[Congressional Record Volume 163, Number 185 (Monday, November 13, 2017)]
[House]
[Pages H9145-H9148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PRESIDENTIAL ALLOWANCE MODERNIZATION ACT OF 2017
Mr. JODY B. HICE of Georgia. Mr. Speaker, I move to suspend the rules
and pass the bill (H.R. 3739) 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. 3739
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 of 2017''.
SEC. 2. AMENDMENTS.
(a) Former Presidents.--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 (commonly known as the ``Former Presidents Act of
1958'') (3 U.S.C. 102 note), is amended--
(1) by redesignating subsections (f) and (g) as subsections
(h) and (i), respectively;
(2) by striking the matter preceding subsection (e) and
inserting the following:
``(a) Annuities and Allowances.--
``(1) Annuity.--Each former President shall be entitled to
receive from the United States an annuity, subject to
subsections (b) and (c)--
``(A) at the rate of $200,000 per year; and
``(B) which shall commence on the day after the date on
which an individual becomes a former President.
``(2) Allowance.--The General Services Administration is
authorized to provide each former President a monetary
allowance, subject to appropriations and subsections (b),
(c), and (d), at the rate of--
``(A) $500,000 per year for 5 years beginning on the day
after the last day of the period described in the first
sentence of section 5 of the Presidential Transition Act of
1963 (3 U.S.C. 102 note);
``(B) $350,000 per year for the 5 years following the 5-
year period under subparagraph (A); and
``(C) $250,000 per year thereafter.
``(b) Duration; Frequency.--
``(1) In general.--The annuity and monetary allowance under
subsection (a) shall--
``(A) terminate on the date that is 30 days after the date
on which the former President dies; and
``(B) be payable by the Secretary of the Treasury on a
monthly basis.
``(2) Appointive or elective positions.--The annuity and
monetary allowance under subsection (a) shall not be payable
for any period during which a 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) Cost-of-Living Increases.--Effective December 1 of
each year, each annuity and monetary allowance under
subsection (a) that commenced before that date shall be
increased by the same percentage by which benefit amounts
under title II of the Social Security Act (42 U.S.C. 401 et
seq.) are increased, effective as of that date, as a result
of a determination under section 215(i) of that Act (42
U.S.C. 415(i)).
``(d) Limitation on Monetary Allowance.--
``(1) In general.--Notwithstanding any other provision of
this section, the monetary allowance payable under subsection
(a)(2) to a former President for any 12-month period--
``(A) except as provided in subparagraph (B), may not
exceed the amount by which--
``(i) the monetary allowance that (but for this subsection)
would otherwise be so payable for the 12-month period,
exceeds (if at all)
``(ii) the applicable reduction amount for the 12-month
period; and
``(B) shall not be less than the amount determined under
paragraph (4).
``(2) Definition.--
``(A) In general.--For purposes of paragraph (1), the term
`applicable reduction amount' means, with respect to any
former President and in connection with any 12-month period,
the amount by which--
``(i) the earned income (as defined in section 32(c)(2) of
the Internal Revenue Code of 1986) of the former President
for the most recent taxable year for which a tax return is
available, exceeds (if at all)
``(ii) $400,000, subject to subparagraph (C).
``(B) Joint returns.--In the case of a joint return,
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) Cost-of-living increases.--The dollar amount
specified in subparagraph (A)(ii) shall be adjusted at the
same time that, and by the same percentage by which, the
monetary allowance of the former President is increased under
subsection (c) (disregarding this subsection).
``(3) Disclosure requirement.--
``(A) Definitions.--In this paragraph--
``(i) the terms `return' and `return information' have the
meanings given those terms in section 6103(b) of the Internal
Revenue Code of 1986; and
``(ii) the term `Secretary' means the Secretary of the
Treasury or the Secretary of the Treasury's delegate.
