Taking Liberties
October 29, 2009 3:53 PM

Obama May Not Be Able To Keep $1.4M Nobel Cash

(AP Photo/Torbjorn Gronning)
President Obama said through his spokesman earlier this month that he intends to donate his $1.4 million Nobel Peace Prize check to his favorite charities.

But there may be a few obstacles to his plan. The most obvious is that the Peace Prize is closely linked to a foreign government -- all members of the Nobel committee are current or former Norwegian government officials -- and the U.S. Constitution limits gifts to government officials from any "foreign state." The purpose may have been to limit bribes, true, but the Constitution nevertheless fails to include an exception for Nobel Peace Prizes. And, besides, does anyone think this year's award was not trying to influence U.S. foreign policy at least a tiny bit?

Hmm.

The full text of the relevant portion of the Constitution says: "No person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state."

Which is why three Republican House of Representatives members sent a letter to the president this week reminding him that, no matter what his spokesman said, Congress must consent. The letter from Ginny Brown-Waite (Fla.), Cliff Stearns (Fla.), and Ron Paul (Tex.) says:
Obtaining permission from Congress should be straightforward. President Theodore Roosevelt created a committee, including the Chief Justice of the Supreme Court and several Cabinet Secretaries, to hold (his Nobel Peace Prize) money in trust until after he left office. He then sought the consent of Congress to disburse the money to various charities. President Roosevelt rightfully complied with the requirements set forth in the Constitution and acted in a manner becoming of the office of the President of the United States. I trust you will do the same.

David Kopel, an attorney affiliated with Colorado's Independence Institute, points out that Congress has enacted a law governing gifts from foreign governments (which, if it clearly authorizes Obama to receive the Nobel cash, would presumably represent "the consent of Congress" through a pre-approval mechanism).

That law says an employee of the U.S. government, explicitly including the president and vice president, may not "accept a gift or decoration" from a foreign government, "other than in accordance with the provisions of subsections (c) and (d)."

Subsection (c) of the law says that that a gift "of more than minimal value is deemed to have been accepted on behalf of the United States and, upon acceptance, shall become the property of the United States." Subsection (d) isn't helpful; it refers to accepting a "decoration tendered in recognition of active field service in time of combat operations or awarded for other outstanding or unusually meritorious performance." Because a million-dollar check isn't exactly a "decoration," subsection (d) doesn't apply.

Translation: Under current federal law, it sure looks like the president is prohibited from endowing a Barack Obama Presidential Library or doing whatever else he might like with the money. Subsection (e) says that gifts from foreign governments must be either "returned to the donor" or "forwarded to the administrator of General Services for transfer, donation, or other disposal."

An op-ed earlier this month in the Washington Post made an even stronger argument: that merely accepting the Nobel prize is "unconstitutional." That seems to be a weak argument because of the statutory pre-approval process, as Yale constitutional law professor Jack Balkin points out. Balkin says "the money for such a gift is accepted on behalf of the United States."

Just to make matters more complicated, there's a set of regulations saying that a federal employee can accept a cash award "upon a written determination by an agency ethics official that the award is made as part of an established program of recognition," and lists the Nobel Prize for Medicine as an example. On the other hand, the Nobel Prize for Medicine has no connection with the Norwegian Parliament, and that section of the regulations does not deal with foreign gifts.

Of course, the White House attorneys could simply argue that even though the Nobel Prize was selected by Norwegian government officials, the money came from elsewhere, and thus the constitutional prohibition (and thus the statute and regulations) simply don't apply.

The counter-argument is that the chairman of the Nobel Peace committee is the president of the Norwegian Parliament (the Storting), and every other member is a current or former member of the Storting (and typically hold or held other senior posts in the Norwegian government). And, continuing that logic, the selection of the recipient matters as much or more than where the money comes from.

When Woodrow Wilson won the Nobel Peace Prize in 1919, the U.S. minister, Albert Schmedeman, explicitly thanked the Norwegian government on behalf of the president. Schmedeman said: "Let me assure you, members of the Norwegian Storting, that words fail to convey the deep emotion which stirs within me at this time, when it falls within my province to receive this testimonial on behalf of the President of the United States of America. No more fitting word of appreciation could be voiced than that contained in the President's message, in which he acknowledges the great honor that has been conferred upon him by the Nobel Peace Committee of the Storting."

Based on what the White House has told Politico.com, they've chosen to argue that that even though the Nobel committee is a creature of the Norwegian government, the prize doesn't qualify as coming from a "foreign state."

