In discussing these great goals, I shall deal tonight only with matters on the domestic side of the Nation's agenda. I shall make a separate report to the Congress and the Nation next month on developments in foreign policy.

The first of these great goals is already before the Congress.

I urge that the unfinished business of the 91st Congress be made the first priority business of the 92d Congress.

Over the next 2 weeks, I will call upon Congress to take action on more than 35 pieces of proposed legislation on which action was not completed last year.

The most important is welfare reform.

The present welfare system has become a monstrous, consuming outrage--an outrage against the community, against the taxpayer, and particularly against the children it is supposed to help.

We may honestly disagree, as we do, on what to do about it. But we can all agree that we must meet the challenge, not by pouring more money into a bad program, but by abolishing the present welfare system and adopting a new one.

So let us place a floor under the income of every family with children in America--and without those demeaning, soul-stifling affronts to human dignity that so blight the lives of welfare children today. But let us also establish an effective work incentive and an effective work requirement.

Let us provide the means by which more can help themselves. This shall be our goal.

Let us generously help those who are not able to help themselves. But let us stop helping those who are able to help themselves but refuse to do so.

The second great goal is to achieve what Americans have not enjoyed since 1957--full prosperity in peacetime.

The tide of inflation has turned. The rise in the cost of living, which had been gathering dangerous momentum in the late sixties, was reduced last year. Inflation will be further reduced this year.

But as we have moved from runaway inflation toward reasonable price stability and at the same time as we have been moving from a wartime economy to a peacetime economy, we have paid a price in increased unemployment.

We should take no comfort from the fact that the level of unemployment in this transition from a wartime to a peacetime economy is lower than in any peacetime year of the sixties.

This is not good enough for the man who is unemployed in the seventies. We must do better for workers in peacetime and we will do better.

To achieve this, I will submit an expansionary budget this year--one that will help stimulate the economy and thereby open up new job opportunities for millions of Americans.

It will be a full employment budget, a budget designed to be in balance if the economy were operating at its peak potential. By spending as if we were at full employment, we will help to bring about full employment.

I ask the Congress to accept these expansionary policies--to accept the concept of a full employment budget. At the same time, I ask the Congress to cooperate in resisting expenditures that go beyond the limits of the full employment budget. For as we wage a campaign to bring about a widely shared prosperity, we must not reignite the fires of inflation and so undermine that prosperity.

With the stimulus and the discipline of a full employment budget, with the commitment of the independent Federal Reserve System to provide fully for the monetary needs of a growing economy, and with a much greater effort on the part of labor and management to make their wage and price decisions in the light of the national interest and their own self-interest--then for the worker, the farmer, the consumer, for Americans everywhere we shall gain the goal of a new prosperity: more jobs, more income, more profits, without inflation and without war.

This is a great goal, and one that we can achieve together.

The third great goal is to continue the effort so dramatically begun last year: to restore and enhance our natural environment.

Building on the foundation laid in the 37-point program that I submitted to Congress last year, I will propose a strong new set of initiatives to clean up our air and water, to combat noise, and to preserve and restore our surroundings.

I will propose programs to make better use of our land, to encourage a balanced national growth--growth that will revitalize our rural heartland and enhance the quality of life in America.

And not only to meet today's needs but to antic.i.p.ate those of tomorrow, I will put forward the most extensive program ever proposed by a President of the United States to expand the Nation's parks, recreation areas, open s.p.a.ces, in a way that truly brings parks to the people where the people are. For only if we leave a legacy of parks will the next generation have parks to enjoy.

As a fourth great goal, I will offer a far-reaching set of proposals for improving America's health care and making it available more fairly to more people.

I will propose:

--A program to insure that no American family will be prevented from obtaining basic medical care by inability to pay.

--I will propose a major increase in and redirection of aid to medical schools, to greatly increase the number of doctors and other health personnel.

