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Remarks by the President on the mortgage crisis

For Immediate Release                                                        February 18, 2009

REMARKS BY THE PRESIDENT
ON THE HOME MORTGAGE CRISIS
Dobson High School
Mesa, Arizona
10:25 A.M. MST

THE PRESIDENT:  Thank you very much.  (Applause.)  Please, everybody have a seat.  Thank you.  Well, it is good to be back in Arizona.  (Applause.)  Thank you.  Are you excited?  (Applause.)  Thank you, thank you.  And thank you for arranging for such a beautiful day.  I want to stick around, but I got to go back to work.  But it is wonderful to be here.  And to all of you, I know that attending these kinds of events, oftentimes you have to wait in line and there's all kinds of stuff going on.  But I appreciate you being here very much.  And to all the officials here at the school, the principal and the student body, everybody who helped make this possible, thank you so much to all of you.  (Applause.)   

     I'm here today to talk about a crisis unlike we've ever known -- but one that you know very well here in Mesa, and throughout the Valley.  In Phoenix and its surrounding suburbs, the American Dream is being tested by a home mortgage crisis that not only threatens the stability of our economy, but also the stability of families and neighborhoods.  It's a crisis that strikes at the heart of the middle class:  the homes in which we invest our savings and build our lives, raise our families and plant roots in our communities.

     So many Americans have shared with me their personal experiences of this crisis.  Many have written letters or emails or shared their stories with me at rallies and along rope lines. Their hardship and heartbreak are a reminder that while this crisis is vast, it begins just one house -- and one family -- at a time. 

     It begins with a young family -- maybe in Mesa, or Glendale, or Tempe -- or just as likely in a suburban area of Las Vegas, or Cleveland, or Miami.  They save up.  They search.  They choose a home that feels like the perfect place to start a life.  They secure a fixed-rate mortgage at a reasonable rate, and they make a down payment, and they make their mortgage payments each month.  They are as responsible as anyone could ask them to be.

     But then they learn that acting responsibly often isn't enough to escape this crisis.  Perhaps somebody loses a job in the latest round of layoffs, one of more than 3.5 million jobs lost since this recession began -- or maybe a child gets sick, or a spouse has his or her hours cut.

     In the past, if you found yourself in a situation like this, you could have sold your home and bought a smaller one with more affordable payments, or you could have refinanced your home at a lower rate.  But today, home values have fallen so sharply that even if you make a large down payment, the current value of your mortgage may still be higher than the current value of your house.  So no bank will return your calls, and no sale will return your investment.

     You can't afford to leave, you can't afford to stay.  So you start cutting back on luxuries.  Then you start cutting back on necessities.  You spend down your savings to keep up with your payments.  Then you open the retirement fund.  Then you use the credit cards.  And when you've gone through everything you have, and done everything you can, you have no choice but to default on your loan.  And so your home joins the nearly 6 million others in foreclosure or at risk of foreclosure across the country, including roughly 150,000 right here in Arizona.

     But the foreclosures which are uprooting families and upending lives across America are only part of the housing crisis.  For while there are millions of families who face foreclosure, there are millions more who are in no danger of losing their homes, but who have still seen their dreams endangered.  They're the families who see the "For Sale" signs lining the streets; who see neighbors leave, and homes standing vacant, and lawns slowly turning brown.  They see their own homes -- their single largest asset -- plummeting in value.  One study in Chicago found that a foreclosed home reduces the price of nearby homes by as much as 9 percent.  Home prices in cities across the country have fallen by more than 25 percent since 2006.  And in Phoenix, they've fallen by 43 percent. 

     Even if your neighborhood hasn't been hit by foreclosures, you're likely feeling the effects of this crisis in other ways. Companies in your community that depend on the housing market -- construction companies and home furnishing stores and painters and landscapers -- they're all cutting back and laying people off.  The number of residential construction jobs has fallen by more than a quarter million since mid-2006.  As businesses lose revenue and people lose income, the tax base shrinks, which means less money for schools and police and fire departments.  And on top of this, the costs to local government associated with a single foreclosure can be as high as $20,000.

     So the effects of this crisis have also reverberated across the financial markets.  When the housing market collapsed, so did the availability of credit on which our economy depends.  And as that credit has dried up, it's been harder for families to find affordable loans to purchase a car or pay tuition, and harder for businesses to secure the capital they need to expand and create jobs.

     In the end, all of us are paying a price for this home mortgage crisis.  And all of us will pay an even steeper price if we allow this crisis to continue to deepen -- a crisis which is unraveling home ownership, the middle class, and the American Dream itself.  But if we act boldly and swiftly to arrest this downward spiral, then every American will benefit.  And that's what I want to talk about today.

     The plan I'm announcing focuses on rescuing families who've played by the rules and acted responsibly, by refinancing loans for millions of families in traditional mortgages who are underwater or close to it, by modifying loans for families stuck in sub-prime mortgages they can't afford as a result of skyrocketing interest rates or personal misfortune, and by taking broader steps to keep mortgage rates low so that families can secure loans with affordable monthly payments.

     At the same time, this plan must be viewed in a larger context.  A lost home often begins with a lost job.  Many businesses have laid off workers for a lack of revenue and available capital.  Credit has become scarce as markets have been overwhelmed by the collapse of security backed -- securities backed by failing mortgages.  In the end, the home mortgage crisis, the financial crisis, and this broader economic crisis are all interconnected, and we can't successfully address any one of them without addressing them all.

     So yesterday, in Denver, I signed into law the American Recovery and Reinvestment Act, which will create or save -- (applause.)  The act will create or save 3.5 million jobs over the next two years -- including 70,000 right here in Arizona, right here -- (applause) -- doing the work America needs done.  And we're also going to work to stabilize, repair and reform our financial system to get credit flowing again to families and businesses. 

     And we will pursue the housing plan I'm outlining today.  And through this plan, we will help between 7 and 9 million families restructure or refinance their mortgages so they can afford -- avoid foreclosure.  And we're not just helping homeowners at risk of falling over the edge; we're preventing their neighbors from being pulled over that edge, too -- as defaults and foreclosures contribute to sinking home values, and failing local businesses, and lost jobs.

     But I want to be very clear about what this plan will not do:  It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans.  It will not help speculators -- (applause) -- it will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell.  (Applause.)  It will not help dishonest lenders who acted irresponsibly, distorting the facts -- (applause)  -- distorting the facts and dismissing the fine print at the expense of buyers who didn't know better.  And it will not reward folks who bought homes they knew from the beginning they would never be able to afford.  (Applause.)  So I just want to make this clear:  This plan will not save every home. 

     But it will give millions of families resigned to financial ruin a chance to rebuild.  It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everybody.  According to estimates by the Treasury Department, this plan could stop the slide in home prices due to neighboring foreclosures by up to $6,000 per home.

     So here's how my plan works:  First, we will make it possible for an estimated 4 to 5 million currently ineligible homeowners who receive their mortgages through Fannie Mae or Freddie Mac to refinance their mortgages at a lower rate.  (Applause.)