But that aspect of the prize hasn't changed since Teddy Roosevelt received it in 1906. If the 26th president was willing to ask Congress for approval to accept the prize and dispense it to charities after he left office, why shouldn't Barack Obama follow suit? It's not like the U.S. Congress is going to say no.

Declan McCullagh is a correspondent for CBSNews.com. He can be reached at declan@cbsnews.com and is on Twitter as declanm. You can bookmark the Taking Liberties site here, or subscribe to the RSS feed.
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nobel prize ,
barack obama
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Add a Comment See all 38 Comments
by HopeforAmerica November 2, 2009 3:29 AM EST
Congress should amend the constitution so the President may donate the money. I see no harm in this.
Reply to this comment
by steve001968 November 1, 2009 10:25 AM EST
Here's a thought: He can donate it to help pay the national debt that he and congress are expanding at a new record rate. It's closing on 12T that has been flushed down the toilet as I write this.
Reply to this comment
by steve001968 November 1, 2009 10:23 AM EST
Obviously it's a gift from a foreign government, or governments and he shouldn't be able to keep it. Of course Obama, like most other politicians doesn't think the rules that apply to mere mortals apply to him. As far as the Constitution, that's just a piece of paper he would blow his nose on if he could. As far as the peace prize itself it's been nothing but a joke since murdering terrorist pig Yasser Arafat was handed one so it has no veracity behind it anyway. Next year they will probably give one Posthumously to Idi Amin.
Reply to this comment
by October 31, 2009 12:23 PM EDT
Apparently Obama also believes the Constitution is just a g-d d-mned piece of paper, too.
Reply to this comment
by ianlou October 30, 2009 5:01 PM EDT
by JV1970 October 29, 2009 11:37 PM EDT
I don't think he should accept the money anyway! He didn't earn it! He was only in office two weeks when the deadline for the nominations closed for the prize. Exactly what in those two weeks did he do to earn it? Can someone please tell me?
++++++++++++++++++++++++++++++++++++++

The current belief is the Nobel Committee gave the award to Obama as an expression of the anticipated improvement in the World due to the election of Obama AND the retirement of G.W. Bush.

Many in the world view this award as an insult aimed at the Bush Administration. I say Bravo!!!!
Reply to this comment
by JV1970 November 3, 2009 2:36 AM EST
I have always been under the impression that the Nobel prize is not given for what a person is ANTICIPATED to do. I've always thought that it is given for what a person has done. I guess I was wrong. However, if it's given for what a person is anticipated to do, what if they don't? What if they don't do or accomplish what they were anticipated to do? Do you think it's right that they should be allowed to keep it or donate it to charity? I don't! If Obama doesn't accomplish what he promised to do or what they anticipated he would do, he should have to repay every penny!
by ianlou October 30, 2009 2:11 PM EDT
There's an easy solution.
Obama refuses the cash and suggest to the Nobel comittee where they might want to donate it instead.
Reply to this comment
by ToolMangler1 October 30, 2009 4:25 PM EDT
He has already said the money would go to charity. You repugs will do anything to hurt Obama,.....
by endurorob_5 October 30, 2009 10:09 AM EDT
Like the articel says this was just a blatent attempt to influence U.S. foreign policy. The sad part is they probably didn't need to waste the prize to influence Obama. He seems to be all about the European way.
Reply to this comment
by Biggest_Rick October 30, 2009 11:01 AM EDT
The European way = Cut, run, and surrender!
by ianlou October 30, 2009 2:14 PM EDT
by Biggest_Rick October 30, 2009 11:01 AM EDT
The European way = Cut, run, and surrender!
+++++++++++++++++++++++++++++++++++++++++++++
The American way:
The Bombing and shooting will continue until you Love the American Way.
by chitown639 October 29, 2009 11:56 PM EDT
Obama should donate the $1.4 million Nobel cash to ACORN....LMAO!!!

Glen Beck and Limbuagh's fatheads would probably both explode!!!!!!
Reply to this comment
by cidaia October 30, 2009 1:10 AM EDT
are you kidding? glen beck and limbaugh would dance the snoopy dance in sheer joy.
by WAY2GOOBAMA October 30, 2009 9:32 AM EDT
JV1970, JUST AS BUSH SHOULD HAVE WHEN HE WAS SELECTED BY THE US SUPREME COURT. HE STOLE THE ELECTION.
by JV1970 October 29, 2009 11:37 PM EDT
I don't think he should accept the money anyway! He didn't earn it! He was only in office two weeks when the deadline for the nominations closed for the prize. Exactly what in those two weeks did he do to earn it? Can someone please tell me?
Reply to this comment
by ianlou October 30, 2009 4:50 PM EDT
by JV1970 October 29, 2009 11:37 PM EDT
I don't think he should accept the money anyway! He didn't earn it! He was only in office two weeks when the deadline for the nominations closed for the prize. Exactly what in those two weeks did he do to earn it? Can someone please tell me?
********************************
A list of hundreds of nominees were submitted two weeks after Obama was elected. someone threw his name in the hat just in case he achieve something prize winning when the decision time arrived.