``(B) Requirement.--A former President may not receive a
monetary allowance under subsection (a)(2) unless the former
President discloses to the Secretary, upon the request of the
Secretary, any return or return information of the former
President or spouse of the former President that the
Secretary determines is necessary for purposes of calculating
the applicable reduction amount under paragraph (2) of this
subsection.
``(C) Confidentiality.--Except as provided in section 6103
of the Internal Revenue Code of 1986 and notwithstanding any
other provision of law, the Secretary may not, with respect
to a return or return information disclosed to the Secretary
under subparagraph (B)--
``(i) disclose the return or return information to any
entity or person; or
``(ii) use the return or return information for any purpose
other than to calculate the applicable reduction amount under
paragraph (2).
``(4) Increased costs due to security needs.--With respect
to the monetary allowance that would be payable to a former
President under subsection (a)(2) for any 12-month period but
for the limitation under paragraph (1) of this subsection,
the Administrator of General Services, in coordination with
the Director of the United States Secret Service, shall
determine the amount of the monetary allowance that is needed
to pay the increased cost of doing business that is
attributable to the security needs of the former
President.'';
(3) by inserting after subsection (e) the following:
``(f) Office Staff.--
``(1) In general.--The Administrator of General Services
shall, without regard to the civil service and classification
laws, provide for each former President an office staff of
not more than 13 individuals, at the request of the former
President, on a reimbursable basis.
``(2) Compensation.--The annual rate of compensation
payable to any individual under paragraph (1) shall not
exceed the highest annual rate of basic pay for positions at
level II of the Executive Schedule under section 5313 of
title 5, United States Code.
[[Page H9146]]
``(3) Selection; responsibility.--An individual employed
under this subsection--
``(A) shall be selected by the former President; and
``(B) shall be responsible only to the former President for
the performance of duties.
``(g) Office Space and Related Furnishings and Equipment.--
``(1) Office space.--The Administrator of General Services
(referred to in this subsection as the `Administrator')
shall, at the request of a former President, on a
reimbursable basis provide for the former President suitable
office space, as determined by the Administrator, at a place
within the United States specified by the former President.
``(2) Furnishings and equipment.--
``(A) Reimbursable.--The Administrator may, at the request
of a former President, provide the former President with
suitable office furnishings and equipment on a reimbursable
basis.
``(B) Without reimbursement.--
``(i) Grandfathered former presidents.--In the case of any
individual who is a former President on the date of enactment
of the Presidential Allowance Modernization Act of 2017, the
former President may retain without reimbursement any
furniture and equipment in the possession of the former
President.
``(ii) Presidential transition act.--A former President may
retain without reimbursement any furniture or equipment
acquired under section 5 of the Presidential Transition Act
of 1963 (3 U.S.C. 102 note).
``(iii) Excess furniture and equipment.--The Administrator
may provide excess furniture and equipment to the office of a
former President at no cost other than necessary
transportation costs.''; and
(4) by adding at the end the following:
``(j) Applicability.--Subsections (f), (g) (other than
paragraph (2)(B)(i) of that subsection), and (i) shall apply
with respect to a former President on and after the day after
the last day of the period described in the first sentence of
section 5 of the Presidential Transition Act of 1963 (3
U.S.C. 102 note).''.
(b) Surviving Spouses of Former Presidents.--
(1) Increase in amount of monetary allowance.--Subsection
(e) of the first section of the Former Presidents Act of 1958
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 inserting after paragraph (3) the following:
``(4) shall, after its commencement date, be increased at
the same time that, and by the same percentage by which,
annuities of former Presidents are increased under subsection
(c).''.
(2) Coverage of widower of a former president.--Subsection
(e) of the first section of the Former Presidents Act of
1958, as amended by paragraph (1), is amended--
(A) by striking ``widow'' each place it appears and
inserting ``widow or widower''; and
(B) by striking ``she'' and inserting ``she or he''.
