Speech Transcript:

 As this 92d Congress begins its session, America has lost a great
Senator, and all of us who had the privilege to know him have lost a
loyal friend. I had the privilege of visiting Senator Russell in the
hospital just a few days before he died. He never spoke about
himself. He only spoke eloquently about the need for a strong
national defense.

In tribute to one of the most magnificent Americans of all time, I
respectfully ask that all those here will rise in silent prayer for
Senator Russell.

Thank you.

Mr. Speaker, before I begin my formal address, I want to use this
opportunity to congratulate all of those who were winners in the
rather for leadership positions in the House and winners in the
Senate and, also, to express my condolences to the losers. I know how
both of you feel.

And I particularly want to join with all of the Members of the House
and the Senate as well in congratulating the new Speaker of the
United States Congress.

To those new Members of this House who may have some doubts about the
possibilities for advancement in the years ahead, I would remind you
that the Speaker and I met just 24 years ago in this Chamber as
freshmen Members of the 80th Congress. As you see, we both have come
up in the world a bit since then.

Mr. Speaker, this 92d Congress has a chance to be recorded as the
greatest Congress in America's history.

In these troubled years just past, America has been going through a
long nightmare of war and division, of crime and inflation. Even more
deeply, we have gone through a long, dark night of the American
spirit. But now that night is ending. Now we must let our spirits
soar again. Now we are ready for the lift of a driving dream.

The people of this Nation are eager to get on with the quest for new
greatness. They see challenges, and they are prepared to meet those
challenges. It is for us here to open the doors that will set free
again the real greatness of this Nation-- the genius of the American
people.

How shall we meet this challenge? How can we truly open the doors,
and set free the full genius of our people?

The way in which the 92d Congress answers these questions will
determine its place in history. More importantly, it can determine
this Nation's place in history as we enter the third century of our
independence.

Tonight I shall present to the Congress six great goals. I shall ask
not simply for more new programs in the old framework. I shall ask to
change the framework of government itself--to reform the entire
structure of American government so we can make it again fully
responsive to the needs and the wishes of the American people.

If we act boldly--if we seize this moment and achieve these goals--we
can close the gap between promise and performance in American
government. We can bring together the resources of this Nation and
the spirit of the American people.

In discussing these great goals, I shall deal tonight only with
matters on the domestic side of the Nation's agenda. I shall make a
separate report to the Congress and the Nation next month on
developments in foreign policy.

The first of these great goals is already before the Congress.

I urge that the unfinished business of the 91st Congress be made the
first priority business of the 92d Congress.

Over the next 2 weeks, I will call upon Congress to take action on
more than 35 pieces of proposed legislation on which action was not
completed last year.

The most important is welfare reform.

The present welfare system has become a monstrous, consuming
outrage--an outrage against the community, against the taxpayer, and
particularly against the children it is supposed to help.

We may honestly disagree, as we do, on what to do about it. But we
can all agree that we must meet the challenge, not by pouring more
money into a bad program, but by abolishing the present welfare
system and adopting a new one.

So let us place a floor under the income of every family with
children in America-- and without those demeaning, soul-stifling
affronts to human dignity that so blight the lives of welfare
children today. But let us also establish an effective work incentive
and an effective work requirement.

Let us provide the means by which more can help themselves. This
shall be our goal.

Let us generously help those who are not able to help themselves. But
let us stop helping those who are able to help themselves but refuse
to do so.

The second great goal is to achieve what Americans have not enjoyed
since 1957--full prosperity in peacetime.

The tide of inflation has turned. The rise in the cost of living,
which had been gathering dangerous momentum in the late sixties, was
reduced last year. Inflation will be further reduced this year.

But as we have moved from runaway inflation toward reasonable price
stability and at the same time as we have been moving from a wartime
economy to a peacetime economy, we have paid a price in increased
unemployment.

We should take no comfort from the fact that the level of
unemployment in this transition from a wartime to a peacetime economy
is lower than in any peacetime year of the sixties.

This is not good enough for the man who is unemployed in the
seventies. We must do better for workers in peacetime and we will do
better.

To achieve this, I will submit an expansionary budget this year--one
that will help stimulate the economy and thereby open up new job
opportunities for millions of Americans.

It will be a full employment budget, a budget designed to be in
balance if the economy were operating at its peak potential. By
spending as if we were at full employment, we will help to bring
about full employment.

I ask the Congress to accept these expansionary policies--to accept
the concept of a full employment budget. At the same time, I ask the
Congress to cooperate in resisting expenditures that go beyond the
limits of the full employment budget. For as we wage a campaign to
bring about a widely shared prosperity, we must not reignite the
fires of inflation and so undermine that prosperity.

