Policy on Congressional Salary Cap Based on State Median Income

Policy on Congressional Salary Cap Based on State Median Income

Purpose:
This policy establishes a fair and transparent guideline for the salaries of U.S. government representatives, ensuring that their compensation aligns with the economic conditions of the constituents they serve. By tying congressional salaries to the median household income of each representative’s state, this policy promotes accountability, fairness, and alignment with public service principles.

Policy Statement:
U.S. Senators and Representatives shall not earn a salary greater than the median household income of the state they represent. This approach aligns representatives’ financial interests with those of their constituents and supports equitable public service.

Scope:
This policy applies to all members of the United States Congress, including Senators and Representatives, and applies to both base salaries and regular compensation. This policy does not apply to allowances or reimbursements for travel, office expenses, or other necessary costs incurred while fulfilling official duties, which will continue to be provided according to federal guidelines.

Policy Details:

1.	Salary Cap Determination
•	Congressional salaries shall be capped annually at an amount no greater than the median household income of the representative’s state as determined by the latest data from the U.S. Census Bureau.
•	This cap will be reassessed every fiscal year, with any salary adjustments taking effect at the beginning of the subsequent fiscal year.
3.	Compensation Adjustments
•	If the median household income of a representative’s state decreases, the representative’s salary will be adjusted downward accordingly at the beginning of the next fiscal year.
•	If the median household income increases, the representative’s salary may increase proportionally, up to but not exceeding the median household income of their state.
4.	Transparency and Reporting
•	Each representative’s adjusted salary shall be publicly reported and available on official government websites for transparency.
•	An annual report will be provided to Congress, detailing the median household incomes and corresponding representative salaries.
5.	Exemptions and Allowances
•	Representatives may still receive cost-of-living allowances, travel reimbursements, and funds for office expenses, as these are essential for the effective performance of their duties.
•	This policy does not apply to any income earned independently outside their role as a public official, provided such income complies with applicable ethics and conflict-of-interest regulations.
6.	Oversight and Enforcement
•	The Office of Congressional Ethics (OCE) shall be responsible for oversight and compliance with this policy. Representatives found to be circumventing or violating this policy shall be subject to disciplinary actions, which may include salary withholding, fines, or other measures as deemed appropriate by the OCE.

Rationale:
This policy ensures that representatives are economically tied to the well-being of their constituents and reflects the income level of the communities they serve. It promotes trust, reduces financial disparities between elected officials and the public, and fosters a stronger alignment with the interests of the American people.

Effective Date:
This policy will go into effect on [EFFECTIVE DATE TBD] and will apply to all U.S. government representatives serving on or after this date.

7 Likes

I love this.

I would set the salary multiple on the increase in disposable income for the median household. (Real money)

Retirement would also be weighted similarly.

Increase in wealth due to investments should be in a separate bill.

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I was going to propose a similar policy. When reviewing the Congressional Salaries and Allowances: In Brief from https://crsreports.congress.gov RL30064
June 2024, I discovered that the yearly tax payer cost in congressional salary (using a “freshman” congressman salary, plus leaders) to the American people is at least $93.5 million/ for FY2024.

Additionally, each member of congress is allotted monies for the “Members’ Representational Allowance (MRA): Supporting Personnel, Office Expenses, Travel to the District, and Mail for Members of the House” which on average, for FY2024, is $1,928,000. The budget for FY 2024 for this expense was $810 million.

Furthermore, each congressional member is allowed $40,000 yearly for furniture and furnishing.

Just these 3 categories amount to an expense just shy of $1 billion for congressional salaries and allowances at approximately $923 million. This doesn’t include other employment benefits (retirement plan, medical, dental, vision).

Additionally, congressional members are allowed to earn up to $31,000 in “outside income” which isn’t tax payer funded but worthing of noting because…

According to an article from Forbesadvisor.com, from The U.S. Bureau of Labor Statistics the median nationwide salary for the first quarter of 2024 is $59,428.
Meaning that while in office, a member of congress can still earn about 50% of the nationwide median salary “on the side” while receiving a tax-payer funded salary that represents higher than the top 10% of salary earners in the United States.

If the MRA was decreased by even just 20%, to $675 million, Congressional members’ salaries were decreased to that of the national median salary, at approximately $60,000/ per year and the furniture allotment to $10,000 per year (which can be rolled over from year to year for the sole purpose of updating equipment, furnishing, etc) the amount drops from a minimum of $923 million to just over $700 million.

Not only is this saving Americans at least $200 million each year, but it improves the ethics of the Salary and Allowance guidelines.