     Today, as a result of declining home values, millions of families are what's called "underwater," which simply means that they owe more on their mortgages than their homes are currently worth.  These families are unable to sell their homes, but they're also unable to refinance them.  So in the event of a job loss or another emergency, their options are limited.

     Also right now, Fannie Mae and Freddie Mac -- the institutions that guarantee home loans for millions of middle-class families -- are generally not permitted to guarantee refinancing for mortgages valued at more than 80 percent of the home's worth.  So families who are underwater or close to being underwater can't turn to these lending institutions for help. 

My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee.  (Applause.) 

     And what this will do is it will allow millions of families stuck with loans at a higher rate to refinance.  And the estimated cost to taxpayers would be roughly zero.  While Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures.  (Applause.)

     I also want to point out that millions of other households could benefit from historically low interest rates if they refinance, though many don't know that this opportunity is available to them -- meaning some of you -- an opportunity that could save your families hundreds of dollars each month.  And the efforts we are taking to stabilize mortgage markets will help you, borrowers, secure more affordable terms, too. 

     A second thing we're going to do under this plan is we will create new incentives so that lenders work with borrowers to modify the terms of sub-prime loans at risk of default and foreclosure. 

     Sub-prime loans -- loans with high rates and complex terms that often conceal their costs -- make up only 12 percent of all mortgages, but account for roughly half of all foreclosures.  Right now, when families with these mortgages seek to modify a loan to avoid this fate, they often find themselves navigating a maze of rules and regulations, but they’re rarely finding answers.  Some sub-prime lenders are willing to renegotiate; but many aren't.  And your ability to restructure your loan depends on where you live, the company that owns or manages your loan, or even the agent who happens to answer the phone on the day that you call.

     So here's what my plan does:  establishes clear guidelines for the entire mortgage industry that will encourage lenders to modify mortgages on primary residences.  Any institution that wishes to receive financial assistance from the government, from taxpayers, and to modify home mortgages, will have to do so according to these guidelines -- which will be in place two weeks from today.  (Applause.)

     Here's what this means:  If lenders and home buyers work together, and the lender agrees to offer rates that the borrower can afford, then we'll make up part of the gap between what the old payments were and what the new payments will be.  Under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower's income.  And this will enable as many as 3 to 4 million homeowners to modify the terms of their mortgages to avoid foreclosure.

     So this part of the plan will require both buyers and lenders to step up and do their part, to take on some responsibility.  Lenders will need to lower interest rates and share in the costs of reducing monthly payments in order to prevent another wave of foreclosures.  Borrowers will be required to make payments on time in return for this opportunity to reduce those payments.

     And I also want to be clear that there will be a cost associated with this plan.  But by making these investments in foreclosure prevention today, we will save ourselves the costs of foreclosure tomorrow -- costs that are borne not just by families with troubled loans, but by their neighbors and communities and by our economy as a whole.  Given the magnitude of these crises, it is a price well worth paying.  (Applause.)

     There's a third part of the plan:  We will take major steps to keep mortgage rates low for millions of middle-class families looking to secure new mortgages.

     Today, most new home loans are backed by Fannie Mae and Freddie Mac, which guarantee loans and set standards to keep mortgage rates low and to keep mortgage financing available and predictable for middle-class families.  Now, this function is profoundly important, especially now as we grapple with a crisis that would only worsen if we were to allow further disruptions in our mortgage markets.

     Therefore, using the funds already approved by Congress for this purpose, the Treasury Department and the Federal Reserve will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities so that there is stability and liquidity in the marketplace.  Through its existing authority, Treasury will provide up to $200 billion in capital to ensure that Fannie Mae and Freddie Mac can continue to stabilize markets and hold mortgage rates down.

     And we're also going to work with Fannie and Freddie on other strategies to bolster the mortgage markets, like working with state housing finance agencies to increase their liquidity.  And as we seek to ensure that these institutions continue to perform what is a vital function on behalf of middle-class families, we also need to maintain transparency and strong oversight so that they do so in responsible and effective ways.

     Fourth, we will pursue a wide range of reforms designed to help families stay in their homes and avoid foreclosures.

     And my administration will continue to support reforming our bankruptcy rules so that we allow judges to reduce home mortgages on primary residences to their fair market value -- as long as borrowers pay their debts under court-ordered plans.  (Applause.) I just want everybody to understand, that's the rule for investors who own two, three, and four homes.  So it should be the rule for folks who just own one home -- (applause) -- as an alternative to foreclosure. 

     In addition, as part of the recovery plan I signed into law yesterday, we are going to award $2 billion in competitive grants to communities that are bringing together stakeholders and testing new and innovative ways to limit the effects of foreclosures.    Communities have shown a lot of initiative, taking responsibility for this crisis when many others have not.  And supporting these neighborhood efforts is exactly what we should be doing.     

     So taken together, the provisions of this plan will help us end this crisis and preserve for millions of families their stake in the American Dream.  But we also have to acknowledge the limits of this plan. 

     Our housing crisis was born of eroding home values, but it was also an erosion of our common values, and in some case, common sense.  It was brought about by big banks that traded in risky mortgages in return for profits that were literally too good to be true; by lenders who knowingly took advantage of homebuyers; by homebuyers who knowingly borrowed too much from lenders; by speculators who gambled on ever-rising prices; and by leaders in our nation's capital who failed to act amidst a deepening crisis.  (Applause.) 

     So solving this crisis will require more than resources; it will require all of us to step back and take responsibility.  Government has to take responsibility for setting rules of the road that are fair and fairly enforced.  Banks and lenders must be held accountable for ending the practices that got us into this crisis in the first place.  And each of us, as individuals, have to take responsibility for their own actions.  That means all of us have to learn to live within our means again and not assume that -- (applause) -- and not assume that housing prices are going to go up 20, 30, 40 percent every year. 

     Those core values of common sense and responsibility, those are the values that have defined this nation.  Those are the values that have given substance to our faith in the American Dream.  Those are the values we have to restore now at this defining moment.

     It will not be easy.  But if we move forward with purpose and resolve -- with a deepened appreciation of how fundamental the American Dream is and how fragile it can be when we fail to live up to our collective responsibilities, if we go back to our roots, our core values, I am absolutely confident we will overcome this crisis and once again secure that dream not just for ourselves but for generations to come.

     Thank you.  God bless you.  God bless the United States of America.  (Applause.)

Recovery Act Contracting, From the Comfort of Your Living Room

Did you know that over 90 BILLION DOLLARS in federal prime contracts were awarded to small and disadvantaged businesses last year?  If you didn’t, you’re not alone.  As I’ve traveled around the country over the last few months talking to small business owners about contracting with the federal government, three very important thoughts have run through my head:

 

1) More small businesses need to know what contracting opportunities are out there for them and how they can compete for these contracts.

 

2) Every government agency needs to know about all of the small businesses owned by women, minorities, and veterans that can provide the quality goods and services they need.

 

3) There’s no way I can get to everybody in person…I wish there was a way to provide every business owner with the tools they need from the comfort of their own home.

 
Oh right, there is!  President Obama has tasked all of us across the Federal Government with using new technologies to make government more accessible.  And when that approach helps to benefit small businesses, it’s a special priority for the President.

