Warbucks organises to make a public announcement on a radio show to help find Annie's parents. The show's host, Burt Healy, and his assistants, Freda McCracken and her puppet Wacky, share Annie's plight with the nation and offer a $50,000 reward to Annie's parents.

Burt Healy and the Boylan Sisters, Ronnie, Bonnie and Connie, sing "Never Fully Dressed" as their closing number, while the orphans listen to the show secretly on Miss Hannigan's radio.

The orphans are inspired by "Never Fully Dressed" and dance happily, until Miss Hannigan bursts in asking cruelly, "do I hear happiness in here?"

While Grace remains at Warbucks' mansion to screen the couples claiming to be Annie's parents, Warbucks and Annie take a trip to the White House to meet President Roosevelt. Annie shares her uplifting philosophy about "Tomorrow". The President is so taken with Annie and her ideas that he is inspired to create the "New Deal".

Upon returning home, Grace shares the bad news that all of the couples were fakes and only after the $50,000. After dealing with her disappointment, Annie realises that she loves Mr Warbucks and wants to be adopted by him. They promise each other that they will be "Together Forever."

During the festivities, Rooster and Lily, disguised as Mr and Mrs Mudge, convince Warbucks that they are Annie's parents. As Annie packs her bags and prepares to leave with the Mudges, she thinks about what her life would have been like as Warbucks' daughter.

President Roosevelt arrives just in time to save the day with the sad news that Annie's parents died many years ago. Rooster and Lily are arrested, along with Miss Hannigan. The orphans are all brought to Warbucks' mansion to share Christmas with Annie.

Annie gives Molly her first ever Christmas present and the orphans, Annie, Grace, Warbucks, President Roosevelt and the servants all celebrate that they will be getting "A New Deal For Christmas".

Sandy and Annie are reunited and they all live Happily Ever After.