[Senate Report 115-211]
[From the U.S. Government Publishing Office]
Calendar No. 337
115th Congress } { Report
SENATE
2d Session } { 115-211
_______________________________________________________________________
PRESIDENTIAL ALLOWANCE
MODERNIZATION ACT OF 2017
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 1791
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
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
February 26, 2018.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
79-010 WASHINGTON : 2018
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona CLAIRE McCASKILL, Missouri
ROB PORTMAN, Ohio THOMAS R. CARPER, Delaware
RAND PAUL, Kentucky HEIDI HEITKAMP, North Dakota
JAMES LANKFORD, Oklahoma GARY C. PETERS, Michigan
MICHAEL B. ENZI, Wyoming MAGGIE HASSAN, New Hampshire
JOHN HOEVEN, North Dakota KAMALA D. HARRIS, California
STEVE DAINES, Montana DOUG JONES, Alabama
Christopher R. Hixon, Staff Director
Gabrielle D'Adamo Singer, Chief Counsel
Steven G. Lozano, U.S Government Accountability Office Detailee
Margaret E. Daum, Minority Staff Director
Stacia M. Cardille, Minority Chief Counsel
Charles A. Moskowitz, Minority Senior Legislative Counsel
Katherine C. Sybenga, Minority Senior Counsel
Laura W. Kilbride, Chief Clerk
Calendar No. 337
115th Congress } { Report
SENATE
2d Session } { 115-211
======================================================================
PRESIDENTIAL ALLOWANCE MODERNIZATION ACT OF 2017
_______
February 26, 2018.--Ordered to be printed
_______
Mr. Johnson, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 1791]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 1791) 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, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Summary..............................................1
II. Background and Need for the Legislation..........................2
III. Legislative History..............................................4
IV. Section-by-Section Analysis......................................4
V. Evaluation of Regulatory Impact..................................5
VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Bill, as Reported............9
I. Purpose and Summary
S. 1791, the Presidential Allowance Modernization Act of
2017, amends the Former Presidents Act of 1958 (FPA) to
modernize the monetary allowances and pensions payable to
former Presidents. Specifically, it revises provisions relating
to presidential pensions to allow a former President a pension
of $200,000 and an additional monetary allowance per year for
office space and staff to conduct his or her duties as a former
President. However, if a former President earned income
exceeding $400,000 in a taxable year, the bill reduces his or
her monetary allowance by the amount that a former President's
earned income in a taxable year exceeds $400,000.
Additionally, S. 1791 would clarify that a widow or widower
of a former President is eligible for a survivor's annuity, and
would increase the annual annuity threshold from $20,000 to
$100,000.\1\
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\1\In the 114th Congress, the Committee approved, and the Senate
passed, H.R. 1777, the Presidential Allowance Modernization Act of
2016. The bill was approved by the House and the Senate, but vetoed by
President Obama on July 22, 2016. The need for the legislation remains
the same, and some details of the legislation have changed to address
concerns raised by former Presidents. Accordingly, substantial portions
of section 2 of this report have been drawn from Senate Report 114-271.
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II. Background and Need for Legislation
Prior to 1958, former Presidents did not receive a pension
or any other financial assistance from the Federal
Government.\2\ While some former Presidents returned to
comfortable lives after leaving office, others, like President
Harry S. Truman, struggled financially.\3\ When the FPA was
enacted in 1958, it was intended to maintain the dignity of the
Office of the President\4\ by providing former United States
Presidents with ``a pension, support staff, office support,
travel funds, and mailing privileges'' after they leave
office.\5\
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\2\Wendy Ginsberg & Daniel J. Richardson, Cong. Research Serv.
RL34631, Former Presidents: Pensions, Office Allowances, and Other
Federal Benefits 1 (2016) [hereinafter Cong. Research Serv., March 2016
Report], available at https://fas.org/sgp/crs/misc/RL34631.pdf.
\3\Id. at 1.
\4\S. Rep. No. 85-47, at 2 (1957).
\5\Cong. Research Serv., March 2016 Report, supra note 1 at
Summary.
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Under the FPA, a former President receives a pension that
is equal to the annual pay of the head of an Executive
department.\6\ This amount was $207,000 in fiscal year (FY)
2016 and increased to $210,000 in FY 2017.\7\ Additionally, the
FPA provides an annual pension of $20,000 to the widow of a
former President.\8\
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\6\3 U.S.C. Sec. 102, note, Former Presidents; Allowance;
Selection, Compensation, and Status of Office Staff; Office Space;
Widow's Allowance, Termination; Former President Defined (referencing
subsection (a)).