That’s why this week SBA has launched a new online training program: "How to Win Federal Contracts" available at www.sba.gov/fedcontractingtraining.  It’s the latest in a series of steps we’re taking with our colleagues at the Department of Commerce on an initiative the President asked SBA Administrator Karen Mills (my boss) and Commerce Secretary Gary Locke to spearhead.

 

It’s called…the "Stakeholder Outreach Initiative" or "SOI".  It’s not the most glamorous name…but the idea behind the initiative is important. 

 

As President Obama has said, "It is essential that we provide our Nation’s small businesses with maximum practicable opportunity to participate in Federal Government contracting."

 

Over the course of the Recovery Act, roughly $60 Billion in federal contracts will be awarded.  And ensuring small businesses and firms owned by minorities, women, and veterans are involved in the Recovery is a "win-win."

 

As Administrator Mills puts it: "Government contracts can play a key role in helping small businesses turn the corner in terms of expansion and job creation.  But make no mistake, the benefits the government receives are equally as impressive – working with small businesses allows the federal government to work with some of the most innovative companies in America, often with direct contact with the CEO."

 

In announcing this initiative, President Obama has reiterated his Administration’s commitment to small and disadvantaged businesses.  My team and our colleagues at the Department of Commerce are working hard to deliver on this commitment.  We are working with all federal agencies to host or participate in hundreds of contracting-focused events around the country in the next few months.  We are reaching out to contracting officers at federal agencies and large prime contractors to make sure they know about all the great small and disadvantaged businesses out there who can provide the prime and subcontracting work that they need. We are developing new online training courses that businesses can use to learn how to enter this marketplace. 

So, stop by your local SBA or MBDA (Minority Business Development Agency) office.  Check out our new online Recovery Act contracting training (www.sba.gov/fedcontractingtraining).  Together, we can make the goals of small and disadvantaged business contracting a reality.

 

Joseph Jordan is the Assistant Administrator for Government Contracting and Business Development at the U.S. Small Business Administration

 

A Wonderful Day (Update: Video)

It's about justice. It's about who we are. And on this "wonderful day," we're getting a step closer to both of those things.

That was President Obama's message as he signed his first piece of legislation, the Lilly Ledbetter Fair Pay Act of 2009, which will make it easier for people to get the pay they deserve -- regardless of their gender, race, or age.

"Ultimately, equal pay isn't just an economic issue for millions of Americans and their families, it's a question of who we are -- and whether we're truly living up to our fundamental ideals," President Obama said. "Whether we'll do our part, as generations before us, to ensure those words put on paper some 200 years ago really mean something -- to breathe new life into them with a more enlightened understanding that is appropriate for our time.

Surrounded by leaders like House Speaker Nancy Pelosi and Secretary of State Hillary Clinton, and with the new law's namesake, Lilly Ledbetter, at his side, President Obama signed into law a powerful tool to fight discrimination.

The law is now up on our website, where you can review its full text and and submit your thoughts, comments, and ideas.

We asked Mrs. Ledbetter to speak a bit about what the new law means to her. Watch the video below -- or scroll down for the text of remarks by the President, the First Lady, and Mrs. Ledbetter.

White House photo by Pete Souza             

privacy policy | download video as high-quality .mp4) | also available here

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THE PRESIDENT: All right. Everybody please have a seat. Well, this is a wonderful day. (Applause.) First of all, it is fitting that the very first bill that I sign -- the Lilly Ledbetter Fair Pay Restoration Act -- (applause) -- that it is upholding one of this nation's founding principles: that we are all created equal, and each deserve a chance to pursue our own version of happiness.

It's also fitting that we're joined today by the woman after whom this bill is named -- someone who Michelle and I have had the privilege to get to know ourselves. And it is fitting that we are joined this morning by the first woman Speaker of the House of Representatives, Nancy Pelosi. (Applause.) It's appropriate that this is the first bill we do together. We could not have done it without her. Madam Speaker, thank you for your extraordinary work. And to all the sponsors and members of Congress and leadership who helped to make this day possible.

Lilly Ledbetter did not set out to be a trailblazer or a household name. She was just a good hard worker who did her job -- and she did it well -- for nearly two decades before discovering that for years, she was paid less than her male colleagues for doing the very same work. Over the course of her career, she lost more than $200,000 in salary, and even more in pension and Social Security benefits -- losses that she still feels today.

Now, Lilly could have accepted her lot and moved on. She could have decided that it wasn't worth the hassle and the harassment that would inevitably come with speaking up for what she deserved. But instead, she decided that there was a principle at stake, something worth fighting for. So she set out on a journey that would take more than ten years, take her all the way to the Supreme Court of the United States, and lead to this day and this bill which will help others get the justice that she was denied.

Because while this bill bears her name, Lilly knows that this story isn't just about her. It's the story of women across this country still earning just 78 cents for every dollar men earn -- women of color even less -- which means that today, in the year 2009, countless women are still losing thousands of dollars in salary, income and retirement savings over the course of a lifetime.

Equal pay is by no means just a women's issue -- it's a family issue. It's about parents who find themselves with less money for tuition and child care; couples who wind up with less to retire on; households where one breadwinner is paid less than she deserves; that's the difference between affording the mortgage -- or not; between keeping the heat on, or paying the doctor bills -- or not. And in this economy, when so many folks are already working harder for less and struggling to get by, the last thing they can afford is losing part of each month's paycheck to simple and plain discrimination.

So signing this bill today is to send a clear message: that making our economy work means making sure it works for everybody; that there are no second-class citizens in our workplaces; and that it's not just unfair and illegal, it's bad for business to pay somebody less because of their gender or their age or their race or their ethnicity, religion or disability; and that justice isn't about some abstract legal theory, or footnote in a casebook. It's about how our laws affect the daily lives and the daily realities of people: their ability to make a living and care for their families and achieve their goals.

Ultimately, equal pay isn't just an economic issue for millions of Americans and their families, it's a question of who we are -- and whether we're truly living up to our fundamental ideals; whether we'll do our part, as generations before us, to ensure those words put on paper some 200 years ago really mean something -- to breathe new life into them with a more enlightened understanding that is appropriate for our time.

That is what Lilly Ledbetter challenged us to do. And today, I sign this bill not just in her honor, but in the honor of those who came before -- women like my grandmother, who worked in a bank all her life, and even after she hit that glass ceiling, kept getting up and giving her best every day, without complaint, because she wanted something better for me and my sister.

And I sign this bill for my daughters, and all those who will come after us, because I want them to grow up in a nation that values their contributions, where there are no limits to their dreams and they have opportunities their mothers and grandmothers never could have imagined.

In the end, that's why Lilly stayed the course. She knew it was too late for her -- that this bill wouldn't undo the years of injustice she faced or restore the earnings she was denied. But this grandmother from Alabama kept on fighting, because she was thinking about the next generation. It's what we've always done in America -- set our sights high for ourselves, but even higher for our children and our grandchildren.

