding is increasing manpower. The additional funding is increasing infrastructure, and it's increasing technology.
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I appreciate so very much Senator Jon Kyl. Kyl is one of the most respected United States senators and I'm proud to be with him today -- and glad to give him a ride back to Washington, I might add.
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I had the privilege of going to Artesia, New Mexico, to the training center. It was a fantastic experience to see the young cadets getting ready to come and wear the green of the Border Patrol. By the time we're through, we will have doubled the size of the Border Patrol. In other words, you can't do the job the American people expect unless you got enough manpower, and we're increasing the manpower down here.
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And, therefore, we need to work together to come up with a practical solution to this problem, and I know people in Congress are working hard on this issue. Illegal immigrants who have roots in our country and want to stay should have to pay a meaningful penalty for breaking the law, and pay their taxes, and learn the English language, and show work -- show that they've worked in a job for a number of years. People who meet a reasonable number of conditions and pay a penalty of time and money should be able to apply for citizenship. But approval would not be automatic, and they would have to wait in line behind those who played by the rules and followed the law.
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I had the chance to visit with some of the Guard, and Mr. Mayor, you'll be pleased to hear they like being down here in Yuma, Arizona. They like the people, and they like the mission. More than 600 members of the Guard are serving here in the Yuma Sector. And I thank the Guard, and, equally importantly, I thank their families for standing by the men and women who wear the uniform during this particular mission. You email them back home and tell them how much I appreciate the fact they're standing by you.
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The third element of a comprehensive reform is to hold employers accountable for the workers they hire. In other words, if you want to make sure that we've got a system in which people are not violating the law, then you've got to make sure we hold people to account, like employers. Enforcing immigration is a vital part of any successful reform. And so Chertoff and his department are cracking down on employers who knowingly violate the law.
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It's a problem and we need to address it aggressively. This problem has been growing for decades, and past efforts to address it have failed. These failures helped create a perception that America was not serious about enforcing our immigration laws and that they could be broken without consequence. Past efforts at reform did not do enough to secure our nation's borders. As a result, many people have been able to sneak into this country.
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It is impractical to take the position that, oh, we'll just find the 11 million or 12 million people and send them home. It's just an impractical position; it's not going to work. It may sound good. It may make nice sound bite news. It won't happen.
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This new technology is really important to basically leverage the manpower. Whether it be the technology of surveillance and communication, we're going to make sure the agents have got what is necessary to be able to establish a common picture and get information out to the field as quickly as possible so that those 18,000 agents, when they're finally on station, can do the job the American people expect.
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Now, most of the people we apprehend down here are from Mexico. About 85 percent of the illegal immigrants caught crossing into -- crossing this border are Mexicans -- crossing the southern border are Mexicans. And they're sent home within 24 hours. It's the illegal immigrants from other countries that are not that easy to send home.
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I appreciate what Colburn said -- he puts it this way, they're watching -- "They see us watching them," that's what he said, "and they have decided they just can't get across." And that's part of the effort we're doing. We're saying we're going to make it harder for you, so don't try in the first place.
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The Border Patrol is really an important agency. I know some people are wondering whether or not it makes sense to join the Border Patrol. My answer is, I've gotten to know the Border Patrol, I know the people serving in this fine agency -- I would strongly urge our fellow citizens to take a look at this profession. You're outdoors, you're working with good people, and you're making a solid contribution to the United States of America. And I want to thank you all for wearing the uniform and doing the tough work necessary, the work that the American people expect you to do.
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But not only are there coyotes smuggling people in, there are document forgers that are making a living off these people. So, in other words, people may want to comply with the law, but it's very difficult at times to verify the legal status of their employees. And so to make the work site enforcement practical on a larger scale, we have got to issue a tamper-proof identification card for legal foreign workers.
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We must create a better system for employers to verify the he legality of the workers. In other words, we got work to do. And part of a comprehensive bill is to make sure work site enforcement is effective.
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We've worked with our nation's governors to deploy 6,000 National Guard members to provide the Border Patrol with immediate reinforcements. In other words, it takes time to train the Border Patrol, and until they're fully trained, we've asked the Guard to come down. It's called Operation Jump Start, and the Guard down here is serving nobly.
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Last May, I visited this section of the border, and it was then that I talked about the need for our government to give you the manpower and resources you need to do your job. We were understaffed here. We weren't using enough technology to enable those who work here to be able to do the job the American people expect. I Returned to check on the progress, to make sure that the check wasn't in the mail -- it, in fact, had been delivered.
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I appreciate members of the congressional delegation who have joined us: John Shadegg; Jeff Flake -- from Snowflake, Arizona, I want you to know -- and I appreciate you working on this immigration issue; Congressman Trent Franks, and Congressman Harry Mitchell. I appreciate you all taking time for being with me here today, it means a lot that you'd come.
