WASHINGTON — President Bush is making a final-year push for a program that would allow low-income families to use federal aid to send their children to private or parochial schools.

The proposal for a $300 million “Pell Grants for Kids” program was part of a modest platform of domestic initiatives that the president laid out in his last State of the Union address to Congress last night.

In a 52-minute address, Mr. Bush cited progress on a range of fronts during his tenure, including education and the war on terrorism, while he castigated lawmakers for overspending and for rejecting his plans to overhaul entitlement programs and immigration.

As a theme linking his visions for domestic and foreign policy, Mr. Bush focused on the need to empower people. At home, he said, “We must trust people with their own money and empower them to grow our economy.”

Abroad, he said American foreign policy is “based on a clear premise: We trust that people, when given the chance, will choose a future of freedom and peace.”

Mr. Bush acknowledged the difficulty of governing during an election and with an opposition party in charge on Capitol Hill, but he implored Congress to forge ahead.

“In this election year, let us show our fellow Americans that we recognize our responsibilities and are determined to meet them,” he said. “And let us show them that Republicans and Democrats can compete for votes and cooperate for results at the same time.”

The president noted the slowing economy, saying that “at kitchen tables across the country, there is concern about our economic future.”

Mr. Bush urged Congress to pass the stimulus package agreed on by the House of Representatives without giving in to the temptation to “load up the bill,” which he warned “would delay it or derail it.” The Senate finance committee yesterday proposed a stimulus that, unlike the House’s plan, would also send checks to those living on Social Security and to those with incomes above $170,000, who would be excluded under the House plan.

Mr. Bush pushed for Congress to make his tax cuts permanent, and he warned Democrats against trying to raise taxes, saying he would veto any bill that included an increase. The most far-reaching of the president’s proposals was a bid to crack down on congressional earmarks, the funding for local projects large and small that lawmakers often insert quietly into spending bills with little or no debate. While prized by lawmakers as a way to boost their standing at home, earmarks account for millions in taxpayer dollars every year and are often derided as wasteful, pork-barrel spending by advocacy groups and fiscal conservatives. “The people’s trust in earmarks is undermined by congressional earmarks,” Mr. Bush said.

He vowed to veto any appropriations bill that did not cut the number and cost of earmarks in half, and he said he would sign an executive order today directing federal agencies to ignore any future earmarks that were not specifically voted on by Congress.

Mr. Bush’s bid to expand the Pell Grant program to students attending primary and secondary schools signals an attempt to offer more school choice under an initiative that has drawn bipartisan support at the college level. Democrats, however, are likely to view it as an effort to expand school “vouchers,” which they argue drain money out of public schools.

“We have seen how Pell Grants help low-income college students realize their full potential,” the president said. “Together, we have expanded the size and reach of these grants. Now let’s apply that same spirit to help liberate poor children trapped in failing public schools.”

The president was forceful in discussing immigration, where his efforts at a comprehensive overhaul died last year in Congress. He betrayed a lingering bitterness in what is likely to be an unsuccessful plea for lawmakers to take up the issue again during his presidency. “Illegal immigration is complicated, but it can be resolved,” he said, his voice rising. “And it must be resolved in a way that upholds both our laws and our highest ideals.”

In foreign policy, Mr. Bush pledged to spend his final year in office working to solidify gains in Iraq and the broader war on terrorism while keeping the pressure on the regime in Iran.

“Above all, know this,” he said to the leader in Tehran. “America will confront those who threaten our troops. We will stand by our allies. And we will defend our vital interests in the Persian Gulf.”

The president spoke extensively on Iraq, claiming strong progress on the surge he initiated over Democratic opposition last year.
“American and Iraqi surges have achieved results few of us could have imagined just one year ago,” he said. “Some may deny the surge is working, but among the terrorists there is no doubt. Al Qaeda is on the run in Iraq, and this enemy will be defeated.”

He stopped well short of declaring victory, however, and he and did not offer a specific vision for what Iraq would look like when he left office. “Our enemies in Iraq have been hit hard. They are not yet defeated, and we can still still expect tough fighting ahead,” he said. “Our objective is the coming year is to sustain and build on the gains we made in 2007, while transitioning to the next phase of our strategy.” Mr. Bush said American forces would shift from a leading role to what he said would eventually be a “protective overwatch mission.”

Mr. Bush spoke as the campaign to replace him has reached a fever pitch in both parties. The two leading Democrats, senators Clinton and Obama, were in attendance at the Capitol last night. Mr. Obama was seated next to Senator Kennedy, who endorsed his candidacy yesterday. Senator McCain skipped the speech to campaign in Florida, which holds a crucial primary today.

Mrs. Clinton and Mr. Obama each issued statements criticizing Mr. Bush’s priorities after his speech.