And now it's up to us to continue this work. This bill is an important step -- a simple fix to ensure fundamental fairness for American workers -- and I want to thank this remarkable and bipartisan group of legislators who worked so hard to get it passed. And I want to thank all the advocates who are in the audience who worked so hard to get it passed. This is only the beginning. I know that if we stay focused, as Lilly did -- and keep standing for what's right, as Lilly did -- we will close that pay gap and we will make sure that our daughters have the same rights, the same chances, and the same freedoms to pursue their dreams as our sons.

So thank you, Lilly Ledbetter. (Applause.)

(The bill is signed.) (Applause.)

---

MRS. OBAMA: So thank you for joining us today for this important event, and welcome to the White House. (Applause.) As I told guests, feel free, walk around, touch some stuff. (Laughter.) Just don't break anything. (Laughter.) It's what I try to tell my kids. (Laughter.)

I had the opportunity to meet Lilly during the campaign and to hear her story. First of all, she is one of my favorite people in the whole wide world. Anyone who meets Lilly can't help but be impressed by her commitment, her dedication, her focus. She knew unfairness when she saw it, and was willing to do something about it because it was the right thing to do -- plain and simple.

In traveling across the country over the past two years, Lilly's story and the broader issue of equal pay was a concern voiced over and over and over again. It was a top and critical priority for women of all racial and ethnic backgrounds -- older women, younger women, women with disabilities, and their families. This legislation is an important step forward, particularly at a time when so many families are facing economic insecurity and instability. It's also one cornerstone of a broader commitment to address the needs of working women who are looking to us to not only ensure that they're treated fairly, but also to ensure that there are policies in place that help women and men balance their work and family obligations without putting their jobs or their economic stability at risk.

And it is my honor to introduce this extraordinary woman whose hard work has brought us here today for this very special occasion, and who has been an inspiration to women and men all across this country. Ladies and gentlemen, Lilly Ledbetter. (Applause.)

MRS. LEDBETTER: Thank you. And thank you, Mrs. Obama.

I fell in love with those people campaigning with them. I have to tell you that. And that's not on my prepared speech -- (laughter) -- but I have to tell you I love she and the President. And I just believe in them and their work so very much.

But thank you very much. Words cannot begin to describe how honored and humbled I feel today. When I filed my claim against Goodyear with the EEOC 10 years ago, never -- never -- did I imagine the path that it would lead me down. I have spent the past two years since the Supreme Court's decision in my case fighting for equal pay for this day. But to watch you sign a bill that bears my name, the bill that will help women and others fight pay discrimination in the workplace, is truly overwhelming.

Goodyear will never have to pay me what it cheated me out of. In fact, I will never see a cent from my case. But with the passage and President's signature today, I have an even richer reward. (Applause.) I know that my daughter and granddaughters, and your daughters and your granddaughters, will have a better deal. That's what makes this fight worth fighting. That's what made this fight one we had to win. And now with this win we will make a big difference in the real world.

On behalf of all the women in this country who will once again be able to fight pay discrimination, thank you. Thank you to all the senators and House members who fought for and supported this bill. Thank you to the many organizations and broad coalition that worked tirelessly for its passage. And thank you to the countless women around the country who rallied behind this legislation. It would never have happened without you.

With this bill in place, we now can move forward to where we all hope to be -- improving the law, not just restoring it. President Obama, I want him to know that we're very grateful for his support. And you can count on my continued commitment to fighting to pass the Paycheck Fairness Act -- (applause) -- and to make sure that women have equal pay for equal work, because that's what this country is all about.

And thank you very much. (Applause.)

Open Government Initiative: Phase II

3:56 P.M. EDT

THE PRESIDENT: Thank you. Please be seated. Thank you. Well, what an extraordinary day. It is good to be here with all of you.

I want to, first of all, thank President Bill Clinton for joining us here today -- where’s President Clinton? -- (applause) -- for his lifetime of service to our country, but also the fact that he created AmeriCorps, and that not only made this day possible, it has directly enlisted more than half a million Americans in service to their country; service that has touched the lives of millions more.

Now, it just so happens that one of those people who have been touched by AmeriCorps was FLOTUS, otherwise known as First Lady of the United States -- (laughter) -- Michelle Obama, who ran a AmeriCorps-sponsored program, Public Allies, in Chicago. (Applause.)

I also want to thank former First Lady Rosalynn Carter for being here -- (applause) -- for her advocacy on behalf of those with mental illness, and for her husband’s continued good works that inspire us all. I am thrilled to have Caroline Kennedy here -- (applause) -- for carrying on her family’s long legacy of service.

To my congressional colleagues who did such a fantastic job on a bipartisan basis ushering this through, starting with the two leaders of the House and the Senate, Nancy Pelosi and Harry Reid, I’m grateful to them, and obviously to Barbara Mikulski and Orrin Hatch, George Miller, the entire delegation who helped to shepherd this through -- please give them a huge round of applause. (Applause.)

To my outstanding Vice President, Joe Biden. (Applause.) To Dr. Jill Biden. (Applause.) A couple of outstanding public servants in their own right, please, a warm welcome for General Colin Powell and his wonderful wife, Alma. (Applause.) For the outstanding Mayor of New York City, Michael Bloomberg. (Applause.) And I’ve got to give some special props to my fellow Illinoisan, a great friend, Dick Durbin. (Applause.)

Finally -- and I know that I’ve got some prepared remarks -- but I just want to go ahead and say it now. There are very few people who have touched the life of this nation in the same breadth and the same order of magnitude than the person who is seated right behind me. And so this is just an extraordinary day for him. And I am truly grateful and honored to call him a friend, a colleague, and one of the finest leaders we’ve ever had -- Ted Kennedy. (Applause.)

All right. I want to thank the students and the faculty of the SEED School -- (applause) -- our hosts for today -- and their headmaster, Charles Adams. Where’s Mr. Adams? Is he here? (Applause.) A shining example of how AmeriCorps alums go on to do great things. This school is a true success story -- a place where for four of the last five years, every graduate from the SEED School was admitted to college -- every graduate. (Applause.)

It’s a place where service is a core component of the curriculum. And just as the SEED School teaches reading and writing, arithmetic and athletics, it also prepares our young Americans to grow into active and engaged citizens. And what these students come to discover through service is that by befriending a senior citizen, or helping the homeless, or easing the suffering of others, they can find a sense of purpose and renew their commitment to this country that we love.

And that is the spirit in which we gather today, as I sign into law a bill that represents the boldest expansion of opportunities to serve our communities and our country since the creation of AmeriCorps -- (applause) -- a piece of legislation named for a man who has not only touched countless lives, but who still sails against the wind, a man who’s never stopped asking what he can do for his country, and that’s Senator Edward M. Kennedy. (Applause.)

In my address to a joint session of Congress in February, I asked for swift passage of this legislation, and these folks on the stage came through. So, again, I want to thank wide bipartisan majorities in the House and the Senate who came together to pass this bill -- especially Barbara Mikulski, Mike Enzi, Chris Dodd, John McCain, who’s not here, Thad Cochran, as well as, on the House side, Representatives Miller and Carolyn McCarthy, Buck McKeon and Howard Berman.

More than anyone else, the new era of service we enter in today has been made possible by the unlikely friendship between these two men, Orrin Hatch and Ted Kennedy. They may be the odd couple of the Senate. (Laughter.) One is a conservative Republican from Utah; the other is, well, Ted Kennedy. (Laughter.) But time and again, they placed partnership over partisanship to advance this nation even in times when we were told that wasn’t possible. (Applause.)

