Key Takeaways from President Biden’s Third State of the Union Address
See all Insights

Key Takeaways from President Biden’s Third State of the Union Address

Brownstein Client Alert, March 8, 2024

President Joe Biden delivered his third State of the Union address on March 7, just days after the Super Tuesday primary elections cemented him and former President Donald Trump as the presumptive nominees for their respective parties. Biden used the speech to highlight his administration’s accomplishments, preview the final months of his current administration, and set the scene for what a second term might entail.

He was on the offensive for much of the speech, occasionally fielding hecklers from the crowd and going off script at times to engage with them. Biden delivered a forceful address and repeatedly made reference to former President Trump, terming him the “predecessor” and sparring more openly with Republicans than in his past addresses.

In the days before the speech, the Biden administration released numerous fact sheets and announcements detailing agency actions and priorities on housing, reproductive rights, tax policy, consumer fees and prescription drug prices. While some of the actions detailed in these materials were presented in the State of the Union, others will be included in the president’s fiscal year 2025 (FY25) budget request or are already in process at agencies. The FY25 budget is scheduled for release during the week of March 11. Many of the policy points covered in the address and the budget will also be featured in Biden’s campaign platform.

First-term Sen. Katie Britt (R-AL) delivered the Republican response to President Biden’s address. Her 17-minute speech focused on immigration and the economy, painting a picture of a country in crisis under Biden’s leadership.

As is typical, the policies outlined in Biden’s speech combine a mix of completed, achievable and idealistic goals. The key takeaways from the speech are detailed below. Please contact a member of the Brownstein policy team for additional information on any specific topic(s).

 

ECONOMY AND INVESTMENTS

  • State of the Economy. Biden described an economy that is the “envy of the world,” touting job gains and low unemployment levels. He went off-script in stating that the economy achieved a soft landing, having experienced a significant decline in inflation compared to other countries.
  • Build America. Biden asserted that while former administrations failed to properly implement Buy America provisions, federal projects during his tenure are required to adhere to more stringent domestic content requirements.
  • Enacted Investments. Biden praised the CHIPS and Science Act’s investments in research and development and highlighted $650 billion in private investment in clean energy and advanced manufacturing. He also touted several provisions in the bipartisan Infrastructure Investment and Jobs Act, notably its support for public transit, lead pipe removal and high-speed internet expansion. From the American Rescue Plan, he praised investments in public safety but said additional support is necessary to provide localities with more community police officers, mental health workers and tools for community violence intervention.

HEALTHCARE

  • Drug Pricing. Biden touted the drug pricing provisions in the Inflation Reduction Act (IRA) and called on Congress to extend the $35 monthly cap on insulin under Medicare to the commercial market. He highlighted the IRA provision allowing Medicare to negotiate lower prices for prescription drugs and, at the same time, pushed for an expansion of the policy to 500 drugs that should be negotiated over the next 10 years. Sticking with the IRA, he said prescription drug costs should be capped at $2,000 per individual, not only those on Medicare. Biden noted that enhanced marketplace subsidies will expire in 2025 and urged Congress to make the benefit permanent.
  • Research and Reproductive Rights. He also announced that First Lady Jill Biden will lead the inaugural White House Initiative on Women’s Health Research and called for continued support for the newly created Advanced Research Projects Agency for Health (ARPA-H). Biden underscored the importance of supporting individual rights, including access to abortion, in vitro fertilization (IVF) and other reproductive treatments. He also called for a codification of Roe v. Wade.

IMMIGRATION

  • Border Security Reforms. Biden characterized the bipartisan border bill, which his administration helped negotiate, as the toughest set of border security reforms ever proposed. He highlighted key provisions in the bill, including the president’s emergency authority to temporarily shut down the border during a surge. He predicted that the enhanced funding to support additional immigration judges, asylum officers, border security agents and high-tech drug detection machines would significantly speed up the timeline for resolving immigrants’ cases.

INTERNATIONAL AFFAIRS

  • Defending Ukraine. Biden said Russia’s invasion of Ukraine had negative spillover impacts on European countries and around the world, adding that Russia would likely invade further countries if it succeeds in Ukraine. He criticized former President Trump’s remarks to Russian President Vladmir Putin on the war in Ukraine and urged Congress to pass a national security spending bill that includes funding for Ukraine.
  • Israel and Gaza. Biden said Israel is within its rights to conduct military operations against Hamas in Gaza as a result of the Oct. 7 terrorist attacks, but that it also has a fundamental responsibility to protect civilians. Biden confirmed that he would direct the U.S. military to establish a temporary pier on the Gaza coast capable of receiving large shipments of humanitarian aid, emphasizing that no U.S. troops would be on the ground. He noted that his administration has been working to establish an immediate ceasefire that would ease the humanitarian crisis and return the Israeli hostages. Biden reiterated his view that a two-state solution is the only viable endgame for the Israel-Palestine conflict.

