(Bloomberg) — President Joe Biden delivered his first State of the Union address to Congress, set against the turmoil of Russia invading Ukraine, surging inflation, deadlock over his domestic legislative agenda, bitter political divisions in the country and lingering effects of the pandemic.
Biden said that Russian President Vladimir Putin thought he could divide the U.S. and its allies, but “Putin was wrong. We were ready.”
The president also unveiled a new economic plan after his “Build Back Better” package stalled in Congress. He called for measures that he said can boost U.S. manufacturing, urged confirmation of his five Federal Reserve nominees and hailed his Supreme Court pick, Judge Ketanji Brown Jackson.
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Biden Calls for Legislation Protecting Abortion Rights
Biden urged Congress to protect a woman’s right to an abortion as the U.S. Supreme Court is set to rule this year on whether a Mississippi ban on the procedure after 15 weeks can remain.
During arguments Dec. 1, the court’s six conservatives all suggested they were likely to uphold the Mississippi ban. And five signaled they were interested in going further and eliminating the constitutional right to abortion altogether.
If the court overturns Roe v. Wade, 26 states either will or are likely to ban most abortions, according to the Guttmacher Institute, a research organization that backs abortion rights. About 12 have so-called trigger laws designed to automatically ban abortion if Roe v. Wade is overturned. — Jeff Green
Biden Pushes Stronger Laws to Protect Kids on Social Media
Biden said he supports efforts to strengthen privacy protections for kids online, including banning targeted advertising and data collection on children, as he hailed a Facebook whistle-blower.
“As Frances Haugen, who is here with us tonight, has shown, we must hold social media platforms accountable for the national experiment they’re conducting on our children for profit,” Biden said.
Haugen, a former Facebook employee whose disclosure of a trove of internal company documents prompted calls for regulations of social media companies, was a White House guest in the chamber. –Brody Ford
Biden Touts Nominee Jackson, Salutes Breyer
Biden touted his nominee for the U.S. Supreme Court, Judge Ketanji Brown Jackson, as “a consensus-builder” who will continue the legacy of the retiring Justice Stephen Breyer.
Biden said Jackson, whose nomination he announced on Friday, has already received a “broad range of support,” including endorsements from the Fraternal Order of Police and judges appointed by Republicans as well as Democrats.
Breyer, who drew a big ovation when Biden thanked him for his service, was one of five justices at the event. Chief Justice John Roberts and Justices Elena Kagan, Brett Kavanaugh and Amy Coney Barrett also attended. –Greg Stohr
Biden Calls for Hiring Based on Skills, Not Degrees
Biden urged more companies to switch to skills-based hiring, rather than arbitrarily requiring a college degree.
Skills-based hiring is already the focus of the OneTen initiative, created in 2020 by former International Business Machines Corp. chief executive officer Ginni Rometty and former Merck & Co. CEO Ken Frazier. The coalition of more than 60 companies is working to get 1 million Black workers into jobs that don’t require 4-year college degrees and pay family-sustaining wages over a decade. –Jeff Green
Biden Says Pfizer Drug Will Be Available in Pharmacies
Biden said Americans will be able to get Pfizer Inc.’s antiviral Covid-19 treatment at a pharmacy immediately after testing positive.
Availability of the pill has been slowly increasing since it was cleared for use in December. Pfizer is working to deliver one million pills this month and more than two million next month, Biden said. –Josh Wingrove
Biden Calls for Vote on His Fed Nominees
Biden called on Senate Republicans to stop blocking a vote on his five nominees to the Federal Reserve.
“Confirm my nominees for the Federal Reserve, which plays a critical role in fighting inflation,” he said.
Senator Pat Toomey said in an interview Tuesday he intends to once again have Republicans boycott a committee vote planned for Wednesday because he hasn’t been satisfied about his questions about nominee Sarah Bloom Raskin’s role as a director at Colorado fintech firm Reserve Trust. –Jennifer Epstein
Biden Seeks Cut in Child-Care Costs
Biden called for cutting the cost of child care, which can amount to as much as $14,000 a year.
He proposes capping the costs at no more than 7% of a family’s income for most households. Those earning very little would pay nothing. His plan would provide for free preschool for all 3- and 4-year-olds.
Lack of child-care options has been a key reason many women left the workforce during the pandemic. Between February 2020 and February 2021, more than 2.3 million women left the workforce, bringing their participation rate to 57% — lower than at any time since 1988, according to the U.S. Bureau of Labor Statistics. –Jeff Green
Biden Silent on Use of Cryptocurrency to Bypass Sanctions
Biden’s speech makes no mention of Russia’s potential use of cryptocurrency, which has emerged as a flashpoint as high-profile individuals, including former Secretary of State Hillary Clinton, have raised concerns about the possible use of digital assets to bypass sanctions.
Bloomberg News previously reported that the White House’s National Security Council and Treasury Department have asked crypto exchanges to take steps to ensure their platforms aren’t being used as a workaround. The surging price of Bitcoin–up by more than 17% over the past three days–is fueling speculation that the tokens are offering an escape hatch for sanctioned individuals and entities. –Allyson Versprille
Biden Rebrands His Stalled Spending Package
Biden sought to rebrand his spending package, formerly known as “Build Back Better,” into a proposal he’s calling “Building a Better America.”
It’s pretty much the ideas he proposed before — only messaged as more about deficit reduction and reducing inflation. –Nancy Cook
Ukraine Gets 10 Minutes, Then On to the Economy
For all the discussion about how much the Russian invasion of Ukraine was going to change Tuesday’s speech, Biden spent less than 10 minutes talking about the conflict.