With the stimulus and the discipline of a full employment budget,
with the commitment of the independent Federal Reserve System to
provide fully for the monetary needs of a growing economy, and with a
much greater effort on the part of labor and management to make their
wage and price decisions in the light of the national interest and
their own self-interest-- then for the worker, the farmer, the
consumer, for Americans everywhere we shall gain the goal of a new
prosperity: more jobs, more income, more profits, without inflation
and without war.

This is a great goal, and one that we can achieve together.

The third great goal is to continue the effort so dramatically begun
last year: to restore and enhance our natural environment.

Building on the foundation laid in the 37-point program that I
submitted to Congress last year, I will propose a strong new set of
initiatives to clean up our air and water, to combat noise, and to
preserve and restore our surroundings.

I will propose programs to make better use of our land, to encourage
a balanced national growth--growth that will revitalize our rural
heartland and enhance the quality of life in America.

And not only to meet today's needs but to anticipate those of
tomorrow, I will put forward the most extensive program ever proposed
by a President of the United States to expand the Nation's parks,
recreation areas, open spaces, in a way that truly brings parks to
the people where the people are. For only if we leave a legacy of
parks will the next generation have parks to enjoy.

As a fourth great goal, I will offer a far-reaching set of proposals
for improving America's health care and making it available more
fairly to more people.

I will propose:

A program to insure that no American family will be prevented from
obtaining basic medical care by inability to pay.

I will propose a major increase in and redirection of aid to medical
schools, to greatly increase the number of doctors and other health
personnel.

Incentives to improve the delivery of health services, to get more
medical care resources into those areas that have not been adequately
served, to make greater use of medical assistants, and to slow the
alarming rise in the costs of medical care.

New programs to encourage better preventive medicine, by attacking
the causes of disease and injury, and by providing incentives to
doctors to keep people well rather than just to treat them when they
are sick.

I will also ask for an appropriation of an extra $100 million to
launch an intensive campaign to find a cure for cancer, and I will
ask later for whatever additional funds can effectively be used. The
time has come in America when the same kind of concentrated effort
that split the atom and took man to the moon should be turned toward
conquering this dread disease. Let us make a total national
commitment to achieve this goal.

America has long been the wealthiest nation in the world. Now it is
time we became the healthiest nation in the world.

The fifth great goal is to strengthen and to renew our State and
local governments.

As we approach our 200th anniversary in 1976, we remember that this
Nation launched itself as a loose confederation of separate States,
without a workable central government. At that time, the mark of its
leaders' vision was that they quickly saw the need to balance the
separate powers of the States with a government of central powers.

And so they gave us a constitution of balanced powers, of unity with
diversity-- and so clear was their vision that it survives today as
the oldest written constitution still in force in the world.

For almost two centuries since--and dramatically in the 1930's--at
those great turning points when the question has been between the
States and the Federal Government, that question has been resolved in
favor of a stronger central Federal Government.

During this time the Nation grew and the Nation prospered. But one
thing history tells us is that no great movement goes in the same
direction forever. Nations change, they adapt, or they slowly die.

The time has now come in America to reverse the flow of power and
resources from the States and communities to Washington, and start
power and resources flowing back from Washington to the States and
communities and, more important, to the people all across America.

The time has come for a new partnership between the Federal
Government and the States and localities--a partnership in which we
entrust the States and localities with a larger share of the Nation's
responsibilities, and in which we share our Federal revenues with them
so that they can meet those responsibilities.

To achieve this goal, I propose to the Congress tonight that we enact
a plan of revenue sharing historic in scope and bold in concept.

All across America today, States and cities are confronted with a
financial crisis. Some have already been cutting back on essential
services--for example, just recently San Diego and Cleveland cut back
on trash collections. Most are caught between the prospects of
bankruptcy on the one hand and adding to an already crushing tax
burden on the other.

As one indication of the rising costs of local government, I
discovered the other day that my home town of Whittier, California--
which has a population of 67,000-- has a larger budget for 1971 than
the entire Federal budget was in 1791.

Now the time has come to take a new direction, and once again to
introduce a new and more creative balance to our approach to
government.

So let us put the money where the needs are. And let us put the power
to spend it where the people are.

I propose that the Congress make a $16 billion investment in renewing
State and local government. Five billion dollars of this will be in
new and unrestricted funds to be used as the States and localities
see fit. The other $11 billion will be provided by allocating $1
billion of new funds and converting one-third of the money going to
the present narrow-purpose aid programs into Federal revenue sharing
funds for six broad purposes--for urban development, rural
development, education, transportation, job training, and law
enforcement-- but with the States and localities making their own
decisions on how it should be spent within each category.

For the next fiscal year, this would increase total Federal aid to
the States and localities more than 25 percent over the present
level.