\7\Barbara L. Schwemle, Cong. Research Serv. IN10759, Allowances
and Office Staff for Former Presidents, FY2016-FY2018 Appropriations
(2017) [hereinafter Cong. Research Serv., August 2017 Insight],
available at https://fas.org/sgp/crs/misc/IN10759.pdf.
\8\3 U.S.C. Sec. 102, note, Former Presidents; Allowance;
Selection, Compensation, and Status of Office Staff; Office Space;
Widow's Allowance, Termination; ``Former President'' Defined
(referencing subsection (e)).
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The FPA also requires Congress to appropriate funds, and
the General Services Administration (GSA) to provide funds, to
former Presidents to cover their staffing and office needs.\9\
The statutory obligation arose from Congress's recognition that
former Presidents should have funding to continue their
required official business.
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\9\Id. (referencing subsections (b), (c), and (g)).
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In FY 2017, Congress appropriated $2,708,000 to GSA to
cover the annual allowance of all five living former
Presidents, which paid for staff compensation and benefits,
travel costs, office space, communications, printing, office
furniture, equipment, as well as supplies and materials. Of
this appropriation, $511,000 went toward office space rental
for former President Bill Clinton and $472,000 toward office
space rental for former President George W. Bush.\10\
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\10\Cong. Research Serv., August 2017 Insight at Tables 1-2.
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In addition to the FPA, the Presidential Transition Act
provides an outgoing President with seven months of transition
services, and Federal law requires that former Presidents and
their spouses (and children under the age of 16) receive
lifetime Secret Service protection.\11\
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\11\Cong. Research Serv., March 2016 Report, supra note 1 at 1-2
(citing 3 U.S.C. Sec. 102, note).
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Some critics of the FPA say that the statute subsidizes
former Presidents who do not struggle financially.\12\
President Clinton and President George W. Bush have reportedly
earned millions since leaving office, with President Clinton
earning more than $100 million between 2001 and 2013,\13\ and
President George W. Bush earning at least $15 million for paid
speeches in the first two years after he left office in
2009.\14\ In addition to speaking fees, both of those former
Presidents have reportedly benefited from book deals: President
Clinton reportedly received a $15 million advance for his 2004
memoir\15\ and President George W. Bush reportedly was paid $7
million for his memoir.\16\
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\12\Cong. Research Serv., March 2016 Report, supra note 1 at 3.
\13\P. Rucker, T. Hamburger, & A. Becker, How the Clintons went
from `dead broke' to rich: Bill earned $104.9 million for speeches,
Wash. Post, June 26, 2014, https://www.washingtonpost.com/politics/how-
the-clintons-went-from-dead-broke-to-rich-bill-earned-1049-million-for-
speeches/2014/06/26/8fa0b372-fd3a-11e3-8176-f2c941cf35f1_story.html.
\14\Jennifer Epstein, Bush Made $15M on speaking circuit, Politico,
May 21, 2011, http://www.politico.com/news/stories/0511/55372.html.
\15\Mike McIntire, Clintons Made $109 Million in Last 8 Years, N.
Y. Times, April 5, 2008, http://www.nytimes.com/2008/04/05/us/politics/
05clintons.html.
\16\Lynn Sherr, George W. Bush Lands $7 Million Book Deal, The
Daily Beast (March 19, 2009, 3:06 AM), https://www.thedailybeast.com/
george-w-bush-lands-dollar7-million-book-deal.
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In recognition of the changed circumstances since President
Truman left office, S. 1791 would modify the amount provided by
the Federal Government to former Presidents. S. 1791 would set
the annual pension for a former President at $200,000 as well
as provide an annual monetary allowance of up to $500,000 for
office expenses. Both the pension and the annual monetary
allowance would be subject to cost-of-living increases as
provided under title II of the Social Security Act. However,
unlike the FPA, S. 1791 would cap the annual monetary allowance
at $500,000 as well as gradually reduce the amount over a 10-
year time period. For the first five years the monetary
allowance will remain at $500,000 per year after which it would
be reduced to $350,000 per year for the next five years and
$250,000 per year thereafter. The monetary allowance will also
be reduced by the amount that a former President's earned
income exceeds $400,000 per year. The payment of the monetary
allowance begins on the day after the date on which the
individual becomes a former President.
S. 1791 also increases the pension provided to a widow or
widower of a former President--an amount that has gone
unchanged since the original legislation was enacted in 1958--
increasing the annual annuity from $20,000 to $100,000.
The Presidential Allowance Modernization Act of 2017
ensures that the Secret Service will work with GSA to determine
the amount of the allowance needed to pay for the increased
cost of doing business that is attributable to the security
needs of the former President.
