Should Wealthy Former Presidents Have Smaller Allowances? (H.R. 3739)
Do you support or oppose this bill?
What is H.R. 3739?
(Updated September 25, 2019)
This bill would reduce the allowance paid to former U.S. presidents to a maximum of $200,000 per president, indexed to inflation, from about $600,000 each year per president. The Former Presidents Act would be amended to allow each former president to receive a lifetime annual annuity of $200,000 — plus an annual monetary allowance of $200,000 — each adjusted annually for inflation.
The annual allowance would decrease by the amount that a President’s adjusted gross income in a tax year exceeds $400,000. Any former President who holds an appointive or elective position in the federal government that pays more than a nominal amount would be denied the lifetime and annual allowance.
Nothing in this bill would impact the security and protection of a former President or their family members, or the funding to provide that security and protection.
This bill would apply to any former president or the widow of a former president as of the date of enactment.
Argument in favor
Former Presidents earn enough money from giving speeches and writing books, and don't rely on their allowance from the federal government. This bill maintains the payments as a safety net — but saves the money when it isn’t needed.
Argument opposed
Former presidents should be richly compensated for their service to the country once they leave office. It may not be their old salary, but these payments represent the nation’s gratitude for the president’s contributions while in office.
Impact
Former presidents; their surviving spouses; their families; and taxpayers.
Cost of H.R. 3739
A CBO cost estimate is unavailable.
Additional Info
In-Depth: Sponsoring Rep. Jody Hice (R-GA) introduced this bill to limit the pensions of former presidents and reduces the allowances provided to them for post-presidential expenditures:
"By identifying outdated measures and prioritizing principles of accountability, the Presidential Allowance Modernization Act creates a market-based plan to save taxpayer dollars. The lifestyle of the modern post-presidency has dramatically changed in recent years, affording former presidents many lucrative opportunities, including high-dollar speaking engagements, book deals, and board memberships, just to name a few. With Americans looking down the barrel of a $20 trillion debt, we must find ways to reduce wasteful spending, and our former presidents will lead by example in cutting costs under this bill."
This legislation passed the House Oversight & Government Reform Committee on a voice vote, and currently has the support of three Republican cosponsors in the House. During the last Congress, this bill's predecessor passed both chambers of Congress unanimously, but wasn't signed into law by then-President Barack Obama before the session of Congress ended.
Of Note: The Former Presidents Act, which this bill amends, was passed in 1958 because prior to that the federal government offered no pension or retirement benefits to former U.S. Presidents. Dwight D. Eisenhower was the first President to leave office and receive a pension, while both Herbert Hoover and Harry Truman began receiving benefits upon the bill’s enactment.
In 2015 around $2.4 million was set aside for former president allowances — ~$600,000 per president. These taxpayer funded allowances are used to cover costs for offices, staff, supplies, and other services intended to help former presidents perform duties related to their unofficial public status.
Media:
- Sponsoring Rep. Jody Hice (R-GA) Press Release
- CBO Cost Estimate (Previous Version)
- The Hill
- Fox News (Previous Version)
(Photo Credit: "Photograph of the Four Presidents (Reagan, Carter, Ford, Nixon) toasting in the Blue Room prior to leaving for Egypt... - NARA - 198522" by Unknown or not provided - U.S. National Archives and Records Administration. Licensed under Public Domain via Commons)
The Latest
-
SCOTUS Hears Arguments of Abortion Pill Mifepristone CaseUpdated March 27, 2024, 12:30 p.m. EST On Tuesday, March 26, the Supreme Court heard arguments about the mifepristone case, read more... Women's Health
-
IT: ⛑️ It's American Red Cross Giving Day, and... How will you give back today?Welcome to Wednesday, March 27th, philanthropists and entrepreneurs... It's American Red Cross Giving Day - a time to ensure the read more...
-
Moscow Concert Hall, Russia’s Deadliest Attack in DecadesOn Friday, March 22, at least four men fired automatic weapons into a sold-out show at the Crocus City Hall auditorium in read more... Public Safety
-
Discover Gravvy — A New Way to Support What Matters MostDiscover Gravvy — A New Way to Support What Matters Most Are you ready to optimize your giving? read more...