Remarks by the President on Fuel Efficiency Standards of Medium and Heavy-Duty Vehicles

Safeway Distribution Center
Upper Marlboro, Maryland

11:30 A.M. EST

THE PRESIDENT:  Well, good morning, everybody.  (Applause.)  It is good to be here.  And I want to thank Jack Jacobs and all the folks at Safeway for having us here today, at this busy distribution center where delivery trucks get everything from Doritos to diapers where they need to go.  And by the way, I have a little soft spot for Safeway in my heart because some of you know I went to high school in Hawaii and I was living with my grandparents, and our main grocery store was Safeway.  It was right down the way.  (Applause.)  And so my grandmother would send me out to go shopping at Safeway, and everybody there always treated me very well.  So I very much appreciate the good work you guys do.

And I want to thank all the workers and businesspeople and labor leaders and environmental leaders who are here today as we take another big step to grow our economy and reduce America’s dependence on foreign oil.

In my State of the Union address, I said that this would be a year of action, and I meant it.  So over the past three weeks, I’ve acted to require federal contractors to pay their employees a fair wage of at least $10.10 an hour, because we believe in a higher minimum wage.  (Applause.)  I’ve ordered an across-the-board reform of job training programs so we can train workers with the skills that employers actually need and match them to the good jobs that are out there right now needing to be filled.  I directed the Treasury Secretary to create something we're calling “myRA” -- it's a new way to help working Americans start saving for retirement.  And we've brought together business leaders who’ve committed to helping more unemployed Americans find work, no matter how long they’ve been looking.

So the point is I’m eager to work with Congress wherever I can -- but whenever I can act on my own to expand opportunity for more Americans and help build our middle class, I'm going to do that. 

And all of you I think understand that although the economy has been doing better, we've spent the past five years fighting our way back from the worst recession of our lifetimes.  Now, the economy is growing.  Our businesses have created over 8.5 million new jobs over the past four years.  The unemployment rate is actually the lowest it’s been in over five years.  But the trends, the long-term trends that have hurt middle-class families for decades have continued -- folks at the top doing better than ever before; average wages and incomes have barely budged.  Too many Americans are working harder than ever just to keep up.

So our job is to not only get the economy growing but also to reverse these trends and make sure that everybody can succeed.  We’ve got to build an economy that works for everybody, not just the fortunate few.  Opportunity for all -- that's the essence of America.  No matter who you are, no matter where you come from, no matter how you start out, if you're willing to work hard and take responsibility, you can succeed.

So I’ve laid out an opportunity agenda to help us do that.  Part one is create more new jobs that pay good wages -- jobs in manufacturing, energy, exports, innovation.  Part two, we've got to train folks with the skills they need to fill those jobs.  Part three, we've got to guarantee every child access to a world-class education.  Part four is making sure that the economy rewards hard work with equal pay for equal work and wages you can live on, savings you can retire on, health insurance you can count on that's there when you need it.

Now, there are very few factors that are helping grow our economy more, bringing more good jobs back to America than our commitment to American manufacturing and American energy.  And that’s why we’re here today.

Five years ago, we set out to break our dependence on foreign oil.  And today, America is closer to energy independence than we’ve been in decades.  For the first time in nearly 20 years, America produces more oil here at home than we buy from other countries.  Our levels of dangerous carbon pollution that contributes to climate change has actually gone down even as our production has gone up.  And one of the reasons why is because we dedicated ourselves to manufacturing new cars and new trucks that go farther on a gallon of gas -- and that saves families money, it cuts down harmful pollution, and it creates new advances in American technology.

So for decades, the fuel efficiency standards of our cars and trucks was stuck in neutral even as other kinds of technology leapt forward.  And that left families and businesses and our economy vulnerable to fluctuations in oil prices.  Every time oil prices shot up the economy got hurt.  Our automakers were in danger of being left in the dust by foreign automakers.  Carbon pollution was going unchecked, which was having severe impacts on our weather.

And that’s why, after taking office, my administration worked with automakers, autoworkers, environmental advocates, and states across the country, and we set in motion the first-ever national policy aimed at both increasing gas mileage and decreasing greenhouse gas pollution for all new cars and trucks sold in the United States.  And as our automakers retooled and prepared to start making the world’s best cars again, we aimed to raise fuel economy standards to 35.5 miles per gallon for a new vehicle by 2016. 

AUDIENCE MEMBER:  Wow!

THE PRESIDENT:  Yeah, wow.  (Laughter and applause.) 

That was an increase of more than eight miles per gallon over what cars had averaged at the time.  And what we were clear about was if you set a rule, if you set a clear goal, we would give our companies the certainty that they needed to innovate and out-build the rest of the world.  They could figure it out if they had a goal that they were trying to reach.  And thanks to their ingenuity and hard work, we’re going to meet that goal. 

