Bush Touts Iraq Progress, Economic Plan

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President Bush Delivers 2008 State of the Union Address

President Bush speaks to the nation Monday night in the 2008 State of the Union Address.

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The top two congressional leaders, House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry M. Reid (D-Nev.) offered faint praise for Bush. "We agree with the President that we must work together to make progress on our most pressing challenges," they said in a statement. "Yet, tonight, the President offered little more than the status quo. At a time when our economy is on shaky ground and our leadership around the world is eroding, the status quo won't do."

Bush made clear to Democrats that he intends to employ fully the powers of the presidency until his final hours in office. He reiterated his demand that they approve new surveillance legislation by Friday, when a temporary wiretapping law is set to expire. He also said he will use his veto pen and administrative powers to try to rein in the proliferation of "earmarks," the projects inserted by lawmakers into annual spending bills and totaling roughly $17 billion in the last budget.

Bush warned he would veto any spending bill that does not cut in half the number and cost of earmarks from the year before. He also said he will sign an executive order requiring agencies to ignore any earmark not included in the language of legislation. "The people's trust in their government is undermined by congressional earmarks," Bush said.

Bush's pledge was met with skepticism from many Democrats and even some in the GOP, who noted that the practice increased dramatically while Republicans controlled Congress. "The number of earmarks exploded under Republican leadership in the House, and for six years President Bush did nothing to slow their growth," said House Majority Leader Steny H. Hoyer (D-Md.).

In keeping with the traditional civility of the occasion, Bush was greeted warmly as he entered the House chamber. Among the lawmakers present were two of his would-be Democratic successors, Sen. Hillary Rodham Clinton (N.Y.) and Sen. Barack Obama (Ill.).

The White House invited a customary mix of prominent and ordinary citizens to sit with first lady Laura Bush as a way of humanizing some of the broader themes of the president's speech. Last night, the guests included a single mother from Tanzania who benefited from the U.S. global AIDS initiative; the co-chairs of his commission on health care for veterans; and several troops who served with valor in Iraq and elsewhere. Bush did not introduce any of the guests, as he and past presidents have done.

Bush devoted special attention to the two main issues that could shape long-term perspectives on his presidency: the souring economy and the war in Iraq.

On Iraq, Bush made clear he is not ready to accelerate a drawdown of U.S. forces, which are scheduled to return to pre-"surge" levels of 130,000 by mid-summer. He cited a warning from Gen. David H. Petraeus, the top U.S. commander in Iraq, that pulling troops out too quickly risks the recovery of al-Qaeda in Iraq and an increase in violence.

"Members of Congress," he said, "having come so far and achieved so much, we must not allow this to happen."

Democrats challenged Bush's upbeat portrait of conditions in Iraq. While even critics concede violence has ebbed because of the troop increase, many military experts are unsure whether this is a temporary phenomenon. And even senior U.S. military commanders are concerned that the military progress has not been matched by steps to forge a more lasting political accord.

Bush renewed his call to strengthen the No Child Left Behind Act, which set up a system of testing and other benchmarks for the nation's schools, and urged Congress to ratify trade agreements with Colombia, Panama and South Korea. He also promised that the United States will do "everything we can" to achieve a peace deal between Palestinians and Israelis, which has become a major goal in his final year in office.

Bush also proposed to contribute $2 billion over three years to an international clean-energy fund. He will seek additional funds from countries such as Britain and Japan, and a donors' committee will dole the money out in the form of grants, loans and loan guarantees. The money would probably go to firms selling such things as energy-efficient coal plants and would help make those less expensive for buyers from developing countries.

Staff writers Paul Kane, Lyndsey Layton and Steven Mufson contributed to this report.