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The second element of a comprehensive immigration reform is a temporary worker program. You cannot fully secure the border until we take pressure off the border. And that requires a temporary worker program. It seems to make sense to me that if you've got people coming here to do jobs Americans aren't doing, we need to figure out a way that they can do so in a legal basis for a temporary period of time. And that way our Border Patrol can chase the criminals and the drug runners, potential terrorists, and not have to try to chase people who are coming here to do work Americans are not doing.
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My administration understood that America could not retreat in the face of terror. And we knew that if we did not act, the violence that had been consuming Iraq would worsen and spread and could eventually reach genocidal levels. Baghdad could have disintegrated into a contagion of killing, and Iraq could have descended into full-blown sectarian warfare.
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Five years into this battle, there is an understandable debate over whether the war was worth fighting; whether the fight is worth winning; and whether we can win it. The answers are clear to me: Removing Saddam Hussein from power was the right decision, and this is a fight America can and must win.
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The battle in Iraq has been longer and harder and more costly than we anticipated, but it is a fight we must win. So our troops have engaged these enemies with courage and determination. And as they've battled the terrorists and extremists in Iraq, they have helped the Iraqi people reclaim their nation and helped a young democracy rise from the rubble of Saddam Hussein's tyranny.
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The challenge in this period ahead is to consolidate the gains we have made and seal the extremists' defeat. We have learned through hard experience what happens when we pull our forces back too fast; the terrorists and extremists step in, they fill vacuums, establish safe havens, and use them to spread chaos and carnage. General Petraeus has warned that too fast a drawdown could result in such an unraveling with Al Qaida and insurgents and militia extremists regaining lost ground and increasing violence.
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As we have fought Al Qaida, coalition and Iraqi forces have also taken the fight to Shi'a extremist groups, many of them backed and financed and armed by Iran. A year ago, these groups were on the rise. Today, they are increasingly isolated, and Iraqis of all faiths are putting their lives on the line to stop these extremists from hijacking their young democracy.
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We will stay on the offense. But in the long run, defeating the terrorists requires an alternative to their murderous ideology. And there we have another advantage. We've got a singular advantage with our military when it comes to finding the terrorists and bringing them to justice. And we have another advantage in our strong belief in the transformative power of liberty.
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Thank you all. Deputy Secretary England, thanks for the introduction. One boss may not be here, but the other one is. I appreciate your kind words. I'm pleased to be back here with the men and women of the Defense Department.
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When Americans like Spanky Gibson serve on our side, the enemy in Iraq doesn't got a chance. We're grateful to all the brave men and women of our military who have served the cause of freedom. You've done the hard work, far from home and far from your loved ones. We give thanks for all our military families who love you and have supported you in this mission.
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On this day in 2003, the United States began Operation Iraqi Freedom. As the campaign unfolded, tens and thousands of our troops poured across the Iraqi border to liberate the Iraqi people and remove a regime that threatened free nations.
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Successes we are seeing in Iraq are undeniable, yet some in Washington still call for retreat. War critics can no longer credibly argue that we're losing in Iraq, so they now argue the war costs too much. In recent months, we've heard exaggerated amounts of the costs of this war. No one are--would argue that this war has not come at a high cost in lives and treasure; but those costs are necessary when we consider the cost of a strategic victory for our enemies in Iraq.
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Next month, General Petraeus and Ambassador Crocker will come to Washington to testify before Congress. I will await their recommendations before making decisions on our troop levels in Iraq. Any further drawdown will be based on conditions on the ground and the recommendations of our commanders. And they must not jeopardize the hard-fought gains our troops and civilians have made over the past year.
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To allow this to happen would be to ignore the lessons of September the 11th and make it more likely that America would suffer another attack like the one we experienced that day; a day in which 19 armed men with box cutters killed nearly 3,000 people in our--on our soil; a day after which, in the following of that attack, more than a million Americans lost work, lost their jobs. The terrorists intend even greater harm to our country. And we have no greater responsibility than to defeat our enemies across the world so that they cannot carry out such an attack.
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Along the way, our troops added new chapters to the story of American military heroism. During these first weeks of battle, Army Sergeant First Class Paul Ray Smith and his troops came under a surprise attack by about a hundred Republican Guard forces. Sergeant Smith rallied his men. He led a counterattack, killing as many as 50 enemy soldiers before being fatally wounded. His actions saved the lives of more than a hundred American troops and earned him the Medal of Honor.
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So we reviewed the strategy and changed course in Iraq. We sent reinforcements into the country in a dramatic policy shift that is now known as the surge. General David Petraeus took command with a new mission: Work with Iraqi forces to protect the Iraqi people; pressure the enemy into strongholds; and deny the terrorists sanctuary anywhere in the country. And that is precisely what we have done.