(c) Subsection Headings.--The first section of the Former
Presidents Act of 1958 is amended--
(1) in subsection (e), by inserting after the subsection
enumerator the following: ``Widows and Widowers.--'';
(2) in subsection (h) (as redesignated by subsection
(a)(1)), by inserting after the subsection enumerator the
following: ``Definition.--''; and
(3) in subsection (i) (as redesignated by subsection
(a)(1)), by inserting after the subsection enumerator the
following: ``Authorization of Appropriations.--''.
(d) Conforming Amendments.--
(1) Title 5.--Subpart G of part III of title 5, United
States Code, is amended--
(A) in section 8101(1)(E), by striking ``1(b)'' and
inserting ``1(f)'';
(B) in section 8331(1)(I), by striking ``1(b)'' and
inserting ``1(f)'';
(C) in section 8701(a)(9), by striking ``1(b)'' and
inserting ``1(f)''; and
(D) in section 8901(1)(H) by striking ``1(b)'' and
inserting ``1(f)''.
(2) Presidential transition act of 1963.--Section 5 of the
Presidential Transition Act of 1963 (3 U.S.C. 102 note) is
amended by striking the last sentence.
SEC. 3. RULE OF CONSTRUCTION.
Nothing in this Act or an amendment made by this Act shall
be construed 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;
(2) funding, under the Former Presidents Act of 1958 or any
other law, to carry out any provision of law described in
paragraph (1); or
(3) funding for any office space lease in effect on the day
before the date of enactment of this Act under subsection (c)
of the first section of the Former Presidents Act of 1958 (as
in effect on the day before the date of enactment of this
Act) until the expiration date contained in the lease, if the
lease was submitted to the Committee on Oversight and
Government Reform of the House of Representatives on April
12, 2017.
SEC. 4. TRANSITION RULES.
(a) Former Presidents.--In the case of any individual who
is a former President on the date of enactment of this Act,
the amendments made by section 2(a) shall be applied as if
the commencement date referred in subsections (a)(1)(B) and
(a)(2)(A) of the first section of the Former Presidents Act
of 1958, as amended by section 2(a), coincided with the date
that is 180 days after the date of enactment of this Act.
(b) 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
first section of the Former Presidents Act of 1958, as
amended by section 2(b)(1), coincided with the date that is
180 days after the date of enactment of this Act.
SEC. 5. APPLICABILITY.
For a former President receiving a monetary allowance under
the Former Presidents Act of 1958 on the day before the date
of enactment of this Act, the limitation under subsection
(d)(1) of the first section of that Act, as amended by
section 2(a), shall apply to the monetary allowance of the
former President, except to the extent that the application
of the limitation would prevent the former President from
being able to pay the cost of a lease or other contract that
is in effect on the day before the date of enactment of this
Act and under which the former President makes payments using
the monetary allowance, as determined by the Administrator of
General Services.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Georgia (Mr. Jody B. Hice) and the gentlewoman from Illinois (Ms.
Kelly) each will control 20 minutes.
The Chair recognizes the gentleman from Georgia.
General Leave
Mr. JODY B. HICE of Georgia. Mr. Speaker, I ask unanimous consent
that all Members have 5 legislative days to revise and extend their
remarks and include extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Georgia?
There was no objection.
Mr. JODY B. HICE of Georgia. Mr. Speaker, I yield myself such time as
I may consume.
I rise today in support of H.R. 3739, a bill I introduced to limit
the allowances paid to former Presidents.
Congress passed the Former Presidents Act of 1958 to maintain the
dignity of the Office of the President and assist former Presidents who
did not have sufficient financial resources. It is a noble purpose, but
times have changed. When the Former Presidents Act was passed, Herbert
Hoover and Harry Truman were the only two former living Presidents.
Unlike the more recent former Presidents, they did not earn millions of
dollars from speaking fees and book deals after leaving office.
For example, President Clinton earned more than $100 million in
speaking fees between 2001 and 2013. President George W. Bush received
$10 million for his book deal. In April 2017, President Obama spoke at
a Wall Street firm for a fee of $400,000, and he and the former First
Lady also reportedly signed a joint book deal worth over $65 million.