III. Legislative History
S. 1791, the Presidential Allowance Modernization Act of
2017, was introduced on September 12, 2017, by Senator Joni
Ernst and was referred to the Committee on Homeland Security
and Governmental Affairs. S. 1791 was cosponsored by Senators
Michael Enzi, Deb Fischer, and Claire McCaskill.
The Committee considered S. 1791 at an October 4, 2017
business meeting. The Committee ordered the bill reported
favorably by voice vote, en bloc, without amendment. Senators
present for the vote were Johnson, Lankford, Daines, McCaskill,
Tester, Heitkamp, Hassan, and Harris.
IV. Section-by-Section Analysis of the Bill, as Reported
Section 1. Short title
This section establishes the short title of the bill as the
``Presidential Allowance Modernization Act of 2017.''
Section 2. Amendments
This section sets the annuity of former Presidents at
$200,000 per year, plus the annual Social Security cost-of-
living adjustment, and an additional monetary allowance of
$500,000 per year that is also subject to a Social Security
cost-of-living adjustment. Both the annuity and the monetary
allowance begin on the day after the date on which an
individual becomes a former President.
The amount of the monetary allowance will remain at
$500,000 per year for five years, after which it will be
reduced to $350,000 per year for the next five years and
$250,000 per year thereafter. It sets confidentiality
requirements to ensure the privacy of former Presidents. It
ensures that the Secret Service is consulted on security costs
to determine the amount of the monetary allowance that is
necessary to pay the increased cost of doing business that is
attributable to the security needs of the former President.
This section also outlines the duration, frequency, and
limitations of both the annuity and monetary allowance. Among
these limitations are that a former President is not eligible
to collect the annuity and monetary allowance when serving in
an appointive or elective office in the Federal Government.
Additionally, the section limits the monetary allowance
provided to a former President based on his or her yearly
earned income. If a former President's earned income, as
defined in the Internal Revenue Code of 1986, exceeds $400,000
within any 12-month period, the monetary allowance is reduced
dollar-for-dollar by the amount exceeding $400,000.
Former Presidents are permitted to hire an office staff of
no more than 13 individuals, who are compensated by GSA on a
reimbursable basis. Likewise, GSA is responsible for providing
office space, furnishing, and equipment for former Presidents
on a reimbursable basis.
This section also increases the pension for the surviving
spouse of a former President from $20,000 a year to $100,000
annually, taking into account annual cost-of-living increases
equal to those provided under the Social Security Act and
includes a technical correction to make the recipient of such
pension gender neutral.
Section 3. Rule of construction
This section clarifies and affirms that nothing in the
legislation alters the funding of the security or protection of
a former President or funding for any office space lease in
effect of the day before the enactment of the legislation.
Section 4. Transition rules
This section sets rules for implementing this legislation
with respect to currently qualifying former Presidents and
their widows or widowers. The legislation applies retroactively
to former Presidents and any individual who is a widow or
widower of a former President beginning 180 days after the
enactment of this bill.
Section 5. Applicability
This section makes clear that the new reduction in monetary
allowance should not apply to current former Presidents in such
a way as to make the former President break or have trouble
paying a current lease.
V. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. Congressional Budget Office Cost Estimate
February 12, 2018.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1791, the
Presidential Allowance Modernization Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dan Ready.
Sincerely,
Keith Hall,
Director.
Enclosure.
S. 1791--Presidential Allowance Modernization Act of 2017
Summary: Under current law, former Presidents receive
annual pensions that equal a Cabinet Secretary's basic pay
(about $211,000 in 2018); the annual pension for a President's
surviving spouse is set at $20,000. Current law also provides
former Presidents with annual allowances to pay for staff,
office space, and other related expenses.
S. 1791 would decrease former Presidents' pensions to
$200,000 per year but would increase the pension of a surviving
spouse to $100,000. Both pensions would be indexed to
inflation. For the first 10 years after leaving office, a
former President would receive a $500,000 annual expense
allowance (also indexed to inflation) that would be reduced by
$1 for every dollar over $400,000 earned the year before; the
allowance would eventually drop to $250,000 by the end of 10
years.
CBO estimates that implementing the bill would reduce
discretionary spending by $24 million over the 2018-2027
period, assuming that appropriations are reduced by the
estimated amounts. In addition, enacting the bill would
increase direct spending by $1 million. Because enacting S.
1791 would affect direct spending, pay-as-you-go procedures
apply. Enacting the bill would not affect revenues.
