The office of the President of the United States is arguably the most powerful and demanding job in the world. Leading a nation, shaping global policy, and carrying the weight of immense responsibility – it’s a role unlike any other. As the upcoming presidential election in 2024 approaches, and discussions around potential candidates like Kamala Harris and Donald Trump intensify, a common question arises: How Much Does The President Make?
Despite the immense power and responsibility, the US president’s salary might be surprisingly modest compared to CEOs of major corporations or even top-tier athletes. For over two decades, the presidential salary has remained unchanged. So, what exactly is the compensation package for the leader of the free world?
The Current Presidential Salary and Benefits
According to Title 3 of the U.S. Code, the President of the United States earns an annual salary of $400,000. This figure is paid monthly and has been in place since 2001. While $400,000 is a substantial income, it’s important to note that this base salary hasn’t been adjusted for inflation in over 20 years.
Beyond the base salary, the president also receives several allowances to support the execution of their duties. These include:
- $50,000 non-taxable expense allowance: This fund is intended to cover expenses related to the president’s official duties.
- $100,000 travel account: Essential for both domestic and international travel, this account facilitates the president’s extensive travel schedule.
- $19,000 entertainment budget: This allowance is allocated for official entertainment purposes, such as hosting dignitaries and state dinners.
It’s also crucial to remember the non-monetary benefits that come with the presidency. Perhaps the most significant is housing: the President resides in the White House, a fully staffed and maintained mansion at 1600 Pennsylvania Avenue in Washington, D.C. This residence is provided at no cost to the president and their family.
A Look at Presidential Pay Through History
While $400,000 may seem like a significant sum, examining the historical context of presidential salaries reveals an interesting trend. When adjusted for inflation, the presidential salary was once considerably more valuable.
According to historical data from the University of Michigan and Officialdata.org, here’s how presidential pay has evolved over time, with inflation-adjusted values in parentheses:
- 1789: $25,000 ($895,741 in today’s dollars)
- 1873: $50,000 ($1.3 million in today’s dollars)
- 1909: $75,000 ($2.6 million in today’s dollars)
- 1949: $100,000 (plus $50,000 taxable expense account) ($1.3 million in today’s dollars)
- 1969: $200,000 (plus $50,000 taxable expense account) ($1.7 million in today’s dollars)
These figures demonstrate that in real terms, the presidential salary has decreased significantly over the past century. A 1999 congressional hearing highlighted this point, noting that while private sector CEO compensation had skyrocketed, the president’s salary had stagnated for decades. Government reform expert Paul C. Light even testified in favor of a pay raise, arguing it would signal the value placed on the office of the chief executive.
Presidential Income Beyond the White House
While the presidential salary is fixed, presidents often have significant earning potential after leaving office. Since 1958, former presidents have been entitled to an annual pension, currently exceeding $200,000. The Former Presidents Act of 1958 also provides for office space and travel expenses for former presidents.
However, the most substantial income for many former presidents comes from other avenues. Memoirs, speaking engagements, and media deals can generate millions of dollars. Ulysses S. Grant pioneered the presidential memoir, and virtually every modern president since has followed suit, leveraging their experiences into lucrative book deals. As Barbara Perry from the Miller Center at the University of Virginia notes, these post-presidency endeavors are “where a lot of money comes from.”
In conclusion, while the annual salary of the President of the United States is $400,000, it’s just one part of the overall compensation and financial picture. When considering historical context and post-presidency earning potential, a more complete understanding of presidential finances emerges. The question of how much does the president make is not just about the base salary, but also about the benefits, historical value, and long-term financial prospects associated with this unique and demanding role.
