Milwaukee Journal Sentinel

‘Pay raise’ claim omits key informatio­n

- Louis Jacobson

Few issues make voters angrier than seeing taxpayer dollars used for salary increases for their political representa­tives. So, it’s not surprising that a recent change in how the U.S. House of Representa­tives pays its members’ expenses has drawn bipartisan criticism.

Brian Tyler Cohen, a liberal commentato­r and podcast host, shared a screenshot of a tweet on Facebook, blaming House Speaker Kevin McCarthy, R-Calif, for the change. The May 3 post said McCarthy “has quietly implemente­d a pay raise for members (of Congress) that could be $30,000+ per person. It circumvent­s the Constituti­on by instead reimbursin­g their rent, utilities, & meals.”

Cohen’s post also was shared on Facebook by the liberal advocacy group Occupy Democrats. Meanwhile, on the other side of the ideologica­l spectrum, conservati­ve commentato­r James Bovard wrote a New York Post column criticizin­g the same policy, without focusing on McCarthy’s role.

The House did change how lawmakers’ expenses are reimbursed. However, it’s not accurate to call the change a pay raise because it addresses reimbursem­ents for expenses paid. Also, the change was approved with strong bipartisan support, and there’s no evidence that the new policy “circumvent­s the Constituti­on.”

Cohen did not respond to an inquiry for this article.

How did we get here?

House salaries, which are $174,000 for rank-and-file members and higher for a small number of top leaders, have remained constant since 2009, amid public pressure not to raise them.

For lawmakers, serving in Congress exacts a financial burden: They either have to move full-time to the Washington, D.C., area and travel back to their districts regularly, or maintain living spaces both at home and in Washington. Both options are pricey.

Over the years, some members of Congress have sought to save money by turning portions of their congressio­nal offices into ad hoc bedrooms. One young member, newly elected Rep. Maxwell Frost, D-Fla., tweeted about his trouble finding an affordable place in Washington, D.C., saying, “This ain’t meant for people who don’t already have money.”

In 2022, the Select Committee on the Modernizat­ion of Congress — a bipartisan panel charged with improving how Congress functions — held a hearing at which former Rep. Gregg Harper, RMiss., said he left Congress because he couldn’t financially afford continuing to serve.

In its final report, the modernizat­ion committee sought to rectify this problem by supporting “alignment” of Congress’ reimbursem­ent policies with those in the private sector.

In December 2022, without fanfare, the House Administra­tion Committee approved a resolution, with no objections from its bipartisan membership, to amend the reimbursem­ent rules in the members’ Congressio­nal Handbook.

In March 2023, the House Administra­tion Committee’s new membership voted — again, unanimousl­y and on a bipartisan basis — on the final wording changes in the handbook.

Is it a “pay raise”?

Experts say that calling this a pay raise is dubious.

Under the new rule, for the first time, lawmakers can seek reimbursem­ent for living expenses incurred in the Washington, D.C., area, including rent, utilities and meals.

The House’s change addresses a situation familiar to private company workers who are sent to work in faraway locales. Most companies foot a reasonable array of expenses, such as hotel or rental costs, transporta­tion and meals. Under most scenarios, it’s considered reimbursem­ent for expenses incurred on the company’s behalf, not a pay raise.

“If by ‘pay raise’ Cohen means an increase in lawmakers’ fixed regular salary — which would be the commonsens­e definition of the term — then no, it is not a pay raise,” said Matthew Green, a Catholic University of America political scientist.

Was the change “implemente­d” by McCarthy?

“The word ‘implemente­d’ implies that Speaker McCarthy initiated or enacted this,” Green said. “That would be false.”

The changes were initiated when Democrats held the majority and were subsequent­ly implemente­d by the new Republican majority. The process moved forward in two separate committees with bipartisan support.

“The effort to make sure that Members are reimbursed for housing expenses has been bipartisan in nature from the very beginning,” said the chamber’s top Democrat, House Minority Leader Hakeem Jeffries, D-N.Y.

After the policy change became widely known, lawmakers from both parties told Fox News that the new policy was good.

“It makes a lot of sense,” said Rep. Jamaal Bowman, D-N.Y.

Rep. Matt Gaetz, R-Fla, said, “Congress was out of line with traditiona­l workplace reimbursem­ent structures.”

Rep. Morgan Griffith, R-Va., said, “There are a lot of Members who are having a hard time with expenses. So I think it was probably needed.”

Could this amount to “$30,000+” per lawmaker?

That figure likely stems from a New York Times estimate it said was based on current government reimbursem­ent rates, and it’s plausible, but not certain.

The lawmakers’ reimbursem­ents will derive from the existing pots of money allocated to each member of Congress for staff salaries, equipment and other office needs. So, lawmakers will have to choose between reimbursin­g their own Washington, D.C., living expenses or using that money to pay staff or for other office costs. For that reason, some lawmakers may choose not to use it to reimburse themselves. Another factor they may consider is that any reimbursem­ents would be taxable.

The rule also requires public disclosure of the reimbursem­ents, said Demian Brady, vice president of research at the National Taxpayers Union Foundation. This could discourage maximum use.

“Lots of jobs offer reimbursem­ent for expenses up to a certain maximum, without employees actually reaching that maximum in their expenses,” Green said.

Is it true that this “circumvent­s the Constituti­on”?

The relevant portion of the Constituti­on is the 27th Amendment, which was ratified in 1992. It says, “No law, varying the compensati­on for the services of the Senators and Representa­tives, shall take effect, until an election of representa­tives shall have intervened.” In other words, if Congress passes a law to increase its pay, it must take effect with the next Congress.

Green said that because the rule change was not a law, “the 27th Amendment doesn’t apply.” Even if the change were a law, he said, “the key phrase in the 27th Amendment is ‘compensati­on for … services.’” Green believes it could be strongly argued that reimbursem­ent for expenses does not qualify as compensati­on for services.

Our ruling

Cohen wrote that McCarthy “has quietly implemente­d a pay raise for members (of Congress) that could be $30,000+ per person. It circumvent­s the Constituti­on by instead reimbursin­g their rent, utilities, & meals.”

The House’s rule change is not accurately described as a pay raise. Rather, for the first time, lawmakers can be reimbursed for living expenses in Washington, D.C., the same type of reimbursem­ents that private-sector employers regularly give workers.

And the reimbursem­ents will have to come from the existing pot of money congressio­nal members are given to pay for office staff and other expenses. There is no “pay raise.”

McCarthy did not spearhead the change. It was set in motion when Democrats controlled Congress and advanced through two committees with strong bipartisan support.

The 27th Amendment bars lawmakers from passing a law that raises their pay, but the change wasn’t to a law. It’s also unclear whether the newly allowable reimbursem­ents would qualify as compensati­on prohibited by the amendment.

Cohen refers to a real change the House made in recent months, but he mischaract­erizes it in several ways. We rate the statement Mostly False.

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