The revenue sharing proposals I send to the Congress will include the
safeguards against discrimination that accompany all other Federal
funds allocated to the States. Neither the President nor the Congress
nor the conscience of this Nation can permit money which comes from
all the people to be used in a way which discriminates against some
of the people.

The Federal Government will still have a large and vital role to play
in achieving our national progress. Established functions that are
clearly and essentially Federal in nature will still be performed by
the Federal Government. New functions that need to be sponsored or
performed by the Federal Government--such as those I have urged
tonight in welfare and health--will be added to the Federal agenda.
Whenever it makes the best sense for us to act as a whole nation, the
Federal Government should and will lead the way. But where States or
local governments can better do what needs to be done, let us see
that they have the resources to do it there.

Under this plan, the Federal Government will provide the States and
localities with more money and less interference-- and by cutting
down the interference the same amount of money will go a lot
further.

Let us share our resources.

Let us share them to rescue the States and localities from the brink
of financial crisis.

Let us share them to give homeowners and wage earners a chance to
escape from ever-higher property taxes and sales taxes.

Let us share our resources for two other reasons as well.

The first of these reasons has to do with government itself, and the
second has to do with each of us, with the individual.

Let's face it. Most Americans today are simply fed up with government
at all levels. They will not--and they should not--continue to
tolerate the gap between promise and performance in government.

The fact is that we have made the Federal Government so strong it
grows musclebound and the States and localities so weak they approach
impotence.

If we put more power in more places, we can make government more
creative in more places. That way we multiply the number of people
with the ability to make things happen--and we can open the way to a
new burst of creative energy throughout America.

The final reason I urge this historic shift is much more personal,
for each and for every one of us.

As everything seems to have grown bigger and more complex in America,
as the forces that shape our lives seem to have grown more distant and
more impersonal, a great feeling of frustration has crept across this
land.

Whether it is the workingman who feels neglected, the black man who
feels oppressed, or the mother concerned about her children, there
has been a growing feeling that "Things are in the saddle, and ride
mankind."

Millions of frustrated young Americans today are crying out--asking
not what will government do for me, but what can I do, how can I
contribute, how can I matter?

And so let us answer them. Let us say to them and let us say to all
Americans, "We hear you. We will give you a chance. We are going to
give you a new chance e more to say about the decisions that affect
your future--a chance to participate in government--because we are
going to provide more centers of power where what you do can make a
difference that you can see and feel in your own life and the life of
your whole community."

The further away government is from people, the stronger government
becomes and the weaker people become. And a nation with a strong
government and a weak people is an empty shell.

I reject the patronizing idea that government in Washington, D.C., is
inevitably more wise, more honest, and more efficient than government
at the local or State level. The honesty and efficiency of government
depends on people. Government at all levels has good people and bad
people. And the way to get more good people into government is to
give them more opportunity to do good things.

The idea that a bureaucratic elite in Washington knows best what is
best for people everywhere and that you cannot trust local
governments is really a contention that you cannot trust people to
govern themselves. This notion is completely foreign to the American
experience. Local government is the government closest to the people,
it is most responsive to the individual person. It is people's
government in a far more intimate way than the Government in
Washington can ever be.

People came to America because they wanted to determine their own
future rather than to live in a country where others determined their
future for them.

What this change means is that once again in America we are placing
our trust in people.

I have faith in people. I trust the judgment of people. Let us give
the people of America a chance, a bigger voice in deciding for
themselves those questions that so greatly affect their lives.

The sixth great goal is a complete reform of the Federal Government
itself.

Based on a long and intensive study with the aid of the best advice
obtainable, I have concluded that a sweeping reorganization of the
executive branch is needed if the Government is to keep up with the
times and with the needs of the people.

I propose, therefore, that we reduce the present 12 Cabinet
Departments to eight.

I propose that the Departments of State, Treasury, Defense, and
Justice remain, but that all the other departments be consolidated
into four: Human Resources, Community Development, Natural Resources,
and Economic Development.

Let us look at what these would be:

First, a department dealing with the concerns of people--as
individuals, as members of a family--a department focused on human
needs.

Second, a department concerned with the community--rural communities
and urban communities-- and with all that it takes to make a
community function as a community.

Third, a department concerned with our physical environment, with the
preservation and balanced use of those great natural resources on
which our Nation depends.

And fourth, a department concerned with our prosperity--with our
jobs, our businesses, and those many activities that keep our economy
running smoothly and well.

Under this plan, rather than dividing up our departments by narrow
subjects, we would organize them around the great purposes of
government. Rather than scattering responsibility by adding new
levels of bureaucracy, we would focus and concentrate the
responsibility for getting problems solved.

With these four departments, when we have a problem we will know
where to go--and the department will have the authority and the
resources to do something about it.

