House bill could give former presidents a pay cut

Gregory Korte | USA TODAY

WASHINGTON — U.S taxpayers provide former presidents with a pension of $203,000 a year — plus annual expenses that can add up to more than $1 million.

But most of them don't need the money, says Rep. Jason Chaffetz, R-Utah. He wants to reduce the pension to $200,000, and phase out expense allowances for former presidents who have outside income.

A bill he introduced this week would cap expenses at $200,000 a year. And once a former president makes more than $400,000 a year, that expense budget would be reduced dollar-for-dollar, eliminating it entirely for former presidents making more than $600,000.

"The basic premise here is, if they want to go fishing in Utah for the rest of their lives, they can do that. They will be well compensated for the rest of their lives," Chaffetz said. "If they're going to make millions of dollars, the taxpayers shouldn't have to subsidize them."

The basic formula for paying former presidents has been unchanged since Congress passed the Former Presidents Act in 1958. Congress, moved by President Truman's complaints of financial difficulties, gave former presidents a pension equal to the salary of a cabinet secretary — currently $203,000 a year — for the rest of their lives.

But in modern times, former presidents have made a comfortable living writing memoirs, giving speeches and running foundations. According to a Washington Post analysis of personal financial disclosures, former President Clinton earned $104.7 million in speaking fees from the time he left office until 2013, the last year his wife had to file a disclosure as Secretary of State.

Chaffetz's bill would also increase the pensions of presidential widows from $20,000 to $100,000 — and updates the language to include widowers. "They've sacrificed a great deal, and they need to be taken care of as well," Chaffetz said. (The only current surviving presidential widow, Nancy Reagan, has waived her pension, though she was budgeted $7,000 for postage last year.)

Former presidents also get other benefits that wouldn't be impacted by the bill. They get health benefits, a Secret Service detail and unlimited postage for official correspondence. They may also get funeral and burial benefits.

Chaffetz has introduced the bill before, but it died in the last two Congresses. This time could be different. He has a Democrat, Rep. Elijah Cummings of Maryland, as a co-sponsor. And Chaffetz is now the chairman of the House Committee on Oversight and Government Reform, which has jurisdiction.

"It will certainly make it out of committee. I can promise you that," Chaffetz said.

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