2.10pm AEDT:
Mr Trump said he was willing to forge new alliances to assure global harmony.
"America is willing to find new friends and to forge new partnerships where shared interests align," he said.
"We want harmony and stability, not war and conflict. We want peace wherever peace can be found.
"America is friends today with former enemies. Some of our closest allies decades ago fought on the opposite side of these terrible, terrible wars.
"This history should give us all faith in the possibilities for a better world."
He said his presidency would begin "a new chapter of American greatness".
"The time for small thinking is over. The time for trivial fights is behind us," he said.
"We just need the courage to share the dreams that fill our hearts, the bravery to express the hopes that serve our souls and the confidence to turn those hopes and dreams into action.
"From now on, America will be empowered by our aspirations, not burdened by our fears.
"I am asking all citizens to embrace this renewal of the American spirit.
"I am asking all members of Congress to join me in dreaming big and bold, and daring things for our country.
"I am asking everyone watching tonight to seize this moment, believe in yourselves, believe in your future, and believe, once more, in America."
2.05pm AEDT:
Mr Trump sought to reassure US allies.
“To those allies who wonder what kind of a friend America will be, look no further than the heroes who wear our uniform,” he said.
“Our foreign policy calls for a direct, robust and meaningful engagement with the world.
“It is American leadership based on vital security interests that we share with our allies all across the globe.
“We strongly support NATO - an alliance forged through the bonds of two world wars - that dethrone fascism, and a Cold War that defeated communism.”
But he reiterated his call for America’s allies to contribute more to multi-lateral organisations.
“We expect our partners, whether in NATO, the Middle East or in the Pacific, to take a direct and meaningful role in both strategic and military operations, and pay their fair share of the cost,” he said.
"We will respect historic institutions but we will respect the foreign rights of all nations, and they have to respect our rights as a nation also.
"My job is not to represent the world. My job is to represent the United States of America.
"But we know that America's better off when there is less conflict, not more. We must learn from the mistakes of the past.
"The only long-term solution for these humanitarian disasters, in many cases, is to create the conditions where displaced persons can safely return home and begin the long, long process of rebuilding."
1.58pm AEDT:
Mr Trump said he would call on Congress to better provide for the US military.
"I am sending Congress a budget that repeals the military, eliminates the defence sequester and calls for one of the largest increases in National Defence spending in American history," he said.
"My budget will also increase funding for our veterans. Our veterans have delivered for this nation, and now we must deliver for them.
"The challenges we face as a nation are great, but our people are even greater. And none are greater or braver than those who fight for America in uniform."
1.55pm AEDT:
Mr Trump spoke about the need to reduce gun crime in places like Chicago, and create safer communities.
“Every American child should be able to grow up in a safe community, to attend a great school, and to have access to a high-paying job,” he said.
“But to create this future, we must work with, not against - not against - the men and women of law enforcement.
“We must build bridges of cooperation and trust, not drive the wedge of disunity, and really that's what it is, division.
“Police and sheriffs are members of our community.
“We must support the incredible men and women of law enforcement.
“And we must support the victims of crime. I have ordered the Department of Homeland Security to create an office to serve American victims. The office is called Voice, victims of immigration crime engagement.
“We are providing a voice to those who have been ignored by our media and silenced by special interests.”
1.50pm AEDT:
Mr Trump then referred to, Megan Crowley, a woman with a rare disease known as Pompeii disease.
He spoke about how her father worked to found a company and develop a drug that saved Ms Crowley's life.
He used her story as an example for why changes were needed to speed up approval processes and decrease regulation "across the government".
Watch Trump speak on education:
He then moved on the education, calling it the "civil rights issue of our time".
"I am calling upon members of both parties to pass an education bill that allows school choice for disadvantaged youth, including millions of African American and Latino children," Mr Trump said.
"These families should be free to choose the public, private, chartered, religious or home school that is right for them."
"We want all children to be able to break the cycle of poverty."
1.45pm AEDT:
He went on to include more detail than he has previously revealed about how the new cover would work.
"First, we should ensure that Americans with preexisting conditions have access to coverage, and that we have a stable transition for Americans currently enrolled in the healthcare exchanges," he said.
"Secondly, we should help Americans to purchase their own coverage through the use of tax credits and expanded health savings accounts, but it must be the plan they want, not the plan forced on them by our government.
"Thirdly, we should give our state governors the resources and flexibility they need with Medicaid to make sure no-one is left out.
Watch Trump speak on health care:
"Fourthly, we should implement legal reforms that protect patients and doctors from unnecessary costs that drive up the price of insurance and work to bring down the artificially high price of drugs, and bring them down immediately.