Two years later, we’ve already seen enormous progress, and we’re building on that progress by setting an even more ambitious target:  We’re going to double the distance our cars and light trucks can go on a gallon of gas by 2025.  We’re going to double it.  And that means -- (applause) -- that’s big news.  Because what it means is you’ve got to fill up every two weeks instead of every week, and that saves the typical family more than $8,000 at the pump over time.  I’m assuming you can use $8,000 -- (laughter and applause) -- that you’re not paying at the gas station.  And, in the process, it cuts American oil consumption by 12 billion barrels. 

So we let the automakers decide how they were going to do it.  We set the goal and we said, go figure it out.  And they invested in innovative and cost-effective technologies.  And some are already making cars that beat the target of nearly 55 miles per gallon.  They’ve got plug-in hybrids.  They’ve got electric vehicles.  They’re taking advantage of the investments that the Recovery Act made in American advances in battery technology.  So cars are getting better and they’re getting more fuel-efficient all the time. 

And for anybody who said this couldn’t be done or that it would hurt the American auto industry, the American auto industry sold more cars last year than any time since 2007.  (Applause.)  And since we stepped in to help the automakers retool, the American auto industry has created almost 425,000 new jobs. 

So we raised fuel efficiency, helped consumers, helped improve air quality, and we’re making better cars than ever and the automakers are hiring more folks again for good jobs all across the country.  (Applause.)  More plants are running at full capacity -- some are even running three shifts, 24 hours a day -- churning out some of the most high-tech, fuel-efficient, high-performance cars in the world.

And that’s a story of American ingenuity, American grit, and everybody has a right to be proud of it.  But today we’re taking the next step. 

Heavy-duty trucks account for just 4 percent of all the vehicles on the highway.  I know when you’re driving sometimes it feels like it’s more -- (laughter) -- but they’re only 4 percent of all the vehicles.  But they’re responsible for about 20 percent of carbon pollution in the transportation sector.  So trucks like these are responsible for about 20 percent of our on-road fuel consumption.  And because they haul about 70 percent of all domestic freight -- 70 percent of the stuff we use, everything from flat-screen TVs to diapers to produce to you name it -- every mile that we gain in fuel efficiency is worth thousands of dollars of savings every year. 

So that’s why we’re investing in research to get more fuel economy gains.  And thanks to a partnership between industry and my administration, the truck behind me was able to achieve a 75 percent improvement in fuel economy over the last year -- 75 percent.  That’s why we call this “SuperTruck.”  (Laughter.)  It’s impressive, this one right here, as well.  I mean, these are -- first of all, they’re really big.  (Laughter.)  But you can see how they’ve redesigned the truck in order for us to save fuel economy. 

And improving gas mileage for these trucks are going to drive down our oil imports even further.  That reduces carbon pollution even more, cuts down on businesses’ fuel costs, which should pay off in lower prices for consumers.  So it’s not just a win-win, it’s a win-win-win.  You’ve got three wins.

AUDIENCE:  Right!

THE PRESIDENT:  In 2011, we set new standards for medium- and heavy-duty trucks that take effect this year and last until 2018.  Three weeks ago, in my State of the Union address, I said we’d build on that success.  Today, I’m directing the Secretary of Transportation, Anthony Foxx, who is right here -- former mayor of Charlotte -- (applause) -- and Gina McCarthy, the Administrator of EPA -- (applause) -- two outstanding public servants -- their charge, their goal is to develop fuel economy standards for heavy-duty trucks that will take us well into the next decade, just like our cars.  And they’re going to partner with manufacturers and autoworkers and states and other stakeholders, truckers, to come up with a proposal by March of next year, and they’ll complete the rule a year after that.

And businesses that buy these types of trucks have sent a clear message to the nearly 30,000 workers who build them:  We want trucks that use less oil, save more money, cut pollution.  So far, 23 companies have joined our National Clean Fleets Partnership to reduce their oil consumption or replace their old fleets of trucks with more fuel-efficient models.  And, collectively, they operate about 1 million commercial vehicles nationwide. 

So this is a lot of companies, and some of them are competitors.  And if rivals like PepsiCo and Coca-Cola, or UPS and FedEx, or AT&T and Verizon -- if they can join together on this, then maybe Democrats and Republicans can do the same.  (Applause.)  Maybe Democrats and Republicans can get together.  (Applause.)  

So when you see these companies’ new electric or natural gas-powered delivery or garbage trucks, it’s due to this partnership.  And the reason we’re here is because Safeway was an early leader on this issue.  By improving the aerodynamics of its trucks, investing in larger trailers, more efficient tires, Safeway has improved its own fuel efficiency.  And the results are so solid that Safeway now encourages all the companies it hires to ship its products to do the same.

