Presidential Allowance Modernization Act of 2025
Presidential Allowance Modernization Act of 2025
Plain Language Summary
# Presidential Allowance Modernization Act of 2025 — Summary **What the Bill Would Do** This bill would change how the U.S. government compensates former presidents and their surviving spouses. Currently, former presidents receive an annual allowance of about $250,600 plus government-provided office space and staff. Under this bill, future former presidents would instead receive two annual payments totaling $400,000: a $200,000 annuity and a $200,000 allowance. Both payments would increase annually to account for inflation.
However, if a former president's outside income (adjusted gross income plus certain investment earnings) exceeds $400,000 per year, their allowance would be reduced dollar-for-dollar above that threshold. The bill also increases benefits for surviving spouses of future former presidents. **Who It Affects and Current Status** This legislation would apply only to presidents who take office after the bill is enacted—not current or past former presidents. It affects future ex-presidents and their families. The bill is currently in committee and has not yet been voted on by Congress. Sponsored by Republican Senator Joni Ernst of Iowa, the bill essentially means wealthier former presidents would receive reduced government compensation, while those with lower outside income would receive the full $400,000 annually.
CRS Official Summary
Presidential Allowance Modernization Act of 2025This bill changes the compensation provided to future former Presidents and increases the compensation for the widow or widower of a future former President.Currently, former Presidents receive an allowance equivalent to the annual rate of basic pay of the head of an executive department ($250,600 in 2025), as well as government-provided office space and office staff.Under the bill, individuals who become former Presidents after enactment shall annually receive from the United States an annuity of $200,000 and a monetary allowance of $200,000. The allowance shall be reduced by the amount the former President's adjusted gross income and interest on certain tax-exempt bonds exceeds $400,000 (although the reduction may be decreased to account for certain security-related expenditures). Both the annuity and allowance shall receive annual cost-of-living increases. The annuity and allowance shall not be payable for any period during which the former President holds a federal government position with a rate of pay other than a nominal rate. Other changes made by the bill include (1) removing a statutory provision specifying that former Presidents receive government-provided office space and office staff, and (2) increasing from $20,000 to $100,000 the annual allowance for surviving spouses of individuals who become former Presidents after enactment and providing annual cost-of-living increases for such allowance.
Latest Action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.