Trump calls for 'merit-based' immigration system like Australia's

President Donald Trump has called for a US immigration system rewrite that works on a "merit-based" system similar to Australia's.

After an extremely rocky start to his presidency, Mr Trump addressed Congress and reaffirmed his campaign commitments which included building a wall on the southern border, cracking down on illegal immigrants and an overhaul of the countries healthcare system.

Softening the edge in his hard-line immigration stance, the president called for "merit-based" immigration system similar to Australia and Canada so the best people came to America.

"Nations around the world, like Canada, Australia and many others - have a merit-based immigration system," he told members of Congress in the televised addressed.

"It is a basic principle that those seeking to enter a country ought to be able to support themselves financially.

"According to the National Academy of Sciences, our current immigration system costs America's taxpayers many billions of dollars a year," Mr Trump said, adding a "merit-based system, will have many benefits: it will save countless dollars, raise workers' wages, and help struggling families - including immigrant families - enter the middle class."

The president tied his remark on immigration reforms to the need to stop terrorists and extremists entering the country.

"We cannot allow a beachhead of terrorism to form inside America - we cannot allow our nation to become a sanctuary for extremists," Mr Trump said.

The president pledged to work with US allies, including those in the Muslim world, to defeat Islamic State militants.

Honouring the widow of a fallen hero

President Trump told the gathering how they were "blessed" to be joined by Carryn Owens, the widow of Navy SEAL senior chief William "Ryan" Owens who died in a raid in Yemen last month.

"Ryan died as he lived: a warrior, and a hero, battling against terrorism and securing our nation," the president declared as the audience leapt to their feet to honour the fallen soldier.

Senior chief Owens was killed in President Trump's first military engagement as Commander in Chief.

President Trump quoted his secretary of defence, General James Mattis, who told him Owens was part of a "highly successful raid that gathered large amounts of vital intelligence that will lead to many more victories in the future against our enemy".

"Ryan's legacy is etched in eternity, thank you," he said to the widow Ownes in the audience.

Trump commits to 'massive' tax relief

Mr Trump also announced a "massive" tax relief for the middle class along with corporate tax reform in the address to the Congress.

"My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone," Mr Trump will say, according to the draft released by the White House.

"At the same time, we will provide massive tax relief for the middle class."

Mr Trump used the address to outline what he would like to accomplish during his first year in office by declaring, "The time for small thinking is over. The time for trivial fights is behind us."

He called on the Republican-led Congress to repeal and replace former Democratic President Barack Obama's signature healthcare law known as Obamacare with reforms that expand choice, increase access and lower costs, according to the speech excerpts.

In a reflection of his "America first" philosophy, Mr Trump said that "to accomplish our goals at home and abroad, we must restart the engine of the American economy" by making it easier for companies to do business in the United States, and impose protectionist policies to make it harder for them to leave.

After an initial month in office in which he frequently struggled to control the narrative, Trump looked for a reset to move past a chaotic period that dominated the headlines, including a temporary travel ban he signed for people from seven Muslim-majority nations that aroused protests and airport disruptions. The ban was blocked by the federal courts.

There was a possibility Trump could use the address to signal a shift in his thinking on what to do about millions of illegal immigrants, one of the most contentious US political issues.

He told television network anchors at a midday lunch that he was open to the type of broad overhaul of the nation's immigration policy that his two predecessors in the White House were unable to achieve.

"The time is right for an immigration bill as long as there is compromise on both sides," a senior administration official quoted Trump as telling the TV anchors.

The Republican president has used his early weeks in office to repeat vows to build a wall along the US-Mexico border and intensify deportations of illegal immigrants who have committed crimes.

At the same time, he has expressed sympathy for children who entered the country when their parents crossed the border without proper authority, the "dreamers" who so far are protected by an ordered signed by President Barack Obama.