Obama to limit discretionary spending

Barack Obama, US President, said,"Starting in 2011, we are prepared to freeze government spending for three years. Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will. Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. And if I have to enforce this discipline by veto, I will."

Obama also called on both parties to overcome differences, and unite in making decisions that will better the country.

On conflict, Obama said the US will continue to fight al-Qaeda in Afghanistan. But said the United States will leave Iraq in the hands of the Iraqi people, and support its government. He promised to have all combat troops out of Iraq by the end of August.

It's regulation for the US President to provide Congress with information about the state of the Union. The tradition dates back 220-years.