Tonight, President Barack Obama is delivering his State of the Union address. Here is a quick look at the key components of the speech:
Executive Action on minimum wage
President Obama is announcing that he is using his executive authority to raise the minimum wage to $10.10 for those working on new federal contracts for services.
Executive Action on environmental regulations
President Obama is announcing several key new environmental regulations that he will implement using executive authority - effectively doing an end around Congress. These include:
New fuel efficiency standards for heavy duty vehicles
The President will direct the Administration to work with states, cities and tribes to cut carbon pollution through clean energy and energy efficiency
The administration is developing new environmental standards for oil and gas drilling on public lands
President Obama is announcing new energy efficiency standards
Establish an Energy Security Trust Fund to fund research and development for advanced vehicle technologies
New tax credits for biofuels
President Obama is proposing several policy proposals aimed at tackling income inequality in the U.S. Among those proposals:
- The President is propoinge increasing the federal minimum wage. The President wants to work with Congress to pass the Harkin-Miller bill that would increase the federal minimum wage for all workers to $10.10 an hour.
- The President is calling for the extension of benefits for the long-term unemployed. These benefits expired at the end of 2013 and Senate Democrats have been working – unsuccessfully so far – on getting them extended.
- The President is discussing his efforts aimed at encouraging job creation in low-income communities. This effort is aimed at revitalizing high-poverty communities across the country by attracting private investment, improving affordable housing, expanding educational opportunities, providing tax incentives for hiring workers and investing in these areas, reducing violence, and assisting local leaders in navigating Federal programs and cutting through red tape.
- The President is announcing an effort to increase job-training opportunities particularly for low-income youth, low-income adults and the unemployed.
- The President is urging Congress to expand the Earned Income Tax Credit.
- The President is urging Congress to pass the Employment Non-Discrimination Act to protect LGBT Americans from workplace discrimination.
- Removing retirement tax breaks for the wealthiest Americans.
Creating a starter savings program for middle class americans
The President is announcing he is using his executive authority to create "myRA" (my Retirement Account) - a new "simple, safe and affordable" starter retirement savings account that will be available through employers to help Americans save for retirement. This account would be offered through a familiar Roth IRA account and will be backed by the U.S. government.
Energy and the environment
President Obama is proposing new incentives for medium and heavy-duty trucks that run on alternative fuels like natural gas.
The President is calling on Congress to work with the Administration and state and local governments to create Sustainable Shale Gas Growth Zones.
With Republican leadership in the House expected to unveil their principles for immigration reform shortly, President Obama is calling for a fix to our broken immigration system. He is calling for cracking down on employers who hire undocumented workers and for providing a path to citizenship for immigrants who pay a fine, pay their taxes, learn English and pass a background check.
President Obama is calling for a "grand bargain" that pairs comprehensive tax reform coupled with new spending on infrastructure — an offering the White House says is an olive branch to Republicans and the business community.
President Obama is announcing that he is working towards a 12-nation Trans-Pacific Partnership and has opened talks towards a comprehensive agreement with the European Union. President Obama is urging Congress to update its guidance and role in trade by passing the Trade Promotion Authority.
Reforming Fannie Mae and Freddie Mac
President Obama is seeking to reform Fannie Mae and Freddie Mac. Working with Congress, President Obama will propose four core principles for reform:
1 - putting private capital at the center of the housing finance system,
2 - end Fannie Mae and Freddie Mac's failed business model,
3 - ensure widespread access to safe and affordable mortgages, and
4 - support affordability for creditworthy first-time buyers and access to affordable rental housing for middle class families.
For more information
Please feel to reach out to McDonald Hopkins Government Strategies for more information about any of the issues mentioned above and how they may impact you and what you can do about it.
Steven C. LaTourette, President | 202.559.2600
McDonald Hopkins Government Strategies LLC
101 Constitution Avenue NW, Suite 600 East, Washington, D.C. 20001
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