"Finally, the time has come to give Americans the freedom to purchase health insurance across state lines, which will create a truly competitive national marketplace that will bring costs weighed down and provide far better care."
He called on Democrats to work with the Republicans to "finally get the job done, and get it done right".
"On this and so many other things, Democrats and Republicans should get together and unite for the good of our country, and for the good of the American people," he said.
"My administration wants to work with members of both parties to make childcare accessible and affordable, to help ensure new parents that they have paid family leave.
"To invest in women's health and to promote clean air and clean water, and to rebuild our military and our infrastructure."
Watch Trump speak on working with Democrats:
1.41pm AEDT:
Mr Trump also called on Congress to repeal the universal healthcare legislation known as Obamacare.
"Tonight I'm also calling on this Congress to repeal and replace Obamacare with reforms that expand choice, increase access, lower costs, and at the same time provide better healthcare," he said.
"Mandating every American to buy government approved health insurance was never the right solution for our country.
"The way to make health insurance available to everyone is to lower the cost of health-insurance, and that is what we are going to do."
His words triggered howls of approval from the Republicans in Congress, while the Democratic members remained in their seats and refused to applaud.
1.38pm AEDT:
Mr Trump then moved back to infrastructure, spruiking a $1 trillion investment in infrastructure.
"To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion investment in infrastructure of the United States financed through both public and private capital," creating millions of new jobs," he said.
"This effort will be guided by two core principles - buy American and hire American."
1.35pm AEDT:
Mr Trump then turned to the thorny issue of free trade, saying he believed in it, but that it must be "fair trade".
He quoted former president Abraham Lincoln to justify his trade policies.
"I am not going to let America and its great companies and workers be taken advantage of any longer," he said.
"They have taken advantage of our country. No longer.
"I'm going to bring back millions of jobs, protecting our workers also means reforming our system of legal immigration."
He called for a "merit-based immigration system".
Watch Trump speak on immigration:
"It's a basic principle that those seeking to enter a country ought to be able to support themselves financially," he said.
"Yet in America we do not enforce this rule, straining the very public resources that our poorest citizens rely upon.
"Switching away from this current system of lower skilled immigration and instead adopting a merit-based system, we will have so many more benefits.
"It will save countless dollars, raise workers' wages, and help struggling families, including immigrant families, enter the middle class, and they will do it quickly, and they will be very, very happy indeed."
Mr Trump said America needed to "restore respect for our laws".
"If we are guided by the well-being of American citizens, then I believe Republicans and Democrats can work together to achieve an outcome that has eluded our country for decades," he said.
President Donald Trump addresses a joint session of Congress on Capitol Hill in Washington, Tuesday, Feb. 28, 2017. (AAP) Source: AAP
1.32pm AEDT:
Mr Trump then proceeded to talk about the "circumstances we inherited", blaming President Obama for low unemployment and massive debt.
"Ninety-four million Americans are out of the labour force," he said.
"Over 43 million people are now living in poverty. And over 43 million Americans are on food stamps.
"We have the worst financial recovery in 65 years."
He alluded to major tax reform to benefit companies.
"To accomplish our goals, at home and abroad, we must re-start the engine of the American economy, making it easier for companies to do business in the United States and much, much harder for companies to leave our country," he said.
"Right now, American companies are taxed at one of the highest rates anywhere in the world.
"My economic team is developing historic tax-free form that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone."
1.29pm AEDT:
Mr Trump promised to work with America’s allies to tackle IS.
“We will work with our allies, including our friends and allies in the Muslim world, to extinguish this vile enemy from our planet,” he said.
“I have also imposed new sanctions on entities and individuals who support Iran's ballistic missile program and reaffirmed our unbreakable alliance with the state of Israel.”
He also highlighted his appointment of the new Supreme Court justice Neil Gorsuch and he called on the Senate to "swiftly approve his nomination".
1.26pm AEDT:
Mr Trump also said his administration was taking strong measures to protect our nation from "radical Islamic terrorism".
"According to data provided by the Department of Justice, the vast majority of individuals convicted of terrorism and terrorism-related offences since 9/11 came here from outside of our country," he said.
"Those given the high honour of admission to the United States should support this country and love its people, and its values.
"We cannot allow a set of terrorists to form in our country, we cannot allow our nation to become a sanctuary for extremists."
Mr Trump said it his administration was "working on improved vetting procedures and we will shortly take new steps to keep our nation safe, and to keep those out who will do us harm".
1.23pm AEDT:
Mr Trump said he had taken steps to protect US citizens.