Senator Hatch was shaped by his experience as a young missionary serving others, a period he has called the greatest of his life. And last year he approached Senator Kennedy to share his ideas about service. Out of that conversation came this legislation. And last month, at Senator Hatch’s selfless request, the Senate unanimously chose to name this bill after his dear friend, Ted. (Applause.) That’s the kind of class act that Orrin Hatch is.

Now, Ted’s story and the story of his family is known to all. It’s a story of service. And it’s also the story of America -- of hard work and sacrifice of generation after generation, some called upon to give more than others, but each committed to the idea that we can make tomorrow better than today. I wouldn’t be standing here today if not for the service of others, or for the purpose that service gave my own life.

I’ve told this story before. When I moved to Chicago more than two decades ago to become a community organizer, I wasn’t sure what was waiting for me there, but I had always been inspired by the stories of the civil rights movement, and President Kennedy’s call to service, and I knew I wanted to do my part to advance the cause of justice and equality.

And it wasn’t easy, but eventually, over time, working with leaders from all across these communities, we began to make a difference -- in neighborhoods that had been devastated by steel plants that had closed down and jobs that had dried up. We began to see a real impact in people’s lives. And I came to realize I wasn’t just helping people, I was receiving something in return, because through service I found a community that embraced me, citizenship that was meaningful, the direction that I had been seeking. I discovered how my own improbable story fit into the larger story of America.

It’s the same spirit of service I’ve seen across this country. I’ve met countless people of all ages and walks of life who want nothing more than to do their part. I’ve seen a rising generation of young people work and volunteer and turn out in record numbers. They’re a generation that came of age amidst the horrors of 9/11 and Katrina, the wars in Iraq and Afghanistan, an economic crisis without precedent. And yet, despite all this -- or more likely because of it -- they’ve become a generation of activists possessed with that most American of ideas, that people who love their country can change it.

They’re why the Peace Corps had three applications for every position available last year; why 35,000 young people applied for only 4,000 slots in Teach for America; why AmeriCorps has seen a 400-percent increase in applications in just the past four months. And yet, even as so many want to serve, even as so many are struggling, our economic crisis has forced our charities and non-for-profits to cut back.

What this legislation does, then, is to help harness this patriotism and connect deeds to needs. It creates opportunities to serve for students, seniors, and everyone in between. It supports innovation and strengthens the nonprofit sector. And it is just the beginning of a sustained, collaborative and focused effort to involve our greatest resource -- our citizens -- in the work of remaking this nation.

We’re doing this because I’ve always believed that the answers to our challenges cannot come from government alone. Our government can help to rebuild our economy and lift up our schools and reform health care systems and make sure our soldiers and veterans have everything they need -- but we need Americans willing to mentor our eager young children, or care for the sick, or ease the strains of deployment on our military families.

That’s why this bill will expand AmeriCorps from 75,000 slots today to 250,000 in less than a decade. (Applause.) And it’s not just for freshly minted college grads. As I said, my wife Michelle left her job at a law firm to be the founding director of an AmeriCorps program in Chicago that trains young people for careers in public service. And Michelle can tell you the transformation that occurred in her life as a consequence of being able to follow her passions, follow her dreams.

Programs like these are a force multiplier; they leverage small numbers of members into thousands of volunteers. And we will focus their service toward solving today’s most pressing challenges: clean energy, energy efficiency, health care, education, economic opportunity, veterans and military families.

We’ll invest in ideas that help us meet our common challenges, no matter where those ideas come from. All across America, there are ideas that could benefit millions of Americans if only they were given a chance to take root and to grow -- ideas like the one that Eric Adler and Raj Vinnakota had that led to this school and expanded its model to others.

That’s why this bill includes a new Social Innovation Fund that will bring nonprofits and foundations and faith-based organizations and the private sector to the table with government so that we can learn from one another’s success stories. We’ll invest in ideas that work, leverage private-sector dollars to encourage innovation, expand successful programs to scale and make them work in cities across America.

Because we must prepare our young Americans to grow into active citizens, this bill makes new investments in service learning. And we’ve increased the AmeriCorps education award and linked it to Pell Grant award levels, another step toward our goal of ensuring that every American receives an affordable college education. (Applause.)

Because millions of Americans are out of school and out of work, it creates an Energy Corps that will help people find useful work and gain skills in a growing industry of the future.

Because our boomers are the most highly educated generation in history, and our seniors live longer and more active lives than ever before, this bill offers new pathways to harness their talent and experience to serve others.

And because this historic expansion of the Corporation for National and Community Service requires someone with both bold vision and responsible management experience, I have chosen Mary* Eitel -- where’s Mary*? There she is, stand up, Mary -- as its new CEO. (Applause.) The founder and first president of the Nike Foundation, Maria is a smart and innovative thinker, and a leader who shares my belief in the power of service. And I also wanted to thank the acting CEO, Nicky Goren -- where’s Nicky? -- (applause) -- for guiding the corporation through this transition.

A week from tomorrow marks the 100th day of my administration. In those next eight days, I ask every American to make an enduring commitment to serving your community and your country in whatever way you can. Visit whitehouse.gov to share your stories of service and success. And together, we will measure our progress not just in the number of hours served or volunteers mobilized, but in the impact our efforts have on the life of this nation.

We’re getting started right away -- this afternoon, I’ll be joined by President Clinton and Michelle and Joe Biden and Dr. Biden to plant trees in a park not far from here. It’s as simple as that. All that’s required on your part is a willingness to make a difference. And that is, after all, the beauty of service. Anybody can do it. You don’t need to be a community organizer, or a senator, or a Kennedy -- (laughter) -- or even a President to bring change to people’s lives.

When Ted Kennedy makes this point, he also tells a story as elegantly simple as it is profound. An old man walking along a beach at dawn saw a young man pick up a starfish and throwing them out to sea. "Why are you doing that?" the old man inquired.

The young man explained that the starfish had been stranded on the beach by a receding tide, and would soon die in the daytime sun. "But the beach goes on for miles," the old man said. "And there are so many. How can your effort make any difference?" The young man looked at the starfish in his hand, and without hesitating, threw it to safety in the sea. He looked up at the old man, smiled, and said: "It will make a difference to that one." (Laughter.)

To Ted, that’s more than just a story. For even in the midst of his epic fights on the floor of the Senate to enact sweeping change, he’s made a quiet trek to a school not far from the Capitol, week after week, year after year, without cameras or fanfare, to sit down and read with one solitary child.

Ted Kennedy is that young man who will not rest until we’ve made a difference in the life of every American. He walks down that beach and he keeps on picking up starfish, tossing them into the sea. And as I sign this legislation, I want all Americans to take up that spirit of the man for whom this bill is named; of a President who sent us to the moon; of a dreamer who always asked "Why not?" -- of a younger generation that carries the torch of a single family that has made an immeasurable difference in the lives of countless families.