Over the years we have added departments and created agencies at the
Federal level, each to serve a new constituency, to handle a
particular task--and these have grown and multiplied in what has
become a hopeless confusion of form and function.

The time has come to match our structure to our purposes--to look
with a fresh eye, to organize the Government by conscious,
comprehensive design to meet the new needs of a new era.

One hundred years ago, Abraham Lincoln stood on a battlefield and
spoke of a "government of the people, by the people, for the people."
Too often since then, we have become a nation of the Government, by
the Government, for the Government.

By enacting these reforms, we can renew that principle that Lincoln
stated so simply and so well.

By giving everyone's voice a chance to be heard, we will have
government that truly is of the people.

By creating more centers of meaningful power, more places where
decisions that really count can be made, by giving more people a
chance to do something, we can have government that truly is by the
people.

And by setting up a completely modern, functional system of
government at the national level, we in Washington will at last be
able to provide government that is truly for the people.

I realize that what I am asking is that not only the executive branch
in Washington but that even this Congress will have to change by
giving up some of its power.

Change is hard. But without change there can be no progress. And for
each of us the question then becomes, not "Will change cause me
inconvenience?" but "Will change bring progress for America?"

Giving up power is hard. But I would urge all of you, as leaders of
this country, to remember that the truly revered leaders in world
history are those who gave power to people, and not those who took it
away.

As we consider these reforms we will be acting, not for the next 2
years or for the next 10 years, but for the next 100 years.

So let us approach these six great goals with a sense not only of
this moment in history but also of history itself.

Let us act with the willingness to work together and the vision and
the boldness and the courage of those great Americans who met in
Philadelphia almost 190 years ago to write a constitution.

Let us leave a heritage as they did--not just for our children but
for millions yet unborn--of a nation where every American will have a
chance not only to live in peace and to enjoy prosperity and
opportunity but to participate in a system of government where he
knows not only his votes but his ideas count--a system of government
which will provide the means for America to reach heights of
achievement undreamed of before.

Those men who met at Philadelphia left a great heritage because they
had a vision--not only of what the Nation was but of what it could
become.

As I think of that vision, I recall that America was founded as the
land of the open door--as a haven for the oppressed, a land of
opportunity, a place of refuge, of hope.

When the first settlers opened the door of America three and a half
centuries ago, they came to escape persecution and to find
opportunity--and they left wide the door of welcome for others to
follow.

When the Thirteen Colonies declared their independence almost two
centuries ago, they opened the door to a new vision of liberty and of
human fulfillment--not just for an elite but for all.

To the generations that followed, America's was the open door that
beckoned millions from the old world to the new in search of a better
life, a freer life, a fuller life, and in which, by their own
decisions, they could shape their own destinies.

For the black American, the Indian, the Mexican-American, and for
those others in our land who have not had an equal chance, the Nation
at last has begun to confront the need to press open the door of full
and equal opportunity, and of human dignity.

For all Americans, with these changes I have proposed tonight we can
open the door to a new era of opportunity. We can open the door to
full and effective participation in the decisions that affect their
lives. We can open the door to a new partnership among governments at
all levels, between those governments and the people themselves. And
by so doing, we can open wide the doors of human fulfillment for
millions of people here in America now and in the years to come.

In the next few weeks I will spell out in greater detail the way I
propose that we achieve these six great goals. I ask this Congress to
be responsive. If it is, then the 92d Congress, your Congress, our
Congress, at the end of its term, will be able to look back on a
record more splendid than any in our history.

This can be the Congress that helped us end the longest war in the
Nation's history, and end it in a way that will give us at last a
genuine chance to enjoy what we have not had in this century: a full
generation of peace.

This can be the Congress that helped achieve an expanding economy,
with full employment and without inflation--and without the deadly
stimulus of war.

This can be the Congress that reformed a welfare system that has
robbed recipients of their dignity and robbed States and cities of
their resources.

This can be the Congress that pressed forward the rescue of our
environment, and established for the next generation an enduring
legacy of parks for the people.

This can be the Congress that launched a new era in American
medicine, in which the quality of medical care was enhanced while the
costs were made less burdensome.

But above all, what this Congress can be remembered for is opening
the way to a new American revolution--a peaceful revolution in which
power was turned back to the people--in which government at all
levels was refreshed and renewed and made truly responsive. This can
be a revolution as profound, as far-reaching, as exciting as that
first revolution almost 200 years ago--and it can mean that just 5
years from now America will enter its third century as a young nation
new in spirit, with all the vigor and the freshness with which it
began its first century.

My colleagues in the Congress, these are great goals. They can make
the sessions of this Congress a great moment for America. So let us
pledge together to go forward together--by achieving these goals to
give America the foundation today for a new greatness tomorrow and in
all the years to come, and in so doing to make this the greatest
Congress in the history of this great and good country.