Who Funds The Presidential Transition?

Every four years Americans determine who is going to sit in the White House. And after the election is decided, there is peaceful and orderly transition of power; this transition period takes about two months. What does the transition team do? And who funds this transition process?

The primary goal of the transition team is to develop a blueprint for translating campaign promises into action. This means develop a list of Cabinet and other senior appointees to carry out the blueprint. Develop the appointees and managers into an effective team.

1963 Presidential Transition Act
Funding for the transition--for both the incoming and outgoing Administrations--is authorized by the 1963 Presidential Transition Act (PTA), as amended. The Act authorizes the General Services Administration (GSA) to provide office space, communications services and money for staff payroll as well as for printing and postage costs.

The PTA grew out of the President's Committee on Campaign Costs. It discovered that the 1952-1953 transition cost more than $200,000. The 1960-1961 transition cost $360,000. Both were paid for by the respective political parties.

In preparation for the 1998 transition, Congress passed the Presidential Transitions Effectiveness Act. It increased federal funding for presidential transitions and required public disclosure of both private contributions and the names of transition personnel. The maximum contribution is $5,000, for any person or organization.

In preparation for the 2000 transition, Congress amended the PTA, authorizing GSA to prepare orientation sessions for the President-elect�s cabinet nominees and for high-level executive branch positions.

The enormity of the transition process reflects the ever-growing bureaucracy that is the federal government. The incoming team makes about 4,000 appointments; a quarter of those must be confirmed by the Senate. That's thousands of people to identify, vet, appoint/confirm.

The last time a transition occurred across political party lines was in 2000, between Clinton and President George Bush. In this election cycle, 77 days separate election day from inauguration day, a luxury compared to 2000. (Remember the election wasn't decided until December.) However, at the senior level, the transition process begins long before election day; it will continue long after inauguration day.

1968-1969 Transition
The Johnson-Nixon transition was the first funded under the 1963 Act, although in 1964 Vice President-elect Hubert Humphrey had incurred about $72,000 in Act-related expenses. In 1965, Nixon raised $1 million in private funds to supplement the $450,000 available to him under the act. Another $450,000 was allocated for the Johnson Administration.

1976-1977 Transition
Congress increased the budget for the 1976-77 transition to $3 million, with $2 million for the incoming Administration. The Carter Administration spent about $1.7 million; the Ford Administration, about $700,000. Neither used private funds; both came in under budget.

1980-1981 Transition
The Carter Administration spent about $860,000 of its allocated $1 million. The Reagan Administration spent about $1.75 million of its allocated $2 million. However, two years later the GAO determined that about $235,000 in transition-related expenses were improperly allocated to general agency budgets.

The Reagan Administration raised about $1.25 million for both pre- and post-election transition activities. No sources or sums were ever revealed to the public. Time reported that there was $1.2 million in private funds used specifically for the transition.

1988-1989 Transition
President Bush moved from the vice presidency to the presidency, becoming the the first incumbent Vice President to be elected President since Martin Van Buren in 1836. He transferred the $250,000 allocated for sitting vice presidential transition to the Federal Election Commission. Bush and Vice President Dan Quayle spent $2.3 million of their $3.5 million PTA allocation. They transferred $1 million to the District of Columbia for inaugural expenses. President Reagan spent about $700,000 of the $1.25 million allocation.

1992-1993 Transition
The outgoing Bush Administration spent $1.15 million of its $1.25 million allocation. The incoming Clinton Administration spent their $3.5 million allocation plus an additional $5 million raised privately. NPR

2000-2001 Transition
In FY2001, Congress authorized $7.1 million for the transition : $1.83 million for the outgoing William Clinton Administration; $4.27 million for the incoming Administration of GeorgeW. Bush; and $1 million for GSA to provide additional services required in recent amendments.

The outgoing Clinton Administration spent $1.8 million in the five-week transition period. The Bush-Cheney Administration had a very short official transition period due to the late determination of the winner of the election. They spent $5 million allocated by PTA as well as another $4.7 million in private funds.

2004-2005 Transition
In FY2005, President Bush requested $7.7 million for the transition and asked that $1 million be allocated to training and budgeting new staff should the President be re-elected. The House concurred but the Senate opposed the measure. There was no need for transition funds.

2008-2009 Transition
In FY2009, President Bush requested $8.52 million to fund the presidential transition. In October 2008, Congress authorized $8.52 million for GSA to carry out the Presidential Transition Act of 1963.

In addition, Congress authorized $8 million for the "Executive Office of the President�Office of Administration�Presidential Transition Administrative Support... to carry out the Presidential Transition Act of 1963." And another $2.682 million for GSA to carry out provisions of the Act related to "Allowances and Office Staff for Former Presidents."

Comparison of Costs
The following table provides a comparison of transition costs. I used the Federal Reserve Bank of Minneapolis CPI Calculator to convert sums to 2008 dollars. Primary source for data: Presidential Transitions, CRS Report for Congress, Updated April 3, 2008