At home, liberal frustration with the President was brewing. While liberals applauded President Jackson's agenda, they were opposed to his foreign policy. Many complained, with quite a bit of truth to it, that his foreign policy could have come from a Reagan administration. Jackson refused to compromise on foreign policy, even as he came under pressure from the liberal wing of his party. Several liberals reported they were surprised by the hawkishness of the President's foreign policy, having expected him to tone it down once he won the nomination and the presidency. Protests arose due to Jackson's military buildup, and as detente ended, tensions rose with the Soviet Union. Fears of nuclear war increased, and pressure mounted for Jackson to pull back his buildup. In December 1977 thousands protested in major cities against Jackson's military buildup. Senator George McGovern declared "If the President continues on his current course, we risk nuclear war, he is being irresponsible." Jackson fired back, saying "There is very little chance of nuclear war in the foreseeable future. America needs to stand strong, and not be weak. Appeasement is proven to be a failed policy."
Rumors of a 1980 primary challenge to the President arose. McGovern, Jerry Brown, and Ted Kennedy were all speculated as possible candidates. A Ted Kennedy challenge would be most formidable, though after he had declined yo run in 1972 and 1976, many thought the Chappaquiddick scandal had killed his presidential hopes for good. Still, Kennedy retained widespread support among the base. As frustration arose with Jackson's inability to tackle inflation and his foreign policy, a Gallup poll showed 42% Kennedy, 42% Jackson for the 1980 Democratic primary. Jackson's support was declining, and his approval ratings hovered around 50%. Jackson had not exhausted his capital yet, but liberals and the country were beginning to lose patience with him.
On December 6 1977, 165,000 members of the UMW(United Mine Workers) walked off the job after failing to reach a new contract agreement with the Bituminous Coal Operators Association(BCOA) and the coal operators. The issue was the ability of the miners to engage in 'wildcat strikes' to protest contract or safety standard violations. Initially the strike was expected to be short, and the White House and most commentators took little notice. However the strike became drawn out over several months, through the winter and into 1978. Coal production fell from over 15 million tons a week to less than 6 million by the middle of February. Lawmakers on Capitol Hill entered a "panic", according to Richard Perle. The White House needed to act. Jackson sided with labor, and on February 17 the President had the military seize the mines. He demanded the BCOA settle with the UMW, using the presidential bully pulpit to prod the mine owners to a solution. Business leaders were furious, denouncing the President as anti-business. The mine operators held out for a week, but then the agreed to give more concessions to the miners. On February 25 a new contract was agreed upon. The miners got to keep their benefits and got most of their demands, including the wildcat strikes, but cuts were made to some benefits too. Still, it was a victory for labor and for President Jackson. An NBC-Associated Press showed half the people surveyed approved of his performance during the strike. Labor had renewed loyalty to Scoop Jackson after he stood with them, while the business community increasingly viewed Jackson as anti-business and too liberal.
On January 19, 1978, President Henry M Jackson gave the State of the Union address to Congress and the nation. There was speculation he would unveil an important part of his agenda, but he surpassed those expectations significantly. "Today, this nation faces a crisis. Our healthcare system is not living up to its promises. It costs us more and more, while covering less and less. This has been apparent to Americans on both sides of the aisle, from Senator Edward Kennedy to former President Nixon. It has been apparent to me too. When I ran, I promised to reform our healthcare system. I am not one to break my promises. Now, some people will call on me to wait, to hold off. But the need is pressing now, and the American people deserve better than a President who delays and equivocates. So I will be presenting a bill to Congress to grant universal healthcare to all Americans. We are going to grant the privileges of Medicare to all Americans, we will rein in the excesses of the insurance companies, rein in the costs. As President, every American will get affordable healthcare coverage. Congress, the time has come to act. A hole in our safety net, a hole that has been apparent for decades, will now be filled. We will grant Medicare-for all to all Americans, and fix our failing healthcare system. Hubert Humphrey, a great man and an example for me, said recently 'It was once said that the moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadows of life, the sick, the needy and the handicapped.' I will not let you down. This administration will enhance, not destroy, our safety net. And so we will reform our healthcare system, and grant universal healthcare. Thank you, thank you..."