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If we were to allow our enemies to prevail in Iraq, the violence that is now declining would accelerate, and Iraq would descend into chaos. Al Qaida would regain its lost sanctuaries and establish new ones, fomenting violence and terror that could spread beyond Iraq's borders, with serious consequences for the world's economy.
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What our troops found in Iraq following Saddam's removal was horrifying. They uncovered children's prisons and torture chambers and rape rooms where Iraqi women were violated in front of their families. They found videos showing regime thugs mutilating Iraqis deemed disloyal to Saddam. And across the Iraqi countryside, they uncovered mass graves of thousands executed by the regime.
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As our coalition fights the enemy in Iraq, we've stayed on the offensive on other fronts in the war on terror. You know, just a few weeks after commencing Operation Iraqi Freedom, U. S. forces captured Khalid Sheikh Mohammed, the mastermind behind the September the 11th terrorist attacks; we got him in Pakistan. About the same time as we launched Operation Iraqi Freedom, coalition forces thousands of--hundreds of miles away launched an assault on the terrorists in the mountains of southern Afghanistan in an operation called Operation Valiant Strike.
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This bill passed the Congress because of the strong leadership of a handful of members, starting with the Speaker of the House Denny Hastert. Mr. Speaker -- Mr. Speaker was joined by Senator Bill Frist, the Senate Majority Leader of the Senate, in providing the leadership necessary to get this bill done. I want to thank you both.
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Medicare is a great achievement of a compassionate government and it is a basic trust we honor. Medicare has spared millions of seniors from needless hardship. Each generation benefits from Medicare. Each generation has a duty to strengthen Medicare. And this generation is fulfilling our duty.
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The new law offers special help to one-third of older Americans will low incomes, such as a senior couple with low savings and an annual income of about $18,000 or less. These seniors will pay little or no premium for full drug coverage. Their deductible will be no higher than $50 per year, and their co-payment on each prescription will be as little as $1. Seniors in the greatest need will have the greatest help under the modernized Medicare system.
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First and foremost, this new law will provide Medicare coverage for prescription drugs. Medicare was enacted to provide seniors with the latest in modern medicine. In 1965, that usually meant house calls, or operations, or long hospital stays. Today, modern medicine includes out-patient care, disease screenings, and prescription drugs.
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I appreciate the hard work of the House Majority Leader, Tom DeLay, in seeing that this bill was passed. I also appreciate the hard work of the Chairman of the Ways and Means Committee, Chairman Bill Thomas, for his good work. The Chairman of the Finance Committee in the Senate, Senator Chuck Grassley, did a noble job. And he was joined in this task by the Ranking Member of the Finance Committee, Senator Max Baucus of Montana.
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A third purpose achieved by this legislation is smarter medicine within the Medicare system. For years, our seniors have been denied Medicare coverage -- have been denied Medicare coverage for a basic physical exam. Beginning in 2005, all newly-enrolled Medicare beneficiaries will be covered for a complete physical.
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With the Medicare Act of 2003, our government is finally bringing prescription drug coverage to the seniors of America. With this law, we're giving older Americans better choices and more control over their health care, so they can receive the modern medical care they deserve. With this law, we are providing more access to comprehensive exams, disease screenings, and other preventative care, so that seniors across this land can live better and healthier lives. With this law, we are creating Health Savings Accounts we do so, so that all Americans can put money away for their health care tax-free.
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Fourth, the new law will help all Americans pay for out-of-pocket health costs. This legislation will create health savings accounts, effective January 1, 2004, so Americans can set aside up to $4,500 every year, tax free, to save for medical expenses. Depending on your tax bracket, that means you'll save between 10 to 35 percent on any costs covered by money in your account. Our laws encourage people to plan for retirement and to save for education. Now the law will make it easier for Americans to save for their future health care, as well.
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bush
This coming spring, seniors will receive a letter to explain the drug discount card. In June, these cards, including the $600 annual drug credit for low-income seniors, will be activated. This drug card can be used until the end of 2005. In the fall of that year, seniors will receive an information booklet giving simple guidance on changes in the program and the new choices they will have. Then in January of 2006, seniors will have their new coverage, including permanent coverage for prescription drugs.
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bush
Good morning, thanks for the warm welcome. In a few moments I will have the honor of signing an historic act of Congress into law. I'm pleased that all of you are here to witness the greatest advance in health care coverage for America's seniors since the founding of Medicare.
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bush
The point man in my administration on this issue was Secretary Tommy Thompson, and he and his team did a fabulous job of working with the Congress to get this important piece of legislation passed. Tommy, I want to thank you for your leadership.
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bush
In about two years, full prescription coverage under Medicare will begin. In return for a monthly premium of about $35, most seniors without any prescription drug coverage can now expect to see their current drug bills cut roughly in half. This new law will provide 95 percent coverage for out-of-pocket drug spending that exceeds $3,600 a year. For the first time, we're giving seniors peace of mind that they will not have to face unlimited expenses for their medicine.
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