So to help our businesses and manufacturers meet this new goal, we’re offering new tax credits -- both for companies that manufacture heavy-duty alternative-fuel vehicles and those that build fuel infrastructure so that trucks running on biodiesel or natural gas or hybrid electric technology, they’ll have more places to fill up.

Let me say this.  The goal we’re setting is ambitious, but these are areas where ambition has worked out really well for us so far.  Don’t make small plans, make big plans.  And anybody who had dire predictions for the auto industry, said we couldn’t do it, manufacturers couldn’t bring jobs back to America -- every time they say that they’re proven wrong.  Every time somebody says you can’t grow the economy while bringing down pollution, it’s turned out they’ve been wrong.  (Applause.)  Anybody who says we can’t compete when it comes to clean energy technologies like solar and wind, they’ve had to eat those words.  You can’t bet against American workers or American industry.  You can’t bet against America.  Otherwise you’re going to lose money every time, because we know how to do this when we set broad, ambitious goals for ourselves.  (Applause.)

So from day one, we’ve known we had to rebuild our economy and transition to a clean-energy future, and we knew it wouldn’t be easy or quick, and we’ve got a lot of work to do on both counts.  But the economy is growing.  We’re creating jobs.  We’re generating more clean energy.  We’re cutting our dependence on foreign oil.  We’re pumping out less dangerous carbon pollution.  If we keep going down this road, then we’re going to have a future full of good-paying jobs. 

We’ve got assembly lines that are humming with the components of a clean energy age.  We got more of the best trucks and cars in the world designed and engineered and made in America. 

If we keep on going, we’re going to leave a better future for our children.  And I’m proud of Safeway and all its workers for helping to show us the way.  If it can be done here, it can be done all across the country. 

So congratulations to all of you.  Thank you and God bless you.  God bless America.  (Applause.)

END
11:47 A.M. EST

Remarks by the President at House Democratic Issues Conference

Hyatt Regency Chesapeake Bay
Cambridge, Maryland

10:43 A.M. EST

THE PRESIDENT:  Thank you.  Thank you, guys.  (Applause.)  Thank you.  Everybody, have a seat.  Thank you so much.  (Applause.)  Well, it is good to see you.  Joe, thank you for the wonderful introduction.  Let me be the first to say, Happy Valentine’s Day to our fearless leader, Nancy Pelosi.  (Applause.)  Paul will hopefully get you more than just a thank-you.

To Steny, to Jim, Xavier, Steve Israel -- who’s doing an extraordinary job under very difficult circumstances -- (applause) -- Debbie Wasserman Shultz, who is putting in more miles than just about anybody I know -- (applause) -- and all of you.  It’s great to see you. 

We just saw each other at the White House fairly recently, so I'm not going to give a long speech here.  I want to spend most of my time answering some more questions.  But let me just make a couple observations since we saw each other.  First of all, I stated in our State of the Union that the single most important thing we have to do -- not just as a party, but as a country -- is make sure that there’s opportunity for every single person; that we are focused every single day in this town -- or in Washington -- on making sure that if you're willing to work hard, if you're willing to take responsibility, that you can get ahead.  It doesn’t matter where you live, what circumstances you were born into, what you look like, who you love, you should be able to make it here in America.

And as I said at the State of the Union, I want to work with Congress to make that happen, but I'm not going to wait, because there’s too much to do.  (Applause.)  And America does not believe in standing still.  America insists on moving forward.

We laid out some very specific ways that we can move the country forward, breaking them down into a few categories:  Number one, creating more good jobs that pay good wages.  Number two, making sure that folks are trained to fill those good jobs. Number three, making sure that our kids have the best education  in the world.  And number four, making sure that hard work pays off, that people aren’t poor if they’re working full-time, that they have some semblance of retirement security, that they can count on health care if, heaven forbid, something happens to them.

And already, just in the last couple of weeks, we’ve put forward a range of executive actions that are going to make a difference.  So, yesterday, for example, I had a chance to be with a group of minimum wage workers for federal contractors -- these are folks who are washing dishes, or cleaning clothes on military bases or facilities -- and sometimes the debates on Capitol Hill get so abstract, and to be next to folks -- the average age, by the way, 35.  These aren’t teenagers, these are folks who are looking after families and trying to raise kids.  And to see what it would mean to them for us to have a federal minimum wage of $10.10 an hour, and how much relief that would give them, and how committed they were to the American Dream and getting ahead and just hoping that somebody was standing up for them -- it reminded me of why I'm a Democrat.  (Applause.)  and it reminded me of why I'm so proud of this caucus, because you're standing up on behalf of them.