It is a fact of the modern Presidency that these lucrative financial
opportunities are available now as they were not to former Presidents.
Because of these opportunities, it is no longer necessary to provide
taxpayer-funded support to former Presidents in the same way as
envisioned in 1958.
H.R. 3739 presents a fair way to reduce taxpayer support to those
former Presidents who no longer need such assistance. Furthermore, with
our Nation facing $20 trillion in debt, we must find ways to save
taxpayer money, and our former Presidents will lead by example in
cutting costs under this bill.
The Presidential Allowance Modernization Act reforms pensions and
allowances provided to former Presidents and surviving spouses and
reduces unnecessary costs to the taxpayer.
This bill sets a former President's pension at $200,000, compared to
current law where the pension is linked to the Cabinet Secretary's pay
level, currently at $204,700. Surviving spouses of former Presidents
will be eligible for a pension of $100,000, a more realistic amount
than the $20,000 pension available under current law.
Currently, former Presidents are also eligible for other benefits
paid through annual appropriations. These include
[[Page H9147]]
office space and leases, furniture and supplies, and staff salaries.
Such additional benefits provided to former Presidents totaled $2.84
million in fiscal year 2017 and $2.43 million the year before.
Instead, this bill will provide a $500,000 lump sum allowance for
each eligible former President to cover such expenses. This allowance
will be reduced dollar-for-dollar for any earned income in excess of
$400,000. For example, a former President making $900,000 in earned
income would not be eligible for the allowance.
For former Presidents eligible for the allowance, the allowance will
decrease over time. Five years after the former President has left
office, the allowance is reduced to $350,000, and then 10 years later,
the allowance is reduced to $250,000.
In the 114th Congress, the Presidential Allowance Modernization Act
of 2016 was passed, but it was not signed into law. Senator Joni Ernst
and I have worked with other stakeholders to improve the bill in 2017.
This 2017 bill advances the same principles of accountability and
modernization as the 2016 legislation but makes some key changes.
First, the bill provides a 6-month period after the date of enactment
before the bill takes effect to ensure current former Presidents have
time to plan for the changes.
Second, the bill increases the allowance amount from $200,000 in the
previous bill language to $500,000. However, as described earlier, this
allowance decreases over time, but it is not entirely eliminated should
a former President be eligible for the allowance.
The office of the former President is an important institution to
support in a nominal way. We were all recently reminded of the
importance of this institution by the joint effort of former Presidents
to raise hurricane relief funds.
The third change made in this version of the bill is the pension and
allowance are terminated 30 days after the death of a former
President--instead of immediately upon death. This change was made to
accommodate the work that must be done to wrap up the affairs of a
former President.
{time} 1645
Finally, I want to assure my colleagues that this bill does not
impact funding for the security or protection of a former President.
Again, I want to thank Senator Ernst for her work on this bill in the
previous years and this particular bill in 2017. It has been a real
pleasure to work with her and her staff.
I want to acknowledge Members such as Mr. Cummings, Mr. Grothman, and
the former chairman, Mr. Chaffetz, whose work on this bill last year
positioned us to be successful this year. I also want to express my
gratitude to the professional staff on the House Oversight and
Government Reform Committee, who have put in so many hours of work on
this legislation.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Ms. KELLY of Illinois. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, this legislation would amend the Former Presidents Act
of 1958 to cap a former President's annual pension at $200,000 indexed
to inflation. The bill also would provide an additional annual
allowance for expenses that would start at $500,000 per year and
decrease gradually to $250,000. Under this bill, the annual allowance
would be reduced dollar for dollar in instances in which a former
President's adjusted gross income in a taxable year exceeds $400,000.