Then, he turned to the issue Americans care about most: the economic hardships caused by the Covid-19 pandemic. “We meet tonight in an America that has lived through two of the hardest years this nation has ever faced,” he said. “The pandemic has been punishing.”
From there, he moved on to laying out his first-year economic accomplishments, from plummeting unemployment to passing the American Rescue Plan and the Bipartisan Infrastructure Law. — Jennifer Epstein
Biden Pushes for His Climate Agenda
Biden cast climate change as an opportunity to build a better, stronger nation, drive economic growth and save money.
He extolled the investments unleashed by last year’s bipartisan infrastructure law as a chance to become more resilient in weathering the consequences of climate change while promoting environmental justice.
He also touted the promise for investments in clean energy — including tax credits for renewable power and electric vehicles — to cut families’ energy costs an average of $500 a year, Biden said. It’s a reference to a Rhodium Group analysis in October. –Jennifer Dlouhy
Biden Calls For People to Stop Working From Home
Biden said Americans need to return to their offices after working at home during the pandemic.
“It’s time for Americans to get back to work and fill our great downtowns again,” he said, according to prepared remarks. “People working from home can feel safe to begin to return to the office.”
The vast majority of federal workers will once again work in-person, he said. –Josh Wingrove
Biden Summons Ovation for Ukraine’s Ambassador
Biden drew standing ovations as he praised Ukranians’ efforts to fight Russia and when he thanked Oksana Markarova, the Ukranian ambassador to the U.S. for attending the speech.
“In this struggle as President Zelenskiy said in his speech to the European Parliament ‘Light will win over darkness,”’ Biden said, referring to Ukraine’s president Volodymyr Zelenskiy. “The Ukrainian ambassador to the United States is here tonight,” he said.
Markarova put her hand over her heart and mouthed “thank you” to the president. –Jennifer Epstein
Oil Traders Cast Gloom Over Biden’s Evening
Oil traders cast some gloom over the evening shortly before Biden spoken, sending crude futures up about 5%. Prices jumped 8% in regular trading in New York on Tuesday.
Oil prices are at seven-year highs as rigorous post-pandemic demand has far outpaced the flow of crude supplies into the market. Rising energy prices are a mounting political problem for Biden.
GOP Lawmaker Raised in Ukraine Escorts Biden After Criticizing
Among the contingent of lawmakers escorting Biden into the House chamber is an Indiana Republican who grew up in Ukraine. Representative Victoria Spartz earlier in the day gave an impassioned plea for strong action against Russia for invading Ukraine and had some biting criticism of Biden.
“I talk from my heart. This is not a war. This is a genocide of the Ukranian people by a crazy man,” Spartz said at a news conference. She said Biden must “act decisively fast or blood of many Ukrainians will be on his hand too.” — Joe Sobczyk
Commerce Secretary Skips Speech as Designated Survivor
Commerce Secretary Gina Raimondo isn’t at the Capitol for Biden’s State of the Union, taking the role known as designated survivor.
At least one Cabinet member always stays away to ensure continuity of government if a disaster occurs. — Jennifer Epstein and Jennifer Jacobs
U.S. Will Ban Russian Aircraft From Flying Through Its Airspace
Biden will announce in his speech that U.S. airspace is being closed to Russian airlines, joining most European nations and Canada in response to the invasion of Ukraine, according to two people familiar with the government’s decision. The people asked not to be named discussing the issue prior to the president’s announcement.
The action is largely symbolic since earlier airspace closings have made it very difficult for Russian aircraft to reach the U.S. from most locations. Canada blocked two Aeroflot flights attempting to return to Russia from the U.S. on Monday.
U.S. Stock Futures Edge Higher Ahead of Speech
U.S. stock futures nosed higher in the run-up to Biden’s speech, clawing back after a day in which the three major equity indexes finished solidly in the red.
S&P 500 futures rose 0.3% at 7:45 p.m. in New York.
A Show of Ukraine’s Colors to Be Mounted by Lawmakers
A large bipartisan group of lawmakers wore blue-and-yellow ribbons, the color of Ukraine’s flag, to show solidarity with the nation under attack by Russia, according to Representative Mike Quigley, a co-chair of the Congressional Ukraine Caucus. — Daniel Flatley
Lawmakers Test — and Four Find Covid
Just days after a mask requirement was dropped for lawmakers attending the State of the Union, four Democrats revealed they tested positive with breakthrough Covid cases.
Testing was required for lawmakers attending the speech, and so far it has led to four of them disclosing infection: Senator Alex Padilla of California and Representatives Jamie Raskin of Maryland, Suzan DelBene of Washington and Pete Aguilar of California.
House Speaker Nancy Pelosi, 81, said on MSNBC that she wouldn’t wear a mask during the Biden speech because she doesn’t have preexisting conditions or young, unvaccinated children at home.
Most lawmakers arrived for the speech maskless, as did Brian Monahan, the Capitol’s attending physician.
Lawmakers were assigned seats in the House chamber with empty ones in between for social distancing, requiring some to watch from the gallery or mezzanine, where outside guests are usually placed. — Eric Wasson and Billy House
GOP Pans Biden Even Before He Speaks
Even before Biden makes his case, Republican lawmakers sought to blame him for the host of challenges facing the country and the world.
Leaders of the House Republican caucus, at a news conference earlier Tuesday, blamed the president for the Russian invasion of Ukraine, rising prices for gasoline, increased crime and an influx of migrants crossing the southern border with Mexico.
“Joe Biden and House Democrats are responsible for this state of the union in crisis,” House Republican Conference Chair Elise Stefanik of New York said. — Zach Cohen
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