And so we signed the executive order -- these folks are going to get a raise.  And what I said yesterday is that now it's time for Congress to act because America deserves a raise.  (Applause.)

I pointed out yesterday, as I pointed out at the State of the Union, that the majority of low-wage workers are women, which is why we're going to keep on pushing to make sure that we have equal pay for equal work -- (applause) -- and we have sensible family policies.  Because as I said at the State of the Union, when women succeed America succeeds.  I still believe that.  (Applause.)

We've traveled to manufacturing plants up in Wisconsin to talk about how we can continue to accelerate advanced manufacturing and technology in this country.  And we've got some great possibilities to create hubs that keep us on the cutting-edge.  We've signed executive orders to advance the kind of job training that is going to help people train for the jobs that actually exist and link up businesses with our community colleges. 

We've already through executive action set up a new retirement account, MyRA, that allows folks to get a starter retirement, because a whole lot of people don’t have 401(k)s to save. 

Across the board, we’re moving.  But as I said at the State of the Union, and I want to repeat today, we can get a whole lot more done if we’ve got Congress working with us.  And this caucus has shown time and time again under the most difficult circumstances the kind of courage and unity and discipline that has made me very, very proud.

And I was just talking to Nancy before I came out here.  The fact that we are no longer going to see, I believe, anybody try to hold our government hostage and threaten the full faith and credit of the United States of America in order to contract policy concessions, the fact that we were able to pass a clean debt limit is just one example of why when you guys are unified, you guys stick together, this country is better off.  And I could not be more thankful and more appreciative and prouder of what you’re doing.  (Applause.)

Just a couple of more points.  Number one, you’ve seen reports over the last couple of days that we actually slightly exceeded our targets for ACA signups and enrollments this past month, in the month of January.  (Applause.)  We now have well over 3.5 million people who have signed up and are getting insurance through the marketplaces for the first time.  That does not count the close to 7 million folks who have signed up for Medicaid because of the law that you passed, or the 3 million young people who are staying on their parents’ plans.  We’re starting to see data already that the uninsured rate is coming down.  We are going to keep on pushing on this to make sure that here in America, everybody can enjoy the kind of financial security and peace of mind that good quality health insurance provides.  (Applause.)

And I just want to say thank you for all of you hanging in there tough on an issue that I think 10 years from now, five years from now, we’re going to look back and say this was a monumental achievement that could not have happened had it not been for this caucus.
 
And, finally, there are some big things that we have to do that I cannot do through executive action where we have to get Congress and where the American people are on our side.  A federal minimum wage law is one of them.  Another, though, is making sure that we’ve got a smart immigration policy in this country that grows our economy -- (applause) -- gets people out of the shadows, makes sure that our businesses are thriving.  That’s got to be a top priority.  We’re going to have to keep on working on that.
 
And I believe, frankly, that there are folks on the other side of the aisle who genuinely want to see this done, but they’re worried and they’re scared about the political blowback. And, look, everybody here is an elected official and we can all appreciate the maneuverings that take place, particularly in an election year.  But when it comes to immigration reform, we have to remind ourselves that there are people behind the statistics, that there are lives that are being impacted -- that punting and putting things off for another year, another two years, another three years, it hurts people.  It hurts our economy.  It hurts families.
 
And part of what I’d like to think makes us Democrats is not simply some abstract ideological set of beliefs, but the fact that we’re reminded every single day that we’re here to help a whole bunch of folks out there -- our neighbors, our friends, our communities -- who are struggling still and need our help.  And they’re counting on us.  The good thing is they’ve got some outstanding members of Congress who are willing to fight for them regardless of the political cost, starting with your leader Nancy Pelosi. 

I’m grateful for you.  And I’m looking forward to making sure that this year we keep on making progress even if we continue to get a little resistance from the other side.  The American people know that we could be breaking out if Washington gets its act together, and it’s important for us to lead that process. 

Thank you very much.  (Applause.)

END
11:02 A.M. EST

Remarks by the President on the California Drought

Joe Del Bosque’s Field Los Banos, California

4:55 P.M. PST

THE PRESIDENT:  Well, first of all, I want to thank Joe and Maria Del Bosque and their beautiful daughters for showing Governor Brown and me around their farm. 

Joe has got an incredible story.  The son of a migrant farmworker, farm work is how he put himself through college.  He’s been a farmer for most of his life.  He started by going around to other folks’ land and saying, I'll grow some cantaloupes for you as long as you pay me for what we produce, and over the years was able to develop this amazing business and not only start growing cantaloupes, but almonds and cherries and all kinds of other good stuff.

