06 February 2019

President Trump delivers State of the Union address

On February 5, President Trump delivered his second State of the Union address to a joint session of Congress, declaring the state of the union "strong" and calling on Congress to "govern not as two parties, but as one nation." President Trump touted a thriving economy and all-time low rates of unemployment, bolstered by historic tax cuts and the elimination of unnecessary regulations. Among the new proposals announced during the speech, President Trump called for a commitment to eliminate the HIV epidemic in the US and dedicate $500 million to fund childhood cancer research over the next 10 years. He also called for revitalizing and rebuilding America's crumbling infrastructure, reducing the price of health care and prescription drugs, finalizing new trade deals to reduce the trade deficit and protect American jobs, and announced a plan for nationwide paid family leave.

The speech comes nearly a week after it was originally planned, as Democrats and Republicans in Congress aim to reach agreement on a government funding bill and avoid another partial government shutdown on February 15. President Trump called on Congress to "pass a bill that will fund our government, protect our homeland, and secure our Southern Border."

Health:

  • President Trump said his "next major priority" is to lower the cost of health care and prescription drugs, along with protecting patients with pre-existing conditions.
  • He cited the administration's efforts to lower drug prices and called on Congress to address the problem of "global freeloading" while requiring transparency from drug companies, insurance companies and hospitals to foster competition and drive down prices.
  • The President's proposed budget will ask Congress to eliminate the HIV epidemic in the US and provide $500 million to fund research for childhood cancer over 10 years.
  • President Trump also asked Congress to pass legislation to prohibit late-term abortion.

Trade:

  • President Trump called for "reversing decades of calamitous trade policies" and noted his imposition of $250 billion of tariffs on Chinese goods.
  • President Trump called on Congress to pass the U.S.-Mexico-Canada Agreement to bring back manufacturing jobs, expand American agriculture and protect intellectual property.
  • The President asked Congress to pass the U.S. Reciprocal Trade Act allowing for reciprocal tariffs.

Tax:

President Trump touted his administration's "historic reductions in taxes and regulations," noting the doubling of the child tax credit and "virtual" ending of the estate tax.

Infrastructure:

President Trump asked for both parties to unite "for a great rebuilding of America's crumbling infrastructure," including investments in "cutting edge industries of the future."

The White House distributed a number of Fact Sheets related to the President's address, available here.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Any member of the group, at (202) 293-7474.

Document ID: 2019-0313