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                                                     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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

                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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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)).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \9\Id. (referencing subsections (b), (c), and (g)).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \10\Cong. Research Serv., August 2017 Insight at Tables 1-2.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \11\Cong. Research Serv., March 2016 Report, supra note 1 at 1-2 
(citing 3 U.S.C. Sec. 102, note).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = 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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