What This Bill Does
This bill changes how much money former presidents receive from the federal government. It sets annual payments at $200,000 for each former president and their surviving spouses and adds income limits for wealthy former presidents to receive the full allowance.
Who It Affects
Former presidents becoming president after this bill passes and their surviving spouses. The bill does not affect any former presidents already in office when the bill becomes law.
Key Provisions
• Former presidents receive $200,000 per year paid by the Secretary of the Treasury, and the General Services Administrator may provide another $200,000 per year allowance (Sec. 2(a)(1) and (a)(2))
• Payments start the day after someone becomes a former president and continue monthly until their death (Sec. 2(b)(1))
• Former presidents stop receiving payments if they take a federal job with real pay (not just a title position) (Sec. 2(b)(2))
• Payments increase each December by the same percentage Social Security benefits increase (Sec. 2(c))
• If a former president's income exceeds $400,000 per year, their allowance is reduced by the amount they exceed that threshold (Sec. 2(d)(2))
• Surviving spouses of former presidents receive $100,000 per year, which also increases with Social Security adjustments (Sec. 2(b))
What Changes
The law currently in place is changed to increase former president payments and add income restrictions. Surviving spouses now receive $100,000 yearly instead of $20,000. The bill includes widowers (surviving husbands) of former presidents for the first time. Former presidents with higher incomes will receive smaller allowances based on how much they earn above $400,000.
Important Definitions
Adjusted gross income: Income calculated under federal tax law before deductions. Return information: Tax return details as defined in federal tax law.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 501
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.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 16, 2023
Ms. ERNST (for herself and Ms. HASSAN) introduced the following bill; which
was read twice and referred to the Committee on Homeland Security and
Governmental Affairs
A BILL
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.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Presidential Allowance
4
Modernization Act of 2023’’.
5
SEC. 2. AMENDMENTS.
6
(a) FORMER PRESIDENTS.—The first section of the
7
Act entitled ‘‘An Act to provide retirement, clerical assist-
8
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•S 501 IS
ants, and free mailing privileges to former Presidents of
1
the United States, and for other purposes’’, approved Au-
2
gust 25, 1958 (commonly known, and referred to in this
3
Act, as the ‘‘Former Presidents Act of 1958’’) (3 U.S.C.
4
102 note), is amended by striking the matter preceding
5
subsection (e) and inserting the following:
6
‘‘(a) ANNUITIES AND ALLOWANCES.—
7
‘‘(1) ANNUITY.—Each former President shall
8
be entitled for the remainder of his or her life to re-
9
ceive from the United States an annuity at the rate
10
of $200,000 per year, subject to subsections (b)(2)
11
and (c), to be paid by the Secretary of the Treasury.
12
‘‘(2) ALLOWANCE.—The Administrator of Gen-
13
eral Services is authorized to provide each former
14
President a monetary allowance at the rate of
15
$200,000 per year, subject to the availability of ap-
16
propriations and subsections (b)(2), (c), and (d).
17
‘‘(b) DURATION; FREQUENCY.—
18
‘‘(1) IN GENERAL.—The annuity and allowance
19
under subsection (a) shall each—
20
‘‘(A) commence on the day after the date
21
on which an individual becomes a former Presi-
22
dent;
23
‘‘(B) terminate on the date on which the
24
former President dies; and
25
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•S 501 IS
‘‘(C) be payable on a monthly basis.
1
‘‘(2) APPOINTIVE OR ELECTIVE POSITIONS.—
2
The annuity and allowance under subsection (a)
3
shall not be payable for any period during which a
4
former President holds an appointive or elective po-
5
sition in or under the Federal Government to which
6
is attached a rate of pay other than a nominal rate.
7
‘‘(c) COST-OF-LIVING INCREASES.—Effective Decem-
8
ber 1 of each year, each annuity and allowance under sub-
9
section (a) that commenced before that date shall be in-
10
creased by the same percentage by which benefit amounts
11
under title II of the Social Security Act (42 U.S.C. 401
12
et seq.) are increased, effective as of that date, as a result
13
of a determination under section 215(i) of that Act (42
14
U.S.C. 415(i)).
15
‘‘(d) LIMITATION ON MONETARY ALLOWANCE.—
16
‘‘(1) IN GENERAL.—Notwithstanding any other
17
provision of this section, the monetary allowance
18
payable under subsection (a)(2) to a former Presi-
19
dent for any 12-month period—
20
‘‘(A) except as provided in subparagraph
21
(B), may not exceed the amount by which—
22
‘‘(i) the monetary allowance that (but
23
for this subsection) would otherwise be so
24
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payable for such 12-month period, exceeds
1
(if at all)
2
‘‘(ii) the applicable reduction amount
3
for such 12-month period; and
4
‘‘(B) shall not be less than the amount de-
5
termined under paragraph (4).
6
‘‘(2) DEFINITION.—
7
‘‘(A) IN GENERAL.—For purposes of para-
8
graph (1), the term ‘applicable reduction
9
amount’ means, with respect to any former
10
President and in connection with any 12-month
11
period, the amount by which—
12
‘‘(i) the sum of—
13
‘‘(I) the adjusted gross income
14
(as defined in section 62 of the Inter-
15
nal Revenue Code of 1986) of the
16
former President for the most recent
17
taxable year for which a tax return is
18
available; and
19
‘‘(II) any interest excluded from
20
the gross income of the former Presi-
21
dent under section 103 of such Code
22
for such taxable year, exceeds (if at
23
all)
24
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‘‘(ii) $400,000, subject to subpara-
1
graph (C).
