America will not remain true to its highest ideals -- and America＇s place as a global economic leader will be put at risk -- unless we not only bring down the crushing cost of health care and transform the way we use energy, but also if we do -- if we don＇t do a far better job than we＇ve been doing of educating our sons and daughters; unless we give them the knowledge and skills they need in this new and changing world.

For we know that economic progress and educational achievement have always gone hand in hand in America. The land-grant colleges and public high schools transformed the economy of an industrializing nation. The GI Bill generated a middle class that made America＇s economy unrivaled in the 20th century. Investments in math and science under President Eisenhower gave new opportunities to young scientists and engineers all across the country. It made possible somebody like a Sergei Brin to attend graduate school and found an upstart company called Google that would forever change our world.

The source of America＇s prosperity has never been merely how ably we accumulate wealth, but how well we educate our people. This has never been more true than it is today. In a 21st-century world where jobs can be shipped wherever there＇s an Internet connection, where a child born in Dallas is now competing with a child in New Delhi, where your best job qualification is not what you do, but what you know -- education is no longer just a pathway to opportunity and success, it＇s a prerequisite for success.

That＇s why workers without a four-year degree have borne the brunt of recent layoffs, Latinos most of all. That＇s why, of the 30 fastest growing occupations in America, half require a Bachelor＇s degree or more. By 2016, four out of every 10 new jobs will require at least some advanced education or training.

So let there be no doubt: The future belongs to the nation that best educates its citizens -- and my fellow Americans, we have everything we need to be that nation. We have the best universities, the most renowned scholars. We have innovative principals and passionate teachers and gifted students, and we have parents whose only priority is their child＇s education. We have a legacy of excellence, and an unwavering belief that our children should climb higher than we did.

And yet, despite resources that are unmatched anywhere in the world, we＇ve let our grades slip, our schools crumble, our teacher quality fall short, and other nations outpace us. Let me give you a few statistics. In 8th grade math, we＇ve fallen to 9th place. Singapore＇s middle-schoolers outperform ours three to one. Just a third of our 13- and 14-year-olds can read as well as they should. And year after year, a stubborn gap persists between how well white students are doing compared to their African American and Latino classmates. The relative decline of American education is untenable for our economy, it＇s unsustainable for our democracy, it＇s unacceptable for our children -- and we can＇t afford to let it continue.

What＇s at stake is nothing less than the American Dream. It＇s what drew my father and so many of your fathers and mothers to our shores in pursuit of an education. It＇s what led Linda Brown and Gonzalo and Felicitas Mendez to bear the standard of all who were attending separate and unequal schools. It＇s what has led generations of Americans to take on that extra job, to sacrifice the small pleasures, to scrimp and save wherever they can, in hopes of putting away enough, just enough, to give their child the education that they never had. It＇s that most American of ideas, that with the right education, a child of any race, any faith, any station, can overcome whatever barriers stand in their way and fulfill their God-given potential. (Applause.)

Of course, we＇ve heard all this year after year after year after year -- and far too little has changed. Certainly it hasn＇t changed in too many overcrowded Latino schools; it hasn＇t changed in too many inner-city schools that are seeing dropout rates of over 50 percent. It＇s not changing not because we＇re lacking sound ideas or sensible plans -- in pockets of excellence across this country, we＇re seeing what children from all walks of life can and will achieve when we set high standards, have high expectations, when we do a good job of preparing them. Instead, it＇s because politics and ideology have too often trumped our progress that we＇re in the situation that we＇re in.

For decades, Washington has been trapped in the same stale debates that have paralyzed progress and perpetuated our educational decline. Too many supporters of my party have resisted the idea of rewarding excellence in teaching with extra pay, even though we know it can make a difference in the classroom. Too many in the Republican Party have opposed new investments in early education, despite compelling evidence of its importance. So what we get here in Washington is the same old debate about it＇s more money versus more reform, vouchers versus the status quo. There＇s been partisanship and petty bickering, but little recognition that we need to move beyond the worn fights of the 20th century if we＇re going to succeed in the 21st century. (Applause.)

I think you＇d all agree that the time for finger-pointing is over. The time for holding us -- holding ourselves accountable is here. What＇s required is not simply new investments, but new reforms. It＇s time to expect more from our students. It＇s time to start rewarding good teachers, stop making excuses for bad ones. It＇s time to demand results from government at every level. It＇s time to prepare every child, everywhere in America, to out-compete any worker, anywhere in the world. (Applause.) It＇s time to give all Americans a complete and competitive education from the cradle up through a career. We＇ve accepted failure for far too long. Enough is enough. America＇s entire education system must once more be the envy of the world -- and that＇s exactly what we intend to do.

That＇s exactly what the budget I＇m submitting to Congress has begun to achieve. Now, at a time when we＇ve inherited a trillion-dollar deficit, we will start by doing a little housekeeping, going through our books, cutting wasteful education programs. My outstanding Secretary of Education, Arne Duncan, who＇s here today -- stand up, Arne, so everybody can see you. (Applause.) I＇m assuming you also saw my Secretary of Labor, Hilda Solis. (Applause.) But Secretary Duncan will use only one test when deciding what ideas to support with your precious tax dollars: It＇s not whether an idea is liberal or conservative, but whether it works. And this will help free up resources for the first pillar of reforming our schools -- investing in early childhood initiatives.

This isn＇t just about keeping an eye on our children, it＇s about educating them. Studies show that children in early childhood education programs are more likely to score higher in reading and math, more likely to graduate from high school and attend college, more likely to hold a job, and more likely to earn more in that job. For every dollar we invest in these programs, we get nearly $10 back in reduced welfare rolls, fewer health care costs, and less crime. That＇s why the American Recovery and Reinvestment Act that I signed into law invests $5 billion in growing Early Head Start and Head Start, expanding access to quality child care for 150,000 more children from working families, and doing more for children with special needs. And that＇s why we are going to offer 55,000 first-time parents regular visits from trained nurses to help make sure their children are healthy and prepare them for school and for life. (Applause.)

Even as we invest in early childhood education, let＇s raise the bar for early learning programs that are falling short. Now, today, some children are enrolled in excellent programs. Some children are enrolled in mediocre programs. And some are wasting away their most formative years in bad programs. That includes the one-fourth of all children who are Hispanic, and who will drive America＇s workforce of tomorrow, but who are less likely to have been enrolled in an early childhood education program than anyone else.

That＇s why I＇m issuing a challenge to our states: Develop a cutting-edge plan to raise the quality of your early learning programs; show us how you＇ll work to ensure that children are better prepared for success by the time they enter kindergarten. If you do, we will support you with an Early Learning Challenge Grant that I call on Congress to enact. That＇s how we will reward quality and incentivize excellence, and make a down payment on the success of the next generation.