“There are three things that make farming work in California,” according to Joe, “soil, water, and people.”  And in the little free time they have, Joe and Maria work to improve the health and safety of farm workers.  There are a lot of people who are dependent on him year-round, and a lot of people who work seasonally with Joe and Maria, and their livelihoods depend on the functioning of these farms.

But today, we’re here to talk about the resource that’s keeping more and more California’s farmers and families up at night, and that is water -- or the lack of it. 

As anybody in this state could tell you, California’s living through some of its driest years in a century.  Right now, almost 99 percent of California is drier than normal -- and the winter snowpack that provides much of your water far into the summer is much smaller than normal.  And we could see that as we were flying in -- Jim and Barbara and Dianne and I were flying over the mountain ranges and could see, even though there was a little bit of snow that just came in the last couple of days, that it’s nothing like it is normally.

While drought in regions outside the West is expected to be less severe than in other years, California is our biggest economy, California is our biggest agricultural producer, so what happens here matters to every working American, right down to the cost of food that you put on your table. 

And that’s why, last month, Governor Brown declared a state of emergency, directing state officials to prepare for drought conditions.  And together, our administrations launched a coordinated response.  Secretary Vilsack, who is here today, declared 27 counties as primary natural disaster areas, making farmers and ranchers eligible for emergency loans.  And over the past two weeks, his team at USDA and Mike Connor’s team at the Interior Department have released new funds for conservation and irrigation; announced investments to upgrade water infrastructure; and partnered with California to stretch the water supply as much as possible.

Today, I’m want to announce new actions that we can take together to help these hardworking folks.

First, we’re accelerating $100 million of funds from the farm bill that I signed last week to help ranchers.  For example, if their fields have dried up, this is going to help them feed their livestock. 

Second, last week, we announced $20 million to help hard-hit communities, and today, we’re announcing up to $15 million more for California and other states that are in extreme drought. 

Third, I’m directing the Interior Department to use its existing authorities, where appropriate, to give water contractors flexibility to meet their obligations. 

And fourth, I’m directing all federal facilities in California to take immediate steps to curb their water use, including a moratorium on water usage for new, non-essential landscaping projects.

A bipartisan bill written by your outstanding Senators, Dianne Feinstein and Barbara Boxer, as well as your own outstanding Representative and almond farmer, Jim Costa, includes similar ideas.  And I hope that Congress considers the legislation that they have crafted soon, work through some of the concerns that have been expressed -- let’s make sure that we're getting some short-term relief to folks, but also long-term certainty for people who are going to be harmed by this drought.

These actions will help, but they’re just the first step.  We have to be clear:  A changing climate means that weather-related disasters like droughts, wildfires, storms, floods are potentially going to be costlier and they’re going to be harsher. Droughts have obviously been a part of life out here in the West since before any of us were around and water politics in California have always been complicated, but scientific evidence shows that a changing climate is going to make them more intense.

Scientists will debate whether a particular storm or drought reflects patterns of climate change.  But one thing that is undeniable is that changing temperatures influence drought in at least three ways:  Number one, more rain falls in extreme downpours -- so more water is lost to runoff than captured for use.  Number two, more precipitation in the mountains falls as rain rather than snow -- so rivers run dry earlier in the year.  Number three, soil and reservoirs lose more water to evaporation year-round.

What does all this mean?  Unless and until we do more to combat carbon pollution that causes climate change, this trend is going to get worse.  And the hard truth is even if we do take action on climate change, carbon pollution has built up in our atmosphere for decades.  The planet is slowly going to keep warming for a long time to come.  So we’re going to have to stop looking at these disasters as something to wait for; we've got to start looking at these disasters as something to prepare for, to anticipate, to start building new infrastructure, to start having new plans, to recalibrate the baseline that we're working off of.

And everybody, from farmers to industry to residential areas, to the north of California and the south of California and everyplace in between, as well as the entire Western region are going to have to start rethinking how we approach water for decades to come.

And as I said when I was meeting with the town hall group, we can't think of this simply as a zero-sum game.  It can't just be a matter of there’s going to be less and less water so I'm going to grab more and more of a shrinking share of water.  Instead what we have to do is all come together and figure out how we all are going to make sure that agricultural needs, urban needs, industrial needs, environmental and conservation concerns are all addressed.  And that's going to be a big project, but it's one that I'm confident we can do.

Part of the Climate Action Plan that I put forward last summer is designed to protect critical sectors of our economy and prepare the United States for the effects of climate change that we’re just not going to be able to avoid.  So, last week, for example, the USDA announced seven new “climate hubs” to help farmers and ranchers adapt their operations to a changing climate -- one of which will be at UC Davis, focused on resilience for California’s specialty crops. 

