U.S. lawmakers’ compensation has evolved significantly from the initial $6 per day in 1789. However, their annual salary has remained stagnant since 2009. Let’s delve into the details of how much senators make, factors influencing their pay, and the broader context of their financial status.
The current annual salary for a U.S. Senator, as well as members of the U.S. House of Representatives, is $174,000. This figure, established in 2009, represents a $4,700 increase from 2008 but has not been adjusted since then.
This income is more than double the median household income, which currently stands at $82,207, according to MotioResearch. In comparison, majority and minority leaders in both chambers earn $193,400, while the Speaker of the House receives an annual salary of $223,500.
The Process of Setting Congressional Salaries
Unlike many professions, Congress holds direct authority over its members’ salaries. According to Article I, Section 6 of the U.S. Constitution, any adjustments to member compensation must be “ascertained by Law.” This provision ensures that changes in salary require legislative action.
“A change in salary must be done via a bill or joint resolution, both of which are presented to the President for a signature. Thus, the President could veto a bill changing Members’ salaries if he thought it inappropriate,” explains a 2019 report from the Congressional Institute. This system of checks and balances prevents lawmakers from arbitrarily increasing their own pay.
Perhaps the most significant constraint on inflated congressional salaries is public opinion. Voters are generally skeptical of pay raises for senators, making it politically risky for members to support such measures.
“Members know constituents are skeptical of congressional pay increases, so they hate voting for them,” the Congressional Institute noted.
Cost of Living Adjustments and Past Attempts at Pay Raises
Despite public scrutiny, Congress has historically sought ways to maintain competitive compensation. In early 1989, a proposal to increase member pay by 51% faced public backlash. Instead, a more modest 10% raise was enacted through The Ethics Reform Act of 1989, signed into law by President George Bush on Nov. 30, 1989.
CQ Almanac described it as “the most sweeping rewrite of the congressional code of conduct in 12 years.” The legislation raised salaries for congressional members to $125,000 in 1991, a nearly 40% increase from the $89,500 salary set in 1987.
The ethics reform also introduced an annual automatic cost-of-living adjustment (COLA) for members of Congress, based on the previous year’s Employment Cost Index. However, Congress has declined these increases since 2009, likely to avoid voter disapproval.
If Congress had accepted these adjustments, their annual salary would have reached $208,000 in 2023, according to CBS News. Conversely, a report by the Congressional Research Service estimates that senators are effectively earning 29% less than in 2009 due to inflation.
Other Forms of Compensation and Wealth
Senators can also receive compensation through subsidies. In late 2022, Congress passed a provision allowing lawmakers to claim reimbursements for gas, food, and lodging while conducting official business in Washington. The New York Times reported that this is equivalent to a $34,000 tax-free pay raise.
According to Investopedia, most senators accumulated their wealth prior to joining Congress. A 2019 financial disclosure revealed that half of the members of Congress were millionaires, according to Open Secrets. The Ethics in Government Act of 1978 mandates that senators disclose their financial assets annually.
Quiver Quantitative identifies the wealthiest senators as Sen. Rick Scott (R-FL), with an estimated net worth of $548 million; Sen. Mark Warner (D-VA) at $246 million; and Sen. Mitt Romney (R-UT) at $235 million.
Conclusion
While the official salary of U.S. senators has remained fixed at $174,000 since 2009, various factors influence their overall financial status. These include potential cost-of-living adjustments, additional subsidies, and personal wealth accumulated before entering Congress. The process of setting congressional salaries is subject to constitutional checks and balances, as well as public opinion, making it a complex and closely watched issue.
