Biden’s Gold-Plated Retirement Package Shows It’s Time to End Excessive Perks
When President Joe Biden leaves the White House on Jan. 20, he will be entitled to an annual presidential pension equivalent to a sitting cabinet secretary’s salary: $246,400.
That’s already generous but, thanks to a quirk in the law, taxpayers will be on the hook for even more. Because of his 36 years in the U.S. Senate and eight years as vice president, Biden will also receive a congressional pension worth $166,374 per year. Biden’s ability to double-dip highlights how pensions once designed to provide retired elected officials with financial security now far exceed what is necessary to achieve that goal.
Most former presidents enjoy significant wealth, but none have this extraordinary arrangement — the total $413,000 annual pension exceeds even a sitting president’s salary of $400,000. Thankfully, Senator Joni Ernst has introduced legislation to reform these excessive perks and bring much-needed fiscal responsibility to the system.
The federal government’s support for former presidents is rooted in the Former Presidents Act (FPA) of 1958, which was originally designed to prevent financial hardship for former commanders-in-chief. The FPA was passed after President Truman reportedly faced financial struggles upon leaving office — though it later turned out that Truman was in better financial shape than he let on at the time. Despite this, pension benefits for retired presidents have grown increasingly generous, even as modern presidents have amassed substantial personal wealth after leaving office.
Consider the net worths of recent former presidents: Donald Trump, who is returning to office, is estimated to be worth $2 billion, while Barack Obama and George W. Bush each hold assets in the tens of millions. Biden, heading into retirement, has an estimated net worth of $9 million.
Despite this significant wealth, taxpayers continue to cover generous pensions, as well as the cost of perks such as office rent, expenses, supplies, and staff salaries — expenses that collectively amount to millions of dollars annually. For example, Bill Clinton’s New York City office costs $661,000 per year, a figure that exceeds the rent many Americans will pay in a lifetime.
Additionally, the colocation of these offices with the presidents’ private foundations raises questions about blurred lines between public and private spending. Taxpayers deserve better accountability and transparency in how their money is used to support former presidents, especially when these individuals are already financially well-positioned.
Ernst’s Presidential Allowance Modernization Act would address these excessive costs and bring much-needed accountability to post-presidency benefits. This reform would cap taxpayer-funded pensions for former presidents at $200,000 annually (indexed to inflation) and limit office expenses, staff salaries, and other perks to $200,000 per year. Additionally, the bill includes a provision that reduces these benefits dollar-for-dollar for any income a former president earns above $400,000 annually. This ensures that wealthy former presidents will no longer receive taxpayer subsidies that they don’t need.
The Presidential Allowance Modernization Act isn’t a new idea. A version of the bill passed with bipartisan support in 2016 but was vetoed by then-President Obama just before the end of his final year in office. At the time, the national debt stood at $19.6 trillion. Today, with the debt exceeding $36 trillion, the case for reform is even more urgent.
With Congress entering a lame-duck session and Biden’s departure imminent, lawmakers have a unique opportunity to act. Reducing the costly perks provided to former presidents is about more than just saving money — it’s about fairness and transparency. Taxpayers should not be expected to subsidize individuals who are already financially secure, particularly as the national debt continues to climb. By passing Ernst’s Presidential Allowance Modernization Act, Congress can establish a fairer system that prioritizes fiscal discipline, restores public trust, and ensures taxpayer money is used responsibly.
Demian Brady is Vice President of Research at the National Taxpayers Union Foundation.
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