COMPETITION WITH CHINA

  • Fostering Competition. Biden highlighted his administration’s policy of strategic competition with China, including providing greater attention and resources to U.S. relationships with countries in the Indo-Pacific region, implementing export controls on U.S. advanced technology exports to China and implementing economic policies that result in a drastic reduction in the United States’ trade deficit with China. He said his administration would continue to adhere to a set of policies geared toward promoting U.S. competition with China while preventing conflict between the two countries.

CONSUMERS AND WORKFORCE

  • “Junk Fees.” Biden highlighted the recently finalized credit card late fee rule, lowering late fees from $32 to $8. The president also touted a Federal Trade Commission (FTC) rulemaking requiring cable companies, travel utilities and online ticket sellers to provide the total price upfront to consumers. He called for the passage of Sen. Bob Casey’s (D-PA) Shrinkflation Prevention Act ( 3819), which would authorize the FTC and state attorneys general to pursue civil actions against companies that downsize products but sell them at the same or similar prices.
  • Individuals’ Rights. Biden reiterated his support for the Protecting Right to Organize (PRO) Act ( 567/H.R. 20), the Equality Act (S. 5/H.R. 15), the Freedom to Vote Act (S. 2344/H.R. 11) and the John Lewis Voting Rights Act (H.R. 14). He also pushed for a ban on assault weapons and high-capacity magazines, in addition to the adoption of universal background checks.
  • AI and Data Privacy. Biden reiterated calls to enact bipartisan privacy legislation focused on protecting children online. He also said the use of artificial intelligence (AI) voice impersonation should be banned.

HOUSING

  • Mortgages. Biden sought to reassure prospective homebuyers, stating that if inflation keeps coming down, mortgage rates will also fall. He is working to implement a temporary $400 per month tax credit for first-time homeowners to address rising mortgage costs. In addition, he said relevant agencies are in the process of eliminating title insurance fees for federally-backed mortgages.
  • Renters and Affordable Housing. Addressing renters, he stated that his administration is “cracking down” on landlords who he alleged are in violation of antitrust laws by “price-fixing and driving up rents.” He touted efforts to provide more federal financing for housing and urged Congress to pass his housing plan, which seeks to build and renovate two million affordable homes.

EDUCATION

  • Preschool. Biden noted that his administration would continue to support federally subsidized preschool for three- and four-year-olds, citing studies that found that children who attend preschool are nearly 50% more likely to finish high school.
  • Teacher Wages and Student Loans. He called for increasing wages for public school teachers and the availability of Pell Grants for working- and middle-class individuals. Biden also touted his efforts to reduce and eliminate student loan debt. Biden said he will provide additional investment for Historically Black College and Universities (HBCU) and Hispanic and Minority-Serving Institutions.

To read more about education policy in the State of the Union, click here.

TAXATION

  • Individuals. Biden criticized the Tax Cuts and Jobs Act of 2017, stating that it expanded the national debt and benefited large corporations and wealthy individuals. He called for a restoration of the child tax credit (CTC) expansion passed during the COVID-19 pandemic, saying it reduced child poverty rates by half. Biden also said he intends to enact a new 25% tax on the total income, including unrealized capital gains, of wealthy individuals, which he stated would raise $500 billion in federal revenue over the next 10 years.
  • Corporations. He said his administration will seek to raise the corporate alternative minimum tax rate to at least 21% and remove tax breaks used by industry leaders in the pharmaceutical and oil industries.

To read more about tax policy in the State of the Union, click here.
 

CLIMATE AND ENERGY

  • Achievements and Goals. Biden cited his efforts to reduce U.S. carbon emissions by 50%, conserve 30% of U.S. waterways and land, and install 500,000 electric vehicle charging stations in the United States by 2030. He highlighted the launch and future expansion of the American Climate Corps, an organization modeled after the Peace Corps that aims to provide paid training and service opportunities in the clean energy and conservation industries.

THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING THE STATE OF THE UNION ADDERESS. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.

Recent Insights