The budget that I sent to Congress -- the budget that I send to Congress next month will include $1 billion in new funding for new technologies to help communities prepare for a changing climate, set up incentives to build smarter, more resilient infrastructure.  And finally, my administration will work with tech innovators and launch new challenges under our Climate Data Initiative, focused initially on rising sea levels and their impact on the coasts, but ultimately focused on how all these changes in weather patterns are going to have an impact up and down the United States -- not just on the coast but inland as well -- and how do we start preparing for that.  And that has to be work that we do together.  This cannot be a partisan endeavor.

One of the great things about that town hall that I just came out of -- not everybody agreed on anything -- (laughter) -- except people did agree that we can't keep on doing business as usual.  That's what people did understand -- that there has to be a sense of urgency about this. 

And issues like the federal government helping states to build infrastructure to adapt and ensure economic development and that families and workers are able to prosper -- there’s nothing new about that.  We just saw a photograph of President Kennedy and current Governor Brown’s dad building some of the aquifers that have been so important to the economy of this state for decades.  If we were able to do that then, we should be able to do it now.  It's just a matter of us making sure that we're not putting politics ahead of trying to get things working.

Our work with Governor Brown and his administration is going to continue.  Californians have all had to come together and already make sacrifices, big and small, to help your neighbors and your state get through this.  The good news is California is always on the cutting-edge.  Already you use water far more efficiently than you did decades ago.  You do it smarter.  Joe was explaining just how this drip irrigation that you see in this region has made many of these farms much more efficient when it comes to water utilization.  And so we know that we can innovate and meet this challenge, but we've got to start now.  We can't wait.

So I want to make sure that every Californian knows -- whether you’re NorCals, SoCal, here in the Central Valley -- your country is going to be there for you when you need it this year. But we're going to have to all work together in the years to come to make sure that we address the challenge and leave this incredible land embodied to our children and our grandchildren in at least as good shape as we found it.

So, thank you very much, everybody, for the great work that you guys do.  And I've already told the Governor as well as all your outstanding representatives here that our administration is going to stay on this and we are prepared to cooperate with local, state officials throughout.  And that's not just in California, because we're going to see some similar problems in places like Colorado, Nevada, some of the neighboring Western states, and so part of the conversation is also going to have to be a regional conversation. 

But this is something that I'm very committed to.  We're going to make sure to get it done, working together.  Thank you so much, everybody.  (Applause.)

END                5:08 P.M. PST

Remarks by the President on Signing of Executive Order

East Room

2:18 P.M. EST

THE PRESIDENT:  Well, welcome to the White House, everybody. I know you had to come here before you go buy some shovels and some salt.  (Laughter.)  It sounds like we may get a little snow. But I very much appreciate everybody being here.  I want to thank, first and foremost, the workers who are with me here this afternoon.  (Applause.)  And I want to thank two champions for all hardworking Americans:  We've got Secretary of Labor Tom Perez -- (applause) -- he’s in the house.  Where is Tom?  Right here.  Tom is right here.  (Applause.)  I didn’t know where he was.  And we've got an outstanding Congressman -- who’s used to snow because he’s from Minnesota -- Congressman Keith Ellison.  (Applause.)
 
Now, it’s been just over two weeks since I delivered my State of the Union address, and I said this year would be a year of action, and I meant it.  Over the past 14 days I’ve ordered an across-the-board reform of our job training programs to train folks with the skills that employers need, and then match them up with good jobs that are ready to be filled right now. 

I’ve directed the Treasury to create something we're calling “MyRA” -- sort of like an IRA, but it's MyRA.  And that's a new way for Americans to start saving for retirement.  And you can start with as little as $25, $50 and start building up a little bit of a nest egg and get tax benefits for doing it so. 

We’ve rallied the leaders of some of America’s biggest high-tech companies to help us make sure that all of our kids have access to high-speed Internet and up-to-date technology in their classroom so that they’re learning the skills that they need for the new economy.

We’ve brought together business leaders who are committed to hiring more unemployed Americans, particularly long-term unemployed who oftentimes are discriminated against.  They’re in a Catch-22 -- they haven't had a job for a while and then the employer is not willing to look at their resume because they haven't had a job for a while. 

So the point is I’m eager to work with Congress whenever I can find opportunities to expand opportunity for more families.  But wherever I can act on my own, without Congress, by using my pen to take executive actions, or picking up the phone and rallying folks around a common cause, that’s what I’m going to do.  (Applause.)  

And so that brings me to the issue we're going to talk about today.  After the worst economic crisis in generations, our economy has been growing for the past four years.  (Applause.)   And our businesses have created 8.5 million new jobs.  Unemployment rate has come down.  But while those at the top are doing better than ever, -- corporate profits have been high, the stock market has been high -- average wages have barely budged.  So you’ve got too many Americans who are working harder than ever before just to get by, but they can't seem to get ahead, can't seem to make all the ends meet. 

