[Congressional Record Volume 162, Number 6 (Monday, January 11, 2016)]
[House]
[Pages H241-H242]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PRESIDENTIAL ALLOWANCE MODERNIZATION ACT
Mr. CHAFFETZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1777) to amend the Act of August 25, 1958, commonly known as
the ``Former Presidents Act of 1958'', with respect to the monetary
allowance payable to a former President, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1777
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Presidential Allowance
Modernization Act''.
SEC. 2. AMENDMENTS.
(a) Relating to a Former President.--The first section of
the Act entitled ``An Act to provide retirement, clerical
assistants, and free mailing privileges to former Presidents
of the United States, and for other purposes'', approved
August 25, 1958 (3 U.S.C. 102 note), is amended by striking
the matter before subsection (e) and inserting the following:
``(a) Each former President shall be entitled for the
remainder of his or her life to receive from the United
States--
``(1) an annuity at the rate of $200,000 per year, subject
to subsection (c); and
``(2) a monetary allowance at the rate of $200,000 per
year, subject to subsections (c) and (d).
``(b)(1) The annuity and allowance under subsection (a)
shall each--
``(A) commence on the day after the individual becomes a
former President;
``(B) terminate on the last day of the month before the
former President dies; and
``(C) be payable by the Secretary of the Treasury on a
monthly basis.
``(2) The annuity and allowance under subsection (a) shall
not be payable for any period during which the former
President holds an appointive or elective position in or
under the Federal Government to which is attached a rate of
pay other than a nominal rate.
``(c) Effective December 1 of each year, each annuity and
allowance under subsection (a) having a commencement date
that precedes such December 1 shall be increased by the same
percentage as the percentage by which benefit amounts under
title II of the Social Security Act (42 U.S.C. 401 and
following) are increased, effective as of such December 1, as
a result of a determination under section 215(i) of such Act
(42 U.S.C. 415(i)).
``(d)(1) Notwithstanding any other provision of this
section, the monetary allowance payable under subsection
(a)(2) to a former President for any 12-month period may not
exceed the amount by which--
``(A) the monetary allowance which (but for this
subsection) would otherwise be so payable for such 12-month
period, exceeds (if at all)
``(B) the applicable reduction amount for such 12-month
period.
``(2)(A) For purposes of paragraph (1), the `applicable
reduction amount' is, with respect to any former President
and in connection with any 12-month period, the amount by
which--
``(i) the sum of (I) the adjusted gross income (as defined
by section 62 of the Internal Revenue Code of 1986) of the
former President for the last taxable year ending before the
start of such 12-month period, plus (II) any interest
excluded from the gross income of the former President under
section 103 of such Code for such taxable year, exceeds (if
at all)
``(ii) $400,000, subject to subparagraph (C).
``(B) In the case of a joint return, subclauses (I) and
(II) of subparagraph (A)(i) shall be applied by taking into
account both the amounts properly allocable to the former
President and the amounts properly allocable to the spouse of
the former President.
``(C) The dollar amount specified in subparagraph (A)(ii)
shall be adjusted at the same time that, and by the same
percentage as the percentage by which, the monetary allowance
of the former President is increased under subsection (c)
(disregarding this subsection).''.
(b) Relating to the Surviving Spouse of a Former
President.--
(1) Increase in amount of monetary allowance.--Subsection
(e) of the section amended by subsection (a) is amended--
(A) in the first sentence, by striking ``$20,000 per
annum,'' and inserting ``$100,000 per year (subject to
paragraph (4)),''; and
(B) in the second sentence--
(i) in paragraph (2), by striking ``and'' at the end;
(ii) in paragraph (3)--
(I) by striking ``or the government of the District of
Columbia''; and
(II) by striking the period and inserting ``; and''; and
(iii) by adding after paragraph (3) the following:
``(4) shall, after its commencement date, be increased at
the same time that, and by the same percentage as the
percentage by which, annuities of former Presidents are
increased under subsection (c).''.