We need your service right now, at this moment in history. I’m not going to tell you what your role should be; that’s for you to discover. But I’m asking you to stand up and play your part. I’m asking you to help change history’s course, put your shoulder up against the wheel. And if I -- if you do, I promise you your life will be richer, our country will be stronger, and someday, years from now, you may remember it as the moment when your own story and the American story converged, when they came together, and we met the challenges of our new century.

Thank you very much, everybody. I’m going to sign this bill. (Applause.)

(The bill is signed.) (Applause.)

Freedom of Information Act

REMARKS BY PRESIDENT OBAMA
AND PRIME MINISTER NETANYAHU OF ISRAEL
IN PRESS AVAILABILITY

Oval Office

1:21 P.M. EDT

PRESIDENT OBAMA:  Well, listen, I first of all want to thank Prime Minister Netanyahu for making this visit.  I think we had a extraordinarily productive series of conversations, not only between the two of us but also at the staff and agency levels.

Obviously this reflects the extraordinary relationship, the special relationship between the United States and Israel.  It is a stalwart ally of the United States.  We have historical ties, emotional ties.  As the only true democracy of the Middle East it is a source of admiration and inspiration for the American people.

I have said from the outset that when it comes to my policies towards Israel and the Middle East that Israel’s security is paramount, and I repeated that to Prime Minister Netanyahu.  It is in U.S. national security interests to assure that Israel’s security as an independent Jewish state is maintained.

One of the areas that we discussed is the deepening concern

around the potential pursuit of a nuclear weapon by Iran.  It’s something the Prime Minister has been very vocal in his concerns about, but is a concern that is shared by his countrymen and women across the political spectrum.

I indicated to him the view of our administration, that Iran is a country of extraordinary history and extraordinary potential, that we want them to be a full-fledged member of the international community and be in a position to provide opportunities and prosperity for their people, but that the way to achieve those goals is not through the pursuit of a nuclear weapon.  And I indicated to Prime Minister Netanyahu in private what I have said publicly, which is that Iran obtaining a nuclear weapon would not only be a threat to Israel and a threat to the United States, but would be profoundly destabilizing in the international community as a whole and could set off a nuclear arms race in the Middle East that would be extraordinarily dangerous for all concerned, including for Iran.

We are engaged in a process to reach out to Iran and persuade them that it is not in their interest to pursue a nuclear weapon and that they should change course.  But I assured the Prime Minister that we are not foreclosing a range of steps, including much stronger international sanctions, in assuring that Iran understands that we are serious.  And obviously the Prime Minister emphasized his seriousness around this issue as well -- I’ll allow him to speak for himself on that subject.

We also had an extensive discussion about the possibilities of restarting serious negotiations on the issue of Israel and the Palestinians.  I have said before and I will repeat again that it is I believe in the interest not only of the Palestinians, but also the Israelis and the United States and the international community to achieve a two-state solution in which Israelis and Palestinians are living side by side in peace and security.

We have seen progress stalled on this front, and I suggested to the Prime Minister that he has an historic opportunity to get a serious movement on this issue during his tenure.  That means that all the parties involved have to take seriously obligations that they’ve previously agreed to.  Those obligations were outlined in the road map; they were discussed extensively in Annapolis.  And I think that we can -- there is no reason why we should not seize this opportunity and this moment for all the parties concerned to take seriously those obligations and to move forward in a way that assures Israel’s security, that stops the terrorist attacks that have been such a source of pain and hardship, that we can stop rocket attacks on Israel; but that also allow Palestinians to govern themselves as an independent state, that allows economic development to take place, that allows them to make serious progress in meeting the aspirations of their people.

And I am confident that in the days, weeks and months to come we are going to be able to make progress on that issue.

So let me just summarize by saying that I think Prime Minister Netanyahu has the benefit of having served as Prime Minister previously.  He has both youth and wisdom --

PRIME MINISTER NETANYAHU:  I’ll dispute youth, but -- (laughter.)

PRESIDENT OBAMA:  -- and I think is in a position to achieve the security objectives of Israel, but also bring about historic peace.  And I’m confident that he’s going to seize this moment.  And the United States is going to do everything we can to be constructive, effective partners in this process.

PRIME MINISTER NETANYAHU:  President Obama, thank you.  Thank you for your friendship to Israel and your friendship to me.  You’re a great leader -- a great leader of the United States, a great leader of the world, a great friend of Israel, and someone who is acutely cognizant of our security concerns.  And the entire people of Israel appreciate it, and I speak on their behalf.

We met before, but this is the first time that we’re meeting as President and Prime Minister.  So I was particularly pleased at your reaffirmation of the special relationship between Israel and the United States.  We share the same goals and we face the same threats.  The common goal is peace.  Everybody in Israel, as in the United States, wants peace.  The common threat we face are terrorist regimes and organizations that seek to undermine the peace and endanger both our peoples.

In this context, the worst danger we face is that Iran would develop nuclear military capabilities.  Iran openly calls for our destruction, which is unacceptable by any standard.  It threatens the moderate Arab regimes in the Middle East.  It threatens U.S. interests worldwide.  But if Iran were to acquire nuclear weapons, it could give a nuclear umbrella to terrorists, or worse, it could actually give terrorists nuclear weapons.  And that would put us all in great peril.

So in that context, I very much appreciate, Mr. President, your firm commitment to ensure that Iran does not develop nuclear military capability, and also your statement that you’re leaving all options on the table.

I share with you very much the desire to move the peace process forward.  And I want to start peace negotiations with the Palestinians immediately.  I would like to broaden the circle of peace to include others in the Arab world, if we could, Mr. President, so -- this (inaudible) that one shouldn’t let go, maybe peace with the entire Arab world.

I want to make it clear that we don’t want to govern the Palestinians.  We want to live in peace with them.  We want them to govern themselves, absent a handful of powers that could endanger the state of Israel.  And for this there has to be a clear goal.  The goal has to be an end to conflict.  There will have to be compromises by Israelis and Palestinians alike.  We’re ready to do our share.  We hope the Palestinians will do their share, as well.  If we resume negotiations, as we plan to do, then I think that the Palestinians will have to recognize Israel as a Jewish state; will have to also enable Israel to have the means to defend itself.  And if those conditions are met, Israel’s security conditions are met, and there’s recognition of Israel’s legitimacy, its permanent legitimacy, then I think we can envision an arrangement where Palestinians and Israelis live side by side in dignity, in security, and in peace.

And I look forward, Mr. President, to working with you, a true friend of Israel, to the achievement of our common goals, which are security, prosperity, and above all, peace.

PRESIDENT OBAMA:  Thank you.  We’re going to take a couple of questions.  We’re going to start with Steve.

Q    Mr. President, you spoke at length, as did the Prime Minister, about Iran’s nuclear program.  Your program of engagement, policy of engagement, how long is that going to last?  Is there a deadline?

PRESIDENT OBAMA:  You know, I don’t want to set an artificial deadline.  I think it’s important to recognize that Iran is in the midst of its own elections.  As I think all of you, since you’re all political reporters, are familiar with, election time is not always the best time to get business done.

Their elections will be completed in June, and we are hopeful that, at that point, there is going to be a serious process of engagement, first through the P5-plus-one process that’s already in place, potentially through additional direct talks between the United States and Iran.

