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The annual State of the Union speech isn't just stagecraft: the message is mandated by the U.S. Constitution (trivia alert: Article II, Section 3). It's intended to give Congress a status update on the country and make recommendations where needed, but the tradition has evolved over time.
"The era of big government is over."
Significance: As much as anything else, the State of the Union speeches are political tools. In a re-election year, with a failed health care proposal and the disastrous 1994 election behind him, Clinton's rhetoric crept towards the middle in an attempt to signal he was a different kind of Democrat. Video / Transcript