Former Presidents Act (FPA)

The Former Presidents Act (FPA) is a federal law that provides former presidents of the United States a variety of lifetime benefits. First enacted in 1958, the law established a series of presidential retirement benefits, including a lifetime annual pension, allowances for staff and offices, Secret Service protection, travel expenses, and more. These benefits are available to all former presidents except those who have been impeached and removed from office. Congress has made several attempts to amend the FPA over the years, but these efforts have either been reversed or failed to come to fruition in the first place. One of the most notable such attempts came when Congress passed The Presidential Allowance Modernization Act in 2016. Designed to cap the pensions of all former and future former presidents, the act was vetoed by President Barack Obama. A second bill, the Presidential Allowance Modernization Act of 2023, was introduced with the aim of capping post-presidential pensions and expenses. The FPA remains an important law that does much to help former presidents once they have left office.

Background

Prior to the passage of the FPA in 1958, former presidents received no retirement benefits of any kind. While this was of little concern to presidents who were independently wealthy, others often found themselves subsisting on surprisingly meager earnings after leaving office. One former president who found himself in just such a position was Harry S. Truman. Having served as president from 1945 to 1953, Truman’s financial situation changed dramatically once he returned to private life following his loss to Dwight D. Eisenhower in the 1952 presidential election and subsequent exit from office. In the last full year of his presidency, Truman earned more than $100,000. By 1954, his annual income dropped to less than $14,000, most of which came from a modest military pension. While Truman could have used his popularity as a former president to make money—many companies wanted him to sit on corporate boards or hold symbolic positions—Truman balked at the idea of doing anything that might impinge upon the dignity of the office of the presidency. He was also hesitant to accept payment for public speaking engagements. As a result, he found himself in a difficult financial position.

The idea of establishing some sort of presidential pension had been previously discussed in Congress, but no action on the matter was taken by the time Truman left office. The question of whether creating such a pension plan was even necessary was complicated by the fact that Herbert Hoover, the only other living former president at the time, was a millionaire with no need of financial assistance. While Truman was eventually able to make some extra money by selling his memoirs, the commiserate increase in his tax rate still made his financial standing somewhat unstable. As the American public became aware of Truman’s monetary struggles, the government was finally moved to take action. Ultimately, Congress responded by passing the FPA in 1958. Although he declined to comment on the matter, Truman accepted the pension he was granted under the FPA. Meanwhile, Eisenhower would eventually become the first president to enjoy the full range of benefits offered by the law after leaving office.

Overview

The FPA provides a host of retirement benefits for former presidents of the United States and has been in force since 1958. The benefits outlined within the act are available to all former presidents, including one-term presidents and, as established by a 1974 Justice Department ruling, presidents who choose to resign before their term officially expires, including Richard Nixon, who resigned in disgrace following the Watergate Scandal. The only former presidents who are not entitled to all FPA benefits are those presidents who are impeached and removed from office. In such cases, removed presidents automatically forfeit most FPA benefits outside of Secret Service protection.

The most important FPA benefit, and the one for which the act was primarily created in the first place, is a lifetime annual pension. According to the law, this pension is equivalent to the basic annual pay rate afforded to the heads of various executive branch departments. Congress determines the exact amount of the presidential pension each year. In 2024, the pension rate was set at $246,424 per year. Former presidents begin receiving their pension as soon as their final term expires, and the pension continues until their death. In addition, the surviving spouses of deceased former presidents receive a $20,000 annual pension and free postage for the rest of their lives.

The FPA also provides former presidents with transition funding for the first seven months of their post-presidency lives. This funding is meant to help former presidents negotiate their shift back to private life. As outlined by the Presidential Transition Act (PTA), transition funding can be used to cover expenses related to acquiring office space, hiring staff, and more.

Another provision of the FPA offers former presidents staff and office allowances. Under the FPA, former presidents receive up to $150,000 per year in funds to be used for maintaining an office and paying staff. These allowances may decrease in later years and are authorized by Congress through the budget of the General Services Administration (GSA) and can be used to pay for office space anywhere in the United States.

Some travel expenses are also covered under the FPA. This applies specifically in cases of travel related to a former president’s duties as an official government representative. The exact amount paid out for travel costs is determined by the GSA.

One of the most visible FPA benefits is lifetime Secret Service protection. Since the enactment of the Former Presidents Protection Act of 2012, former presidents and their spouses have been entitled to lifetime Secret Service protection. This act reversed a 1994 law that ended Secret Service protection for former presidents ten years after they left office.

Finally, the FPA also provides benefits related to medical expenses and state funerals. Under the act, former presidents and their immediate family members are entitled to seek treatment at military hospitals. When a former president passes away, the FPA guarantees them the right to have a state funeral with full military honors. The details of these services are determined by the late former president’s family.

Bibliography

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Thorndike, Joseph. “It’s Good to Be the (Ex) President, But It Wasn’t Always.” Forbes, 23 Apr. 2014, www.forbes.com/sites/taxanalysts/2014/04/23/its-good-to-be-the-ex-president-but-it-wasnt-always/?sh=35bf987910af. Accessed 7 Jan. 2025.

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