Taxpayers should not have to pay for a former President's allowance
if the former President is making a comfortable living earning millions
of dollars a year, as many former Presidents do. This legislation would
not affect any funding for the security and protection of former
Presidents and their spouses. This legislation would update the pension
amount for surviving spouses of former Presidents, which has been
unchanged since 1958, by increasing it from $20,000 to $100,000.
Last Congress, President Obama vetoed a previous version of this
legislation because it would have had unintended consequences. For
example, due to technical drafting errors, it would have resulted in
the immediate termination of the salary and benefits of certain staff
of the former Presidents. It would also have resulted in the
termination of leases for office space and the removal of furniture and
equipment. That was clearly not an acceptable situation, and I am glad
we have been able to resolve these problems in the legislation before
us today.
I believe this bill makes fiscal sense, and I urge Members to support
it.
Mr. Speaker, I yield 3 minutes to the gentlewoman from the District
of Columbia (Ms. Norton).
Ms. NORTON. Mr. Speaker, I thank my good friend from Illinois for
yielding to me.
I would also like to thank Representative Hice, our own Chairman
Gowdy, and Ranking Member Cummings for including in this bill, like the
similar bill from the last Congress, an update to the Former Presidents
Act to reflect the positively changed status of the District of
Columbia government since the enactment of the Former Presidents Act of
1958. As it affects the District of Columbia, this bill provides an
update to indeed reflect the law regarding the District of Columbia as
it is now as opposed to how it was at the time the Former Presidents
Act was originally passed in 1958.
In 1958, the District of Columbia had no elected local government. It
didn't have any member of this body to draw this matter to the
attention of the House. Instead, the D.C. government was run by three
Presidentially appointed commissioners, and all locally raised D.C.
funds were deposited in the U.S. Treasury--locally raised, but put
right there in the Treasury--and the Federal Government paid the
employer contribution of the pensions of D.C. government employees. You
can see why D.C. thought of itself at that time as a colony of the
United States of America.
We have changed all that. Thanks to the Home Rule Act and the work of
this Congress, this bill would treat employment of former Presidents
and the widows of former Presidents in the District government in the
same manner as employment in other local and State governments.
The Former Presidents Act was intended to prevent former Presidents
and widows of former Presidents from double-dipping in the Treasury by
collecting a Federal pension during any period they were employed by
the Federal Government or the D.C. government, just in case that
happened. However, the Former Presidents Act became outdated with
respect to the D.C. government after Congress passed the Home Rule Act
of 1973, and it needs to be updated.
The Home Rule Act granted the District of Columbia a locally elected
government. Under the Home Rule Act, D.C. local funds consisting of
local taxes and fees are deposited in D.C. government accounts, not the
U.S. Treasury. Also, because of the Home Rule Act, former Presidents
and widows of former Presidents would not be double-dipping by
collecting both a Federal pension and a salary from the D.C. government
because they are funded by what is now different governments.
I am very grateful that the House passed this bill last year. This
is, of course, leftover business from more than 40 years ago.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Ms. KELLY of Illinois. Mr. Speaker, I yield an additional 1 minute to
the gentlewoman.
Ms. NORTON. Mr. Speaker, I thank my good friend for yielding me
another minute.
While the District of Columbia struggles to become the 51st State, we
certainly appreciate at least being recognized as an independent
jurisdiction and no longer a ward of the Federal Government, as granted
by the Home Rule Act of 1973.
I particularly appreciate my friends from the Oversight and
Government Reform Committee, on which I serve, seeing to it that this
bill came to the floor, and Congressman Hice as well, and I appreciate
the leadership for placing this bill on this calendar.
Mr. Speaker, I strongly urge the adoption of this bill.
Ms. KELLY of Illinois. Mr. Speaker, I yield back the balance of my
time.
Mr. JODY B. HICE of Georgia. Mr. Speaker, I urge adoption of this
bill,
[[Page H9148]]
and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Georgia (Mr. Jody B. Hice) that the House suspend the
rules and pass the bill, H.R. 3739, 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.
____________________