And that’s been true since long before the recession hit.  We’ve got to reverse those trends.  We’ve got to build an economy that works for everybody, not just the fortunate few.  And we’ve got to restore opportunity for everybody, so that no matter who you are, no matter how you started out, no matter what you look like, no matter what your last name is, you can get ahead in America if you're willing to work hard and take responsibility for your life.  (Applause.)  Right? 

So the opportunity agenda I’ve laid out is going to help us do just that.  Part one of this agenda is more new jobs that pay a good wage -- jobs in manufacturing, and exports, and energy, and innovation.  Part two:  We've got to train the folks with the skills to fill those jobs.  Part three:  We've got to make sure every child gets a world-class education.  And part four:  We've got to make sure that the economy rewards hard work for every American.

Making hard work pay off with economic security and decent wages and benefits is what we’re about here today.  It means making sure women earn equal pay for equal work.  (Applause.)   It means making sure workers have the chance to save for a dignified retirement.  (Applause.)  It means access to affordable health insurance that gives you the freedom to change jobs or be your own boss, and the peace of mind that it will be there for you when you get sick and you need it most.  (Applause.) 

So if you know anybody who doesn’t have health insurance right now -- (laughter) -- send them to healthcare.gov.  The website is working.  (Laughter.)  Sign them up.  You can get health care for less than your cellphone bill for a lot of folks.

But it also means that in the wealthiest nation on Earth, nobody who works full-time should have to live in poverty.  (Applause.)  Nobody.  Not here in America.  (Applause.)

Now, it was one year ago today -- one year ago today -- that I first asked Congress to raise the federal minimum wage -- a federal minimum wage that in real terms is worth about 20 percent less than it was when Ronald Reagan took office -- 20 percent less, a fifth less. 

So this afternoon, I’ve invited some of the folks who would see a raise if we raised that federal minimum wage.  They happened to join me here at the White House.  And like most workers in their situation, they’re not teenagers -- they look like teenagers, some of them are very young looking.  (Laughter.) But they’re not teenagers taking on their first job.  They’re adults -- average age is 35 years old.  A majority of lower-wage jobs are held by women.  Many of them have children that they’re supporting.  These are Americans who work full-time, often to support a family, and if the minimum wage had kept pace with our economic productivity, they’d already be getting paid well over $10 an hour. 

Instead, the minimum wage is still just $7.25.  And when Congress refuses to raise it, it loses value -- because there’s a little bit inflation, everything else starts costing a little bit more -- even though inflation has been pretty low, it’s still costing a little bit more each year.  That means each dollar isn’t going as far and they’ve got a little bit less.  So over the past year, the failure of Congress to act was the equivalent of a $200 pay cut for these folks -- for a typical minimum wage worker.  That’s a month worth of groceries, maybe two months’ worth of electricity.  It makes a big difference for a lot of families.

Now, the good news is that in the year since I first asked Congress to raise the minimum wage, six states went ahead and passed laws to raise theirs.  (Applause.)  We appreciate that. You got more states and cities and counties that are taking steps to raise their minimum wage as we speak.  And a lot of companies are doing it, too -- not out of charity, but because they’ve discovered it’s good business. 

Two weeks ago, I visited a Costco store in Maryland.  Now, Costco is a very profitable company.  Its stock has done great.  It’s expanding all over the place.  But their philosophy is higher wages are a smart way to boost productivity and reduce turnover.  If employees are happy and feel like the company is invested in them, then they’re going to do more for the company. They’re going to go above and beyond. 

And when I was over at the Costco store I was meeting folks who had started off at the cash register and now were in supervisory positions, and had been there for 20 years, and you could see the kind of pride that they had in the company because the company cared about them.  I even received a letter the next day from a woman who saw my visit on TV -- she decided to apply for a job at Costco.  (Laughter.)  She said, let me apply for a job at Costco.  They look like they can do a good job. 

So across the country, owners of small and large businesses are recognizing that fair wages and higher profits go hand in hand; it’s good for the bottom line.

And as America’s chief executive, I agree.  So while Congress decides what it’s going to do -- and I hope this year, and I'm going to work this year and urge this year that they actually pass a law -- today, I’m going to do what I can to help raise working Americans’ wages.  (Applause.) 

So today, I’m issuing an executive order requiring federal contractors to pay their employees a fair wage of at least $10.10 an hour -- (applause) -- $10.10 an hour.  (Applause.)