CBO estimates that enacting S. 1791 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
By decreasing the pensions of former Presidents, S. 1791
would impose a private-sector mandate, as defined in the
Unfunded Mandates Reform Act (UMRA). The cost of complying with
the mandate would be the total decrease in pension income
earned by former Presidents (who left office before enactment
of this bill) and would fall well below the annual threshold
established in UMRA for private-sector mandates ($156 million
in 2017, adjusted annually for inflation). S. 1791 contains no
intergovernmental mandates.
Estimated cost to the Federal Government: The estimated
budgetary effect of S. 1791 is shown in the following table.
The budgetary effects fall within budget function 800 (general
government).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
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2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
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DECREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level..................... * -1 -2 -2 -3 -3 -3 -3 -4 -4 -9 -27
Estimated Outlays................................. * -1 -2 -2 -3 -3 -3 -3 -4 -4 -8 -24
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority........................ * * * * * * * * * * 1 1
Estimated Outlays................................. * * * * * * * * * * 1 1
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* = between -$500,000 and $500,000. Components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes that S.
1791 will be enacted near the beginning of calendar year 2018
and that future appropriations for the affected activities will
be reduced by the amount of the estimated savings.
Spending subject to appropriation
Under current law, the General Services Administration
(GSA) is authorized to provide office staff, office space, and
equipment to former Presidents. Those activities are funded by
annual appropriations. S. 1791 would prevent GSA from paying
for those activities from annual appropriations and would
instead require former Presidents to directly fund their own
staff, space, and equipment. (GSA, however, could still pay for
the current leases of former Presidents until those leases
expired.) CBO estimates that implementing this provision would
reduce outlays by $24 million over the next 10 years.
Direct spending
S. 1791 would reduce annual pensions for former Presidents,
increase pensions for their surviving spouses, and entitle
former Presidents to a nominal allowance. Taken together, the
provisions would increase direct spending by $1 million over
the 2018-2027 period. Over time, the effect of smaller pensions
would offset a larger portion of the allowances that are paid
as direct spending. CBO estimates that enacting the bill would
slightly reduce direct spending in the final years of the
budget window.
Presidential Pensions. Under the bill, the annual pensions
provided to former Presidents would initially drop by about
$11,000 to $200,000. A surviving spouse's pension would
increase from $20,000 to $100,000. Both of those annual amounts
would be indexed to inflation. Taken together, those provisions
would reduce spending for pensions by less than $500,000 over
the next 10 years, CBO estimates. Although Presidential
pensions are paid out of a discretionary appropriation, because
former Presidents are entitled to receive those pensions, CBO
considers them to be direct spending.
Allowances for Former Presidents. Under S. 1791, a former
President's expense allowance would decline over time. The
amount would be set at $500,000 for recently retired Presidents
and would eventually drop to $250,000 after a President has
been out of office for 10 years. Under the legislation, the
maximum allowance would depend on the former President's
earnings the year before and would be indexed to inflation.
Using publicly available information about the income of former
Presidents in recent years, CBO expects that beginning in 2018,
at least three former Presidents would be ineligible to receive
any allowance (other than for existing leases) under the
legislation. As a result, implementing the bill would increase
direct spending by less than $500,000 in each year over the
2018-2027 period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending and
revenues. Enacting S. 1791 would affect direct spending by less
than $500,000 in each year over the next 10 years, and would
increase direct spending by $1 million over the 2018-2027
period.
Increase in long-term direct spending and deficits: CBO
estimates that enacting S. 1791 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2028.
Mandates: S. 1791 would impose a private-sector mandate, as
defined in UMRA, by decreasing the pensions of former
Presidents, about $211,000 for calendar year 2018. The bill
would reduce an earned benefit of former Presidents by
decreasing their federal pension to $200,000 per year, indexed
to inflation. The cost of this mandate would be the total
decrease in pension income earned by the former Presidents who
left office before enactment of this bill and would fall well
below the annual threshold established in UMRA for private-
sector mandates ($156 million in 2017, adjusted annually for
inflation). S. 1791 contains no intergovernmental mandates.
Previous CBO estimate: On November 13, 2017, CBO
transmitted a cost estimate for H.R. 3739, as posted on the
website of the House Committee on Oversight and Government
Reform on November 10, 2017. Instead of entitling former
Presidents to an allowance, enacting that version of H.R. 3739
would authorize the appropriation of an allowance up to the
same maximums specified in S. 1791. CBO's cost estimates for
both bills reflect that difference.