(2) Coverage of widower of a former president.--Such
subsection (e), as amended by paragraph (1), is further
amended--
(A) by striking ``widow'' each place it appears and
inserting ``widow or widower''; and
(B) by striking ``she'' and inserting ``she or he''.
SEC. 3. RULE OF CONSTRUCTION.
Nothing in this Act shall be considered to affect--
(1) any provision of law relating to the security or
protection of a former President or a member of the family of
a former President; or
(2) funding, under the law amended by this section or under
any other law, to carry out any provision of law described in
paragraph (1).
SEC. 4. EFFECTIVE DATE; TRANSITION RULES.
(a) Effective Date.--This Act shall take effect on the date
of enactment of this Act.
(b) Transition Rules.--
(1) Former presidents.--In the case of any individual who
is a former President on the date of enactment of this Act,
the amendment made by section 2(a) shall be applied as if the
commencement date referred in subsection (b)(1)(A) of the
section amended by this Act coincided with such date of
enactment.
(2) Widows.--In the case of any individual who is the widow
of a former President on the date of enactment of this Act,
the amendments made by section 2(b)(1) shall be applied as if
the commencement date referred to in subsection (e)(1) of the
section amended by this Act coincided with such date of
enactment.
The SPEAKER pro tempore (Mr. Costello of Pennsylvania). Pursuant to
the rule, the gentleman from Utah (Mr. Chaffetz) and the gentlewoman
from the District of Columbia (Ms. Norton) each will control 20
minutes.
The Chair recognizes the gentleman from Utah.
General Leave
Mr. CHAFFETZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Utah?
There was no objection.
Mr. CHAFFETZ. Mr. Speaker, I yield myself such time as I may consume.
I rise today in support of H.R. 1777, the Presidential Allowance
Modernization Act. The act updates an arcane law which no longer
reflects day-to-day reality in order to reduce unnecessary costs to the
taxpayers. H.R. 1777 decreases the pension of former Presidents,
increases the pension of surviving spouses, and limits the allowances
provided for post-Presidential expenditures.
This important piece of legislation amends and modernizes the Former
Presidents Act of 1958 by authorizing a $200,000 annual pension for
each former President and a $100,000 annual survivor benefit for each
surviving spouse.
We thank these Presidents and their spouses for the unbelievable toll
and service that they have given to their country. Currently, former
Presidents receive an annual pension of roughly $203,700, and a
surviving spouse's pension is $20,000.
The Presidential Allowance Modernization Act also sets an annual
allowance of $200,000 for costs such as travel, staff, and office
expenses that are associated with post-Presidential life.
For those former Presidents that earn outside income, which most do,
the $200,000 annual allowance is reduced dollar for dollar for every
dollar a former President earns in outside income in excess of
$400,000.
[[Page H242]]
So, in essence, if former Presidents want to ride off into the sunset
and go fishing and enjoy the Utah sunsets, they can go do that. They
will be very healthily compensated to lead that kind of lifestyle.
If they choose to go out and sell books and give speeches and do all
those things, more power to them. If that is what they choose to do,
they can go out and make that type of money. For some, they make
millions of dollars doing so. At that point, I just don't think that
the taxpayers should necessarily supplement their income. They don't
need it at that point.
So we worked in a very good, bipartisan way with Ranking Member
Elijah Cummings from Maryland. We worked to do this together. We
introduced this in a bipartisan way. I want our Members to know that,
if this bill passes, it would save nearly $10 million in the first 5
years.
In fiscal year 2015, Congress appropriated $3.2 million for pensions,
office staff, and related expenses for former Presidents. Of that
amount, the General Services Administration made $1.1 million in rental
payments for office space.
The annual allowance provision under H.R. 1777 replaces the millions
of dollars currently provided for travel, staff, and office expenses of
former Presidents and ends an unnecessary government handout to former
Presidents that decide to make millions after leaving office.
This bill does not affect the security or protection of former
Presidents or family members of a former President. But, rather, H.R.
1777 brings an end to the American taxpayer subsidizing expenditures
for former Presidents.
