[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.

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