Estimate prepared by: Federal costs: Dan Ready; Mandates:
Andrew Laughlin.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
VII. Changes in Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows: (existing law
proposed to be omitted is enclosed in brackets, new matter is
printed in italic, and existing law in which no change is
proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 3--THE PRESIDENT
* * * * * * *
CHAPTER 2--OFFICE AND COMPENSATION OF THE PRESIDENT
* * * * * * *
FORMER PRESIDENTS ACT OF 1958
* * * * * * *
SEC. 102. COMPENSATION OF THE PRESIDENT
[(a) Each former President shall be entitled for the
remainder of his life to receive from the United States a
monetary allowance at a rate per annum, payable monthly by the
Secretary of the Treasury, which is equal to the annual rate of
basic pay, as in effect from time to time, of the head of an
executive department, as defined in section 101 of title 5,
United States Code. However, such allowance shall not be paid
for any period during which such former President holds an
appointive or elective office or position in or under the
Federal Government or the government of the District of
Columbia to which is attached a rate of pay other than a
nominal rate.
[(b) The Administrator of General Services shall, without
regard to the civil-service and classification laws, provide
for each former President an office staff. Persons employed
under this subsection shall be selected by the former President
and shall be responsible only to him for the performance of
their duties. Each former President shall fix basic rates of
compensation for persons employed for him under this paragraph
which in the aggregate shall not exceed $96,000 per annum
except that for the first 30-month period during which a former
President is entitled to staff assistance under this
subsection, such rates of compensation in the aggregate shall
not exceed $150,000 per annum. The annual rate of compensation
payable to any such person shall not exceed the highest annual
rate of basic pay now or hereafter provided by law for
positions at level II of the Executive Schedule under section
5313 of title 5, United States Code. Amounts provided for
`Allowances and Office Staff for Former Presidents' may be used
to pay fees of an independent contractor who is not a member of
the staff of the office of a former President for the review of
Presidential records of a former President in connection with
the transfer of such records to the National Archives and
Records Administration or a Presidential Library without regard
to the limitation on staff compensation set forth herein.
[(c) The Administrator of General Services shall furnish
for each former President suitable office space appropriately
furnished and equipped, as determined by the Administrator, at
such place within the United States as the former President
shall specify.
[(d) [Repealed. Pub. L. 86-682, Sec. 12(c), Sept. 2, 1960,
74 Stat. 730. See sections 3214 and 3216 of title 39.]]
(a) In General.--Each former President shall be entitled to
receive from the United States--
(1) an annuity, subject to subsections (b) and (c)--
(A) at a 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; and
(2) a monetary allowance, subject to 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 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
in 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 such 12-month period;
exceeds (if at all)
(ii) the applicable reduction amount
for such 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 sum of--
(I) the adjusted gross income
(as defined in section 62 of
the Internal Revenue Code of
1986) of the former President
for the most recent taxable
year for which a tax return is
available; and
(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) 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 the purpose 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), the Administrator of General Services, in
coordination with the Director of the United States
Secret Service, shall determine the amount of the
allowance that is needed to pay the increased cost of
doing business that is attributable to the security
needs of the former President.
(e) Widows and Widowers.--The [widow] widow or widower of
each former President shall be entitled to receive from the
United States a monetary allowance at a rate of [$20,000 per
annum] $100,000 per year (subject to paragraph (4)), payable
monthly by the Secretary of the Treasury, if such [widow] widow
or widower shall waive the right to each other annuity or
pension to which [she] she or he is entitled under any other
Act of Congress. The monetary allowance of such [widow] widow
or widower--
(1) commences on the day after the former President
dies;
(2) terminates on the last day of the month before
such widow--
(A) dies; or
(B) remarries before becoming 60 years of
age; [and]
(3) is not payable for any period during which such
widow holds an appointive or elective office or
position in or under the Federal Government [or the
government of the District of Columbia] to which is
attached a rate of pay other than a nominal rate[.];
and
(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).
(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.
(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.
[(f)] (h) Definition.--* * *
[(g)] (i) Authorization of Appropriations.--There are
authorized to be appropriated to the Administrator of General
Services up to $1,000,000 for each former President and up to
$500,000 for the spouse of each former President each fiscal
year for security and travel related expenses: Provided, That
under the provisions set forth in section 3056, paragraph (a),
subparagraph (3) of title 18, United States Code, the former
President and/or spouse was not receiving protection for a
lifetime provided by the United States Secret Service under
section 3056 paragraph (a) subparagraph (3) of title 18, United
States Code; the protection provided by the United States
Secret Service expired at its designated time; or the
protection provided by the United States Secret Service was
declined prior to authorized expiration in lieu of these funds.
(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).
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