Unfortunately, both sides of the aisle recognize that, no matter who
the President is, in this modern age, they are going to have security
concerns the rest of their lives.
Under this bill, all of those expenses for the Secret Service and
those type of expenditures will continue to be paid for, at no expense.
No matter their income, it is a duty and obligation of the Federal
Government to protect these former Presidents, and they will continue
to do so.
The Presidential Allowance Modernization Act modernizes the Former
Presidents Act while reducing unnecessary costs to the taxpayers.
Again, I want to thank Ranking Member Cummings, who was an original
cosponsor of this bill. I also want to thank Representative Grothman
from Wisconsin, who cosponsored and worked on this piece of
legislation. I urge Members to vote in favor of this.
Mr. Speaker, I reserve the balance of my time.
Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 1777, the Presidential
Allowance Modernization Act. I want to thank my good friends, Chairman
Chaffetz and Ranking Member Cummings of the Oversight Committee, for
their work on this important update of Presidential legislation.
This is what this bill would do: It would update what has become an
arcane law and reduce unnecessary costs to the taxpayer. The bill would
amend the Former Presidents Act of 1958 to provide a $200,000 annual
pension for each former President and a $100,000 annual survivor
benefit to each surviving spouse. The pensions are indexed to inflation
and would increase with the Social Security cost-of-living adjustment.
Currently, surviving spouses receive $20,000--an interesting
disparity between the spouse and the former President--and former
Presidents receive a pension equal to the pay for Cabinet Secretaries,
which for 2015 is $203,700.
The bill would also provide an annual allowance of $200,000 for costs
associated with post-Presidential life. The annual allowance would
replace amounts currently provided for travel, staff, and office
expenses, which totaled $3.25 million in fiscal year 2015 for the four
living former Presidents.
The allowance would be reduced dollar for dollar for every dollar a
former President earns in outside income in excess of $400,000.
{time} 1645
So, you see, there might be no Presidential pension if the President
does what most Presidents have done, which is to almost not be able to
help earning outside income.
Updating the allowance ends an unnecessary government handout to
former Presidents making millions of dollars after leaving office.
There is little reason why American taxpayers should be subsidizing
these former Presidents when they are making a comfortable living on
their own work.
This legislation would not affect the funding for the security and
protection of former Presidents and their spouses, and that is an
important provision, considering the world in which we live today.
Last, Mr. Speaker, I want to particularly thank my good friend,
Chairman Chaffetz, for the amendment, my amendment to the bill in
committee to eliminate the prohibition on preventing a former President
or surviving spouse from receiving a pension during the period of time
he or she holds office in the District of Columbia.
Imagine that. When this bill was written, it was a double-dipping
bill, and they thought that some President would leave office and want
to, somehow, seek work in the District of Columbia. Hardly, but I can
understand that provision, and I thank the chairman that this double-
dipping provision, he and I both find, is no longer necessary.
While this language may have made sense in 1958, that was before the
District even had home rule. The District had no mayor or city council.
It was under the total dominance of the Federal Government.
Since then, of course, there have been changes that I am pleased to
applaud, and the government of the District of Columbia pays for the
pensions of its own employees, so the Federal Government isn't in it at
all.
There is no reason the concern that a former President would receive
both a pension and a salary from the Federal Government should still be
a part of our law.
This is a good-government bill that makes fiscal sense by reducing
taxpayer-funded costs. I certainly urge my colleagues on both sides of
the aisle to support H.R. 1777.
I reserve the balance of my time.
Mr. CHAFFETZ. Mr. Speaker, I have no additional speakers. I urge its
passage. I really and truly enjoyed working with Members on both sides
of the aisle to get this through and urge its adoption.
I reserve the balance of my time.
Ms. NORTON. Mr. Speaker, I have no additional speakers.
I want to thank the chairman. We are off to a good start in this
second session of this Congress.
I yield back the balance of my time.
Mr. CHAFFETZ. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Utah (Mr. Chaffetz) that the House suspend the rules and
pass the bill, H.R. 1777, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________