This will make a difference for folks.  Right now, there’s a dishwasher at Randolph Air Force Base in Texas making $7.76 an hour -- $7.76 an hour.  There’s a fast-food worker at Andrews, right down the street, making $8.91 an hour.  There’s a laundry worker at Camp Dodge in Iowa making $9.03 an hour.  Once I sign this order, starting next year, as their contracts come up, each of them and many of their fellow coworkers are going to get a raise.  And by the way, that includes folks who get paid in tips -- they’ll get a raise, too.  (Applause.)  A tip wage has gone up even slower than the regular minimum wage.

So just as it’s good for companies across the country, this will be good for America’s bottom line -- for contractors and for taxpayers.  The opponents of the minimum wage have been using the same arguments for years, and time and again they’ve been proven wrong.  Raising the minimum wage is good for business, and it's good for workers, and it's good for the economy.  Put more money in these folks’ pockets, that means they got some money to go shopping, which in turn means the business has more customers -- (applause) -- which means they may hire more workers and make more of a profit.  (Applause.) 

And let’s not forget -- not only is it good for the economy, it’s the right thing to do.  (Applause.)  There’s a simple moral principle at stake -- if you take responsibility and you work as hard as these folks work, if you work full-time, you shouldn’t be living in poverty.  Not in America.  We believe that.  (Applause.)  

And this executive order will cover Americans with disabilities -- (applause) -- because this principle doesn’t just apply to some of us; it applies to all of us.  (Applause.) 

So I’m going to keep doing whatever I can to raise working Americans’ wages.  And I would ask any business leader out there, any governor, any mayor, any local leader listening, do what you can to raise your employees’ wages; to work to raise the wages of citizens in your jurisdiction.  They’ll support these efforts.  A majority of Americans -- not just Democrats, not just independents, but Republicans, too -- support raising the minimum wage.  (Applause.)  It's the right thing to do.  So that’s something Congress should keep in mind this year. 

There’s a bill right now in front of both the House and the Senate that would boost America’s minimum wage to $10.10 an hour -- just like I'm doing with this executive action.  It’s easy to remember:  10-10 -- 10-10.  Let’s get that done.  Raise the federal minimum wage to $10.10 wouldn’t just raise wages for minimum-wage workers, its effect would lift wages for about 28 million Americans.  It would lift millions of Americans out of poverty immediately.  (Applause.)  It would help millions more work their way out of poverty -- without requiring a single dollar in new taxes or spending.  (Applause.)  It's the right thing to do.

Just last month, 600 economists, including seven Nobel Prize winners, wrote the leaders of houses of Congress to remind them that the bill before Congress would have little or no negative effect on hiring, on jobs.  So it's not going to depress the economy.  It will boost the economy.  (Baby says, “Yes!”)  Yes!  (Laughter and applause.)  It will give more businesses more customers with more money to spend.  It will grow the economy for everybody.  So -- yeah!  (Laughter.)  He’s excited about it.  (Laughter.) 

So members of Congress have a pretty clear choice to make right now:  Raise our workers’ wages, grow our economy -- or let wages stagnate further, and give workers what amounts to another pay cut this year.  Restore unemployment insurance for Americans still looking for that job -- (applause) -- or expose them further to hardship.  (Applause.)  Members of Congress, you can help people make progress in their own lives, or you can hinder that progress.

And every American deserves to know where your elected representative stands on this issue.  So ask your senator; ask your representative in the House:  Do you support raising the federal minimum wage to $10.10 an hour?  If they say, yes, tell them “good job.”  (Laughter.)  They don’t hear that that often so -- (laughter) -- give them a pat on the back, give them a hug, let them know “way to go.”  That's the right thing to do.  If they say, no -- be polite, I mean, don't just yell at them, but say, “Well, why not?”  Ask them to reconsider siding with an overwhelming majority of Americans.  Encourage them to say yes.  Give America a raise.  

So I’m about to sign this executive order.  When you hear me talking about my pen and my phone to make a difference for middle-class Americans and those working to get into the middle class, this is exactly what I mean.  I’m doing to do what I can. Congress should do what it needs to do.  I will not give up on this fight, no matter how long it takes.  America deserves a raise.  (Applause.)  Working families deserve to know some more economic security in their own lives.  (Applause.) 

We've got to create new jobs, strengthen the middle class, build new ladders of opportunity for folks working their way into the middle class -- just like these folks are doing right here.  There are millions of Americans who could just use a little bit of boost -- millions of Americans outside Washington who are tired of the old, stale political arguments, or tired of folks just looking out for people who can afford big lobbyists and big campaign contributions.  There are folks out there who want to see us restore an economy that works for everybody, and get back to our founding vision of opportunity for all.

So I know you guys will work with me.  But go out there and organize some more.  Thank you, everybody.  (Applause.)  Let’s give Americans a raise right now.  I’m going to sign this.  (Applause.)

END  
2:30 P.M. EST