The "Presidential Allowance Modernization Act of 2025" modifies the financial benefits and allowances for former presidents and their surviving spouses, setting specific payment amounts, adjusting for income and cost of living, and ensuring continued security coverage.
Joni Ernst
Senator
IA
The Presidential Allowance Modernization Act of 2025 amends the Former Presidents Act to modernize the benefits and allowances provided to former presidents and their surviving spouses. It sets a fixed annual annuity and allowance, both subject to cost-of-living adjustments, while also limiting the allowance based on the former president's income. The bill increases benefits for surviving spouses, extends benefits to widowers, and requires disclosure of tax information for allowance calculation, while ensuring no changes to existing security provisions for former presidents and their families. Notably, current former Presidents are exempt from the provisions of this act.
Presidential Allowance Modernization Act of 2025: Fixed Payments and Income Caps for Ex-Presidents
The Presidential Allowance Modernization Act of 2025 shakes up how former presidents get paid after leaving the White House, setting both a fixed annuity and an allowance, but also putting a cap on how much they can rake in based on their other income. It kicks in the day a president leaves office, but there are a few catches.
Cash Rules Everything Around Me?
The core of the bill is pretty straightforward. Instead of the current system, former presidents will get a flat $200,000 annual annuity, paid out monthly. Think of it like a pension. On top of that, there's another $200,000 annual allowance, if Congress funds it (SEC. 2). Both of these amounts will increase each year at the same rate as Social Security benefits, keeping up with inflation (SEC. 2). However, if a former president takes another paid government job (more than a token amount), both the annuity and allowance are paused (SEC. 2).
Show Me the Money (Or Not)
Here's where it gets interesting, and potentially impacts taxpayers. If a former president is making bank outside of their presidential perks – over $400,000 in adjusted gross income, to be exact – their $200,000 allowance starts to shrink (SEC. 2). This $400,000 limit also goes up with the cost of living. For example, if a former president earns $500,000 from book deals and speaking gigs, their allowance would be reduced. To enforce this, former presidents have to hand over their tax return info to the Treasury Secretary, who's supposed to keep it under wraps and only use it to calculate the reduction (SEC. 2). The allowance will not be less than the amount needed to cover increased security costs, as determined by the Administrator of General Services and the Secret Service.
Widows and Widowers Get a Boost
The bill also significantly increases the annual allowance for the surviving spouses of former presidents, bumping it up from $20,000 to $100,000 per year, also adjusted for inflation (SEC. 2). Plus, it extends these benefits to widowers, not just widows, leveling the playing field (SEC. 2).
The Fine Print
It's important to note that this law specifically doesn't mess with any existing laws or funding for the security of former presidents and their families (SEC. 3). Also, all current former presidents and their spouses are exempt from these changes – this is for future presidents (SEC. 4). While the income cap could save taxpayer money, the fixed annuity and increased spousal benefits could potentially increase overall costs. The privacy aspect of handing over tax returns is also something to keep an eye on.