"I have directed the Department of Justice to form a taskforce of reducing violent crime. I have further ordered to coordinate an aggressive strategy to dismantle the criminal cartels that have spread all across our [country]," he said.
"We will stop the drugs from pouring into our country and poisoning our youth, and we will expand treatment for those who have become so badly addicted."
He said he had "answered the pleas of American people for immigration enforcement and border security.
"By finally enforcing our immigration laws, we will raise wages, help the unemployed, save billions and billions of dollars, and make our communities safer for everyone," he said.
"We want all Americans to succeed, but that can't happen in an environment of lawless chaos. We must restore integrity and the rule of law at our borders.
"For that reason, we will soon begin the construction of a great, great wall along our southern border.
"As we speak tonight, we are removing gang members, drug dealers and criminals that threaten our communities and prey on our very innocent citizens."
1.16pm AEDT:
While not mentioning any details, Mr Trump said his presidency would see "dying industries come roaring back to life" as well as further health care for veterans.
"Crumbling infrastructure will be replaced with new roads, tunnels and airports gleaming across our very, very beautiful land," he said.
Mr Trump said major companies "Ford, Fiat, Chrysler, Lockheed, Walmart Intel" had all announced they would invest "billions and billions in the United States" and said the "stock market has gained almost $3 trillion in value since the election on November 8".
He said he had also started "draining the swamp" by placing a five-year ban on lobbying and had "massively reduced job-crushing regulations".
He also triumphed his move to allow the Dakota Access pipline - a project his predecessor Barack Obama had blocked on environmental and social grounds.
"We have cleared the way for the construction of the Keystone and Dakota Access Pipelines thereby creating tens of thousands of jobs, and I've issued a new directive that new, American pipelines be made with American steel," he said.
Watch Trump speak on employment:
1.13pm AEDT:
Mr Trump then turned to one of his favourite topics - the need to think America first and what he considers to be the declining state of the US.
"For too long we've watched our middle-class shrink as we've exported our jobs and wealth to foreign countries," he said.
"We've financed and built one global project after another, but ignored the fates of our children in the inner cities of Chicago, Baltimore, Detroit, and so many other places throughout our land.
"We've defended the borders of other nations while leaving our own borders wide open for anyone to cross, and for drugs to pour in at a now unprecedented rate.
"And we've spent trillions and trillions of dollars overseas while our infrastructure at home has so badly crumbled."
He described his election as the start of a "rebellion".
"The quiet voices became a loud chorus as thousands of citizens now spoke out together, from cities small and large all across our country," he said.
"Finally, the chorus became an earthquake and the people turned out by the tens of millions and they were all united by one very simple but crucial demand - that America must put its own citizens first because only then can we truly make America great again."
1.11pm AEDT:
Mr Trump referenced recent threats targeting Jewish community centres to call for the country to “stand united”.
“While we may be a nation divided on policies, we are a country that stands united in condemning hate and evil, in all of its very ugly forms,” he said.
“Each American generation passes the torch of truth, liberty and justice, in an unbroken chain all the way down to the present. That torch is now in our hands, and we will use it to light up the world. I am here tonight to deliver a message of unity and strength, and it is a message deeply delivered from my heart."
He said there was a "new national pride sweeping the nation".
"What we are witnessing today is the renewal of the American spirit," he said.
"Our allies will find that America is, once against, ready to lead. All the nations of the world, friend or foe, will find that America is strong, America is proud and America is free."
1.09pm AEDT:
First Lady Melania Trump also earned a standing ovation before Mr Trump began his speech.
1.07pm AEDT:
US President Donald Trump entered Congress to rousing and extended cheers. He passed through the members shaking hands before the people assembled rose to give him a standing ovation.
During a turbulent first 40 days in office, Trump has put homeland security front and center - proposing immigration bans, border walls and a roughly 10 percent budget boost in national security.
That hawkish message will continue in a primetime address to lawmakers and the nation at 9:00 pm (0200 GMT Wednesday), an opportunity for Trump to frame the big bold choices of his administration.
But aides say the 70-year-old Republican will also focus on a "renewal of the American spirit," as he tries to tilt back toward the bread-and-butter issues that helped him get elected.
"All I can do is speak from the heart and say what I want to do," Trump said in a pre-speech interview with Fox News.
Trump's focus will be "solving real problems for real people," said a senior administration official, previewing an address to be centered on "economic opportunity."
One question ahead of Trump's longest speech to date as president: Will he remain on message, or stray from the choreographed ritual and ad-lib long stretches of his address, as he often did on the campaign trail?
