Bush Makes Case for Social Security Plan

President Bush arrives on the floor of the Congress to deliver the State of the Union speech. Behind him are House Speaker J. Dennis Hastert (R-Ill.), left, and Vice President Cheney. (Melina Mara -- The Washington Post)

The personal accounts outlined by Bush would offer a sharp departure from the system of guaranteed benefits that have been a hallmark of Social Security since it was signed into law by Franklin D. Roosevelt in 1935. Bush's proposals also signal a potential shift in the traditionally progressive nature of the program, which for years has returned a larger proportion of contributions to low-income workers than to higher wage earners.

Bush's plan calls for personal accounts to be phased in beginning in 2009, when workers born in 1965 and earlier would be eligible. The next year, workers born before 1978 would be able to invest, and finally, in 2011, all workers born after 1950 would be eligible for the accounts. A senior official who briefed reporters on the plan said it would cost the government $700 billion in additional debt because of the diverted payroll taxes.

Bush did not refer to the cost in his address and did not try to reconcile it with his call for greater fiscal discipline elsewhere in his next budget, which will virtually freeze discretionary spending unrelated to the military or homeland security.

On other domestic matters, Bush called on Congress to pass his long-stalled energy proposal, which includes the expanded use of nuclear power and increased oil and gas exploration in environmentally sensitive areas. "Four years of debate is enough," he said. And he reiterated support for a constitutional amendment banning same-sex marriage, an issue that he has not pushed vigorously. "For the good of families, children and society, I support a constitutional amendment to protect the institution of marriage," he said.

He also unveiled a new $150 million initiative led by first lady Laura Bush to discourage young people -- particularly boys -- from falling into gang life, and he announced plans to provide training for defense lawyers in death penalty cases and to expand use of DNA evidence to prevent wrongful convictions.

On foreign policy, Bush put on display what he considers two of his biggest achievements in the form of a pair of women, one from Afghanistan and one from Iraq, who voted in democratic elections in their home countries over the past few months. Sitting in the gallery next to Laura Bush, the two women were greeted by prolonged applause.

"We are witnessing landmark events in the history of liberty," he said. "And in the coming years, we will add to that story."

Bush said the election of a new president of the Palestinian Authority will create opportunities "to break old patterns of violence and failure" in the Middle East and vowed $350 million to support Palestinian security and political institutions. "The goal of two democratic states, Israel and Palestine, living side by side in peace is within reach -- and America will help them achieve that goal," he said.

Aides, however, said they could not provide a breakdown of the spending. As much of $80 million may be provided to Israel to help pay for high-tech security crossings at fences surrounding Gaza and the West Bank, congressional officials said. The United States currently provides $75 million a year to the Palestinians.

Otherwise, Bush unveiled no new substantive foreign policy initiatives. He vowed to stay the course in Iraq, training Iraqi security forces to take on the fight against insurgents so U.S. forces could shift into "a supporting role," although he prepared the public for further casualties.

"The terrorists and insurgents are violently opposed to democracy and will continue to attack it," he said. "Yet the terrorists' most powerful myth is being destroyed. The whole world is seeing that the car bombers and assassins are not only fighting coalition forces, they are trying to destroy the hopes of Iraqis, expressed in free elections."

Although he talked at length about Iraq, he did not dwell on al Qaeda and made no mention of the frustrated hunt for Osama bin Laden. But he took care to challenge nations that he accused of assisting terrorists. "We expect the Syrian government to end all support for terror and open the door to freedom," he said. "Today, Iran remains the world's primary state sponsor of terror -- pursuing nuclear weapons while depriving its people of the freedom they seek and deserve."

Bush said he will continue working with European allies on a diplomatic solution to curbing Iran's nuclear ambitions. But he encouraged dissidents in Iran. "To the Iranian people, I say tonight: As you stand for your own liberty, America stands with you."

In softer tones, he urged two longtime allies to liberalize their repressive political systems. "The government of Saudi Arabia can demonstrate its leadership in the region by expanding the role of its people in determining their future," he said. "And the great and proud nation of Egypt, which showed the way toward peace in the Middle East, can now show the way toward democracy in the Middle East."

Staff writer Glenn Kessler contributed to this report.