I want to reemphasize what I said earlier, that I believe it is not only in the interest of the international community that Iran not develop nuclear weapons, I firmly believe it is in Iran’s interest not to develop nuclear weapons, because it would trigger a nuclear arms race in the Middle East and be profoundly destabilizing in all sorts of ways.  Iran can achieve its interests of security and international respect and prosperity for its people through other means, and I am prepared to make what I believe will be a persuasive argument, that there should be a different course to be taken.

The one thing we’re also aware of is the fact that the history, of least, of negotiation with Iran is that there is a lot of talk but not always action and follow-through.  And that’s why it is important for us, I think, without having set an artificial deadline, to be mindful of the fact that we’re not going to have talks forever.  We’re not going to create a situation in which talks become an excuse for inaction while Iran proceeds with developing a nuclear -- and deploying a nuclear weapon.  That’s something, obviously, Israel is concerned about, but it’s also an issue of concern for the United States and for the international community as a whole.

My expectation would be that if we can begin discussions soon, shortly after the Iranian elections, we should have a fairly good sense by the end of the year as to whether they are moving in the right direction and whether the parties involved are making progress and that there’s a good faith effort to resolve differences.  That doesn’t mean every issue would be resolved by that point, but it does mean that we’ll probably be able to gauge and do a reassessment by the end of the year of this approach.

Q    Thank you, Mr. President.  Aren’t you concerned that your outstretched hand has been interpreted by extremists, especially Ahmadinejad, Nasrallah, Meshal, as weakness?  And since my colleague already asked about the deadline, if engagement fails, what then, Mr. President?

PRESIDENT OBAMA:  Well, it’s not clear to me why my outstretched hand would be interpreted as weakness.

Q    Qatar, an example.

PRESIDENT OBAMA:  I’m sorry?

Q    The example of Qatar.  They would have preferred to be on your side and then moved to the extremists, to Iran.

PRESIDENT OBAMA:  Oh, I think -- yes, I’m not sure about that interpretation.  Look, we’ve been in office a little over a hundred days now -- close to four months.  We have put forward a clear principle that where we can resolve issues through negotiations and diplomacy, we should.  We didn’t expect -- and I don’t think anybody in the international community or anybody in the Middle East, for that matter -- would expect that 30 years of antagonism and suspicion between Iran and the United States would be resolved in four months.  So we think it’s very important for us to give this a chance.

Now, understand that part of the reason that it’s so important for us to take a diplomatic approach is that the approach that we’ve been taking, which is no diplomacy, obviously has not worked.  Nobody disagrees with that.  Hamas and Hezbollah have gotten stronger.  Iran has been pursuing its nuclear capabilities undiminished.  And so not talking -- that clearly hasn’t worked.  That’s what’s been tried.  And so what we’re going to do is try something new, which is actually engaging and reaching out to the Iranians.

The important thing is to make sure that there is a clear timetable of -- at which point we say these talks don’t seem to be making any serious progress.  It hasn’t been tried before so we don’t want to prejudge that, but as I said, by the end of the year I think we should have some sense as to whether or not these discussions are starting to yield significant benefits, whether we’re starting to see serious movement on the part of the Iranians.

If that hasn’t taken place, then I think the international community will see that it’s not the United States or Israel or other countries that are seeking to isolate or victimize Iran; rather, it is Iran itself which is isolating itself by willing to -- being unwilling to engage in serious discussions about how they can preserve their security without threatening other people’s security -- which ultimately is what we want to achieve.

We want to achieve a situation where all countries in the region can pursue economic development and commercial ties and trade and do so without the threat that their populations are going to be subject to bombs and destruction.

That’s what I think the Prime Minister is interested in, that’s what I’m interested in, and I hope that ends up being what the ruling officials in Iran are interested in, as well.

Don Gonyea.  Where’s Gonyea?

Q    Right here.  Thank you.  Mr. President and Mr. Prime Minister, can you each react to King Abdullah’s statement of a week ago that we really are at a critical place in the conflict and that if this moment isn’t seized and if a peace isn’t achieved now, soon, that in a year, year and a half, we could see renewed major conflict, perhaps war?  And do you agree with that assessment?

PRIME MINISTER NETANYAHU:  I think we have to seize the moment and I think we’re fortunate in having a leader like President Obama and a new government in Israel and perhaps a new understanding in the Arab world that I haven’t seen in my lifetime.  And you’re very kind to be calling me young, but I’m more than half a century old and in my 59 years in the life of the Jewish state, there’s never been a time when Arabs and Israelis see a common threat the way we see it today and also see the need to join together in working towards peace while simultaneously defending ourselves against this common threat.

I think we have -- we have ways to capitalize on this sense of urgency and we’re prepared to move with the President and with others in the Arab world if they’re prepared to move, as well.  And I think the important thing that we discussed, among other things, is how to buttress the Israeli-Palestinian peace tracks, which we want to resume right away, with participation from others in the Arab world; how we give confidence to each other that would -- changes the reality, it changes the reality on the ground, changing political realities top-down, as well, while we work to broaden the circle of peace.

And I think that the sense of urgency that King Abdullah expressed is shared by me and shared by many others and I definitely know it’s shared by President Obama.

PRESIDENT OBAMA:  Look, I think there’s an extraordinary opportunity and the Prime Minister said it well.  You have Arab states in the region -- the Jordanians, the Egyptians, the Saudis -- who I think are looking for an opportunity to break this long-standing impasse but aren’t sure how to do it, and share concerns about Iran’s potential development of a nuclear weapon.  In order for us to potentially realign interests in the region in a constructive way, bolstering, to use the Prime Minister’s word, the Palestinian-Israeli peace track is critical.

It will not be easy.  It never has been easy.  In discussions, I don’t think the Prime Minister would mind me saying to him -- or saying publically what I said privately, which is that there is a recognition that the Palestinians are going to have to do a better job providing the kinds of security assurances that Israelis would need to achieve a two-state solution; that, you know, the leadership of the Palestinians will have to gain additional legitimacy and credibility with their own people, and delivering services.  And that’s something that the United States and Israel can be helpful in seeing them accomplish.

The other Arab states have to be more supportive and be bolder in seeking potential normalization with Israel.  And next week I will have the Palestinian Authority President Abbas as well as President Mubarak here and I will deliver that message to them.

Now, Israel is going to have to take some difficult steps as well, and I shared with the Prime Minister the fact that under the roadmap and under Annapolis that there’s a clear understanding that we have to make progress on settlements.  Settlements have to be stopped in order for us to move forward.  That’s a difficult issue.  I recognize that, but it’s an important one and it has to be addressed.

I think the humanitarian situation in Gaza has to be addressed.  Now, I was along the border in Sderot and saw the evidence of weapons that had been raining down on the heads of innocents in those Israeli cities, and that’s unacceptable.  So we’ve got to work with the Egyptians to deal with the smuggling of weapons and it has to be meaningful because no Prime Minister of any country is going to tolerate missiles raining down on their citizens’ heads.

On the other hand, the fact is, is that if the people of Gaza have no hope, if they can’t even get clean water at this point, if the border closures are so tight that it is impossible for reconstruction and humanitarian efforts to take place, then that is not going to be a recipe for Israel’s long-term security or a constructive peace track to move forward.