--Incentives to improve the delivery of health services, to get more medical care resources into those areas that have not been adequately served, to make greater use of medical a.s.sistants, and to slow the alarming rise in the costs of medical care.

--New programs to encourage better preventive medicine, by attacking the causes of disease and injury, and by providing incentives to doctors to keep people well rather than just to treat them when they are sick.

I will also ask for an appropriation of an extra $100 million to launch an intensive campaign to find a cure for cancer, and I will ask later for whatever additional funds can effectively be used. The time has come in America when the same kind of concentrated effort that split the atom and took man to the moon should be turned toward conquering this dread disease.

Let us make a total national commitment to achieve this goal.

America has long been the wealthiest nation in the world. Now it is time we became the healthiest nation in the world.

The fifth great goal is to strengthen and to renew our State and local governments.

As we approach our 200th anniversary in 1976, we remember that this Nation launched itself as a loose confederation of separate States, without a workable central government. At that time, the mark of its leaders' vision was that they quickly saw the need to balance the separate powers of the States with a government of central powers.

And so they gave us a const.i.tution of balanced powers, of unity with diversity--and so clear was their vision that it survives today as the oldest written const.i.tution still in force in the world.

For almost two centuries since--and dramatically in the 1930's--at those great turning points when the question has been between the States and the Federal Government, that question has been resolved in favor of a stronger central Federal Government.

During this time the Nation grew and the Nation prospered. But one thing history tells us is that no great movement goes in the same direction forever. Nations change, they adapt, or they slowly die.

The time has now come in America to reverse the flow of power and resources from the States and communities to Washington, and start power and resources flowing back from Washington to the States and communities and, more important, to the people all across America.

The time has come for a new partnership between the Federal Government and the States and localities--a partnership in which we entrust the States and localities with a larger share of the Nation's responsibilities, and in which we share our Federal revenues with them so that they can meet those responsibilities.

To achieve this goal, I propose to the Congress tonight that we enact a plan of revenue sharing historic in scope and bold in concept.

All across America today, States and cities are confronted with a financial crisis. Some have already been cutting back on essential services---for example, just recently San Diego and Cleveland cut back on trash collections. Most are caught between the prospects of bankruptcy on the one hand and adding to an already crushing tax burden on the other.

As one indication of the rising costs of local government, I discovered the other day that my home town of Whittier, California--which has a population of 67,000--has a larger budget for 1971 than the entire Federal budget was in 1791.

Now the time has come to take a new direction, and once again to introduce a new and more creative balance to our approach to government.

So let us put the money where the needs are. And let us put the power to spend it where the people are.

I propose that the Congress make a $16 billion investment in renewing State and local government. Five billion dollars of this will be in new and unrestricted funds to be used as the States and localities see fit. The other $11 billion will be provided by allocating $1 billion of new funds and converting one-third of the money going to the present narrow-purpose aid programs into Federal revenue sharing funds for six broad purposes--for urban development, rural development, education, transportation, job training, and law enforcement--but with the States and localities making their own decisions on how it should be spent within each category.

For the next fiscal year, this would increase total Federal aid to the States and localities more than 25 percent over the present level.

The revenue sharing proposals I send to the Congress will include the safeguards against discrimination that accompany all other Federal funds allocated to the States. Neither the President nor the Congress nor the conscience of this Nation can permit money which comes from all the people to be used in a way which discriminates against some of the people.

The Federal Government will still have a large and vital role to play in achieving our national progress. Established functions that are clearly and essentially Federal in nature will still be performed by the Federal Government. New functions that need to be sponsored or performed by the Federal Government--such as those I have urged tonight in welfare and health--will be added to the Federal agenda. Whenever it makes the best sense for us to act as a whole nation, the Federal Government should and will lead the way. But where States or local governments can better do what needs to be done, let us see that they have the resources to do it there.

Under this plan, the Federal Government will provide the States and localities with more money and less interference--and by cutting down the interference the same amount of money will go a lot further.

Let us share our resources.