2
‘‘(B) JOINT RETURNS.—In the case of a
3
joint return, subclauses (I) and (II) of subpara-
4
graph (A)(i) shall be applied by taking into ac-
5
count both the amounts properly allocable to
6
the former President and the amounts properly
7
allocable to the spouse of the former President.
8
‘‘(C) COST-OF-LIVING
INCREASES.—The
9
dollar amount specified in subparagraph (A)(ii)
10
shall be adjusted at the same time that, and by
11
the same percentage by which, the monetary al-
12
lowance of the former President is increased
13
under subsection (c) (disregarding this sub-
14
section).
15
‘‘(3) DISCLOSURE REQUIREMENT.—
16
‘‘(A) DEFINITIONS.—In this paragraph—
17
‘‘(i) the terms ‘return’ and ‘return in-
18
formation’ have the meanings given those
19
terms in section 6103(b) of the Internal
20
Revenue Code of 1986; and
21
‘‘(ii) the term ‘Secretary’ means the
22
Secretary of the Treasury or the Secretary
23
of the Treasury’s delegate.
24
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‘‘(B) REQUIREMENT.—A former President
1
may not receive a monetary allowance under
2
subsection (a)(2) unless the former President
3
discloses to the Secretary, upon the request of
4
the Secretary, any return or return information
5
of the former President or spouse of the former
6
President that the Secretary determines is nec-
7
essary for purposes of calculating the applicable
8
reduction amount under paragraph (2) of this
9
subsection.
10
‘‘(C) CONFIDENTIALITY.—Except as pro-
11
vided in section 6103 of the Internal Revenue
12
Code of 1986 and notwithstanding any other
13
provision of law, the Secretary may not, with
14
respect to a return or return information dis-
15
closed to the Secretary under subparagraph
16
(B)—
17
‘‘(i) disclose the return or return in-
18
formation to any entity or person; or
19
‘‘(ii) use the return or return informa-
20
tion for any purpose other than to cal-
21
culate the applicable reduction amount
22
under paragraph (2).
23
‘‘(4) INCREASED
COSTS
DUE
TO
SECURITY
24
NEEDS.—With respect to the monetary allowance
25
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•S 501 IS
that would be payable to a former President under
1
subsection (a)(2) for any 12-month period but for
2
the limitation under paragraph (1) of this sub-
3
section, the Administrator of General Services, in co-
4
ordination with the Director of the United States
5
Secret Service, shall determine the amount of the al-
6
lowance that is needed to pay the increased cost of
7
doing business that is attributable to the security
8
needs of the former President.’’.
9
(b) SURVIVING
SPOUSES
OF
FORMER
PRESI-
10
DENTS.—
11
(1) INCREASE IN AMOUNT OF MONETARY AL-
12
LOWANCE.—Subsection (e) of the first section of the
13
Former Presidents Act of 1958 is amended—
14
(A) in the first sentence, by striking
15
‘‘$20,000 per annum,’’ and inserting ‘‘$100,000
16
per year (subject to paragraph (4)),’’; and
17
(B) in the second sentence—
18
(i) in paragraph (2)(B), by striking
19
‘‘and’’ at the end;
20
(ii) in paragraph (3)—
21
(I) by striking ‘‘or the govern-
22
ment of the District of Columbia’’;
23
and
24
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(II) by striking the period and
1
inserting ‘‘; and’’; and
2
(iii) by inserting after paragraph (3)
3
the following:
4
‘‘(4) shall, after its commencement date, be in-
5
creased at the same time that, and by the same per-
6
centage by which, annuities of former Presidents are
7
increased under subsection (c).’’.
8
(2) COVERAGE
OF
WIDOWER
OF
A
FORMER
9
PRESIDENT.—Subsection (e) of the first section of
10
the Former Presidents Act of 1958, as amended by
11
paragraph (1), is amended—
12
(A) by striking ‘‘widow’’ each place that
13
term appears and inserting ‘‘widow or wid-
14
ower’’; and
15
(B) by striking ‘‘she’’ and inserting ‘‘she
16
or he’’.
17
(c) SUBSECTION HEADINGS.—The first section of the
18
Former Presidents Act of 1958 is amended—
19
(1) in subsection (e), by inserting after the sub-
20
section enumerator the following: ‘‘WIDOWS
AND
21
WIDOWERS.—’’;
22
(2) in subsection (f), by inserting after the sub-
23
section enumerator the following: ‘‘DEFINITION.—’’;
24
and
25
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(3) in subsection (g), by inserting after the sub-
1
section enumerator the following: ‘‘AUTHORIZATION
2
OF APPROPRIATIONS.—’’.
3
SEC. 3. RULE OF CONSTRUCTION.
4
Nothing in this Act or an amendment made by this
5
Act shall be construed to affect—
6
(1) any provision of law relating to the security
7
or protection of a former President or a member of
8
the family of a former President; or
9
(2) funding, under the Former Presidents Act
10
of 1958 or any other law, to carry out any provision
11
of law described in paragraph (1).
12
SEC. 4. APPLICABILITY.
13
This Act and the amendments made by this Act shall
14
not apply to—
15
(1) any individual who is a former President on
16
the date of enactment of this Act; or
17
(2) the widow or widower of an individual de-
18
scribed in paragraph (1).
19
Æ
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