So all these things are going to have to come together and it’s going to be difficult, but the one thing that I’ve committed to the Prime Minister is we are going to be engaged, the United States is going to roll up our sleeves.  We want to be a strong partner in this process.

I have great confidence in Prime Minister Netanyahu’s political skills, but also his historical vision and his recognition that during the years that he is Prime Minister this second go-around, he is probably going to be confronted with as many important decisions about the long-term strategic interests of Israel as any Prime Minister that we’ve seen in a very long time.  And I have great confidence that he’s going to rise to the occasion and I actually think that you’re going to see movement in -- among Arab states that we have not seen before.

But the trick is to try to coordinate all this in a very delicate political environment.  And that’s why I’m so pleased to have George Mitchell, who is standing behind the scrum there, as our special envoy, because I’m very confident that as somebody who was involved in equally delicate negotiations in Northern Ireland, he is somebody who recognizes that if you apply patience and determination, and you keep your eye on the long-term goal, as the Prime Minister articulated -- which is a wide-ranging peace, not a grudging peace, not a transitory peace, but a wide-ranging, regional peace -- that we can make great progress.

Q    Mr. President, the Israeli Prime Minister and the Israeli administration have said on many occasions -- on some occasions that only if the Iranian threat will be solved, they can achieve real progress on the Palestinian threat.  Do you agree with that kind of linkage?

And to the Israeli Prime Minister, you were speaking about the political track.  Are you willing to get into final status issues/negotiations like borders, like Jerusalem in the near future, based on the two-state solution?  And do you still hold this opinion about the linkage between the Iranian threat and your ability to achieve any progress on the Palestinian threat?

PRESIDENT OBAMA:  Well, let me say this.  There’s no doubt that it is difficult for any Israeli government to negotiate in a situation in which they feel under immediate threat.  That’s not conducive to negotiations.  And as I’ve said before, I recognize Israel’s legitimate concerns about the possibility of Iran obtaining a nuclear weapon when they have a president who has in the past said that Israel should not exist.  That would give any leader of any country pause.

Having said that, if there is a linkage between Iran and the Israeli-Palestinian peace process, I personally believe it actually runs the other way.  To the extent that we can make peace with the Palestinians -- between the Palestinians and the Israelis, then I actually think it strengthens our hand in the international community in dealing with a potential Iranian threat.

Having said that, I think that dealing with Iran’s potential nuclear capacity is something that we should be doing even if there already was peace between the Israelis and the Palestinians.  And I think that pursuing Israeli-Palestinian peace is something that is in Israeli’s security interests and the United States’ national security interests, even if Iran was not pursuing a nuclear weapon.  They’re both important.

And we have to move aggressively on both fronts.  And I think that based on my conversations with Prime Minister Netanyahu, he agrees with me that they’re both important.  That’s not to say that he’s not making a calculation, as he should, about what are some of the most immediate threats to Israeli’s security, and I understand that.

But, look, imagine how much less mischief a Hezbollah or a Hamas could do if in fact we had moved a Palestinian-Israeli track in a direction that gave the Palestinian people hope.  And if Hezbollah and Hamas is weakened, imagine how that impacts Iran’s ability to make mischief, and vice versa.

I mean, so obviously these things are related, but they are important separately.  And I’m confident that the United States, working with Israel, can make progress on both fronts.

Q    Thank you.

PRIME MINISTER NETANYAHU:  We’ve had extraordinarily friendly and constructive talks here today, and I’m very grateful to the President for that.  We want to move peace forward, and we want to ward off the great threats.

There isn’t a policy linkage, and that’s what I hear the President saying, and that’s what I’m saying too.  And I’ve always said there’s not a policy linkage between pursuing simultaneously peace between Israel and the Palestinians and the rest of the Arab world, and to trying to deal with removing the threat of a nuclear bomb.

There are causal links.  The President talked about one of them.  It would help, obviously, unite a broad front against Iran if we had peace between Israel and the Palestinians.  And conversely, if Iran went nuclear, it would threaten the progress towards peace and destabilize the entire area, and threaten existing peace agreement.

So it’s very clear to us.  I think we actually -- we don’t see closely on it, we see exactly eye to eye on this -- that we want to move simultaneously and then parallel on two fronts:  the front of peace, and the front of preventing Iran from acquiring nuclear capability.

On the front of peace, the important thing for me is to resume negotiations as rapidly as possible, and to -- and my view is less one of terminology, but one of substance.  And I ask myself, what do we end up with?  If we end up with another Gaza -- the President has described to you there’s rockets falling out of Gaza -- that is something we don’t want to happen, because a terror base next to our cities that doesn’t call -- recognize Israel’s existence and calls for our destruction and asks for our destruction is not arguing peace.

If, however, the Palestinians recognize Israel as the Jewish state, if they -- if they fight terror, if they educate their children for peace and to a better future, then I think we can come at a substantive solution that allows the two people to live side by side in security and peace and I add prosperity, because I’m a great believer in this.

So I think the terminology will take care of itself if we have the substantive understanding.  And I think we can move forward on this.  I have great confidence in your leadership, Mr. President, and in your friendship to my country, and in your championing of peace and security.  And the answer is, both come together -- peace and security are intertwined.  They’re inseparable.

And I look forward, Mr. President, to working with you to achieve both.

PRESIDENT OBAMA:  Thank you, everybody.

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History:

The Office of Federal Financial Management (OFFM) was created within the Office of Management and Budget (OM by theChief Financial Officers (CFO) Act of 1990. OFFM, led by the OMB Controller under the direction of the Deputy Director for Management, is responsible for the financial management policy of the Federal Government. OFFM responsibilities include implementing the financial management improvement priorities of the President, establishing government-wide financial management policies of executive agencies, and carrying out the financial management functions of the CFO Act.

What's New:	Summary Report of the 2008 Financial Report of the United States Government (February 2009) (12 pages, 771 kb) M-09-06, Implementation Guidance for the Federal Financial Management Improvement Act (January 9, 2009) (12 pages, 113 kb) Improving the Accuracy and Integrity of Federal Payments, 2008 Final Report  (January 8, 2009) (39 pages, 247 kb) 2009 Federal Financial Management Report  (January 7, 2009) (46 pages, 1.7 mb)
Branches:	Financial Standards and Grants Financial Analysis and Systems
Key Issues:	Agency and Government-wide Financial Reporting Federal Asset Management Financial Management Systems Grants Management Improper Payments Performance Measurement President’s Management Agenda Single Audit Travel and Purchase Cards
Organization Chart:	OFFM Organization Chart (1 page, 18 kb)

Women in the White House

Posted by Jenny Yeager, Special Assistant to the Director of the White House Office of Public Engagement

My name is Jenny Yeager and I am the Special Assistant to the Director of Public Liaison, Tina Tchen. That means that I help her and our whole team with a wide variety of events.  Whether it’s organizing one of our complex Summits, directly reaching out to constituents, meeting with our legal team, or organizing special events in the White House, one thing’s for sure, being a part of the Public Engagement team is never dull!