This is a prize or award that is given by others. Obama didn't ask for it, and he addmitted his suprise when receiving it.

Lush Limpstick has received all kinds of awards, millions of Americans don't believe he deserves any awards. Does that mean Rush should have refused acceptence of these awards?

Go whine somewhere else.
by geewheeez October 29, 2009 11:19 PM EDT
Oh gosh...we must be the laughing stock of the world. I do not know any country that would stop its President or leaders from accepting a Nobel Peace prize. I guess there is always a first.
Reply to this comment
by cidaia October 30, 2009 1:10 AM EDT
It's a thing called "ethics". It rules that you can't accept gifts or prizes when doing so creates a conflict of interests. I assure you: other countries have indeed heard of this concept.
by csuresh October 29, 2009 6:20 PM EDT
It does not matter if 3 Republican congressmen have made an issue of this. The media should be smart enough to figure out what is a real issue and what is a phony issue. By the way would you expect anything different from Republicans when it comes to Obama. They just cannot get over the fact that an African American is in the whitehouse instead of an old white guy.
Reply to this comment
by stn_sage October 29, 2009 6:07 PM EDT
Since when has Obama OR Congress started worrying about the law and whether or not they are operating within it? That's a laugh!
Reply to this comment
by stuart-johns2 October 29, 2009 9:10 PM EDT
Why do you say that? What laws has Obama broken?
by tonyatq October 29, 2009 10:42 PM EDT
The same time Bush did.
by HopeforAmerica November 2, 2009 3:31 AM EST
What a bunch of crap. Obama has NOT Broken any Laws!!
by dakotaclark October 29, 2009 5:55 PM EDT
Hmmm...

The Nobel Prize is not a decoration or a gift. Rather, it is an award, albeit more important than an Emmy or an Oscar. As such, it should be exempt.

This is just more sour grapes from Republicans who still cannot believe that Mr. Obama won the election and now is serving as POTUS.
Reply to this comment
by declanm-2009 October 29, 2009 6:36 PM EDT
A "gift" is defined in federal law as "a tangible or intangible present," which the Nobel cash certainly is. The Constitution uses the same "present" language.

If you don't like the Constitution, change it, but I think saying "Oh, this portion can be safely ignored because it's inconvenient" can be a dangerous thing to do.
by ToolMangler1 October 29, 2009 7:10 PM EDT
I agree 100%
by imbalayo October 29, 2009 5:10 PM EDT
HELLO! He already said he was giving it all to cahrity. CBS is sounding more like FOX!
Reply to this comment
by lmartink October 29, 2009 5:50 PM EDT
But if he cannot keep the money, then how about all the Senators and Representatives who are on the take from big corporations and Health Insurance Companies?
by ToolMangler1 October 29, 2009 7:12 PM EDT
by lmartink October 29, 2009 5:50 PM EDT



Those are not public awards, they are under the counter bribes and pay-offs.
by Surelyoujest October 29, 2009 4:56 PM EDT
Good! Put it towards the dept. It's a drop of water in the ocean, but it's a drop in the right direction.
Reply to this comment
by jxknowles October 29, 2009 5:24 PM EDT
Revoke all tax cuts enacted by George Bush and the Federal Stimulus package. That will reduce the deficit by about a half trillion dollars.
by AOCGUY October 29, 2009 4:54 PM EDT
It may violate the Nobel Rules but why can't Obama just notify the Noebel Committee what charities he wishes to contribute and have the Committee send the money there? That way he hasn't taken any funds from anyone.
Reply to this comment
by stuart-johns2 October 29, 2009 5:07 PM EDT
Exactly. I remember when this first broke that Obama had won the prize. He said then that all the money would be donated to a charity. Obama does'nt need the money nor did he ever intend to keep it.

I have to wonder where the media comes up with all these stories lately. Geeesh. What is their intent - to see people argue about stupid things?
by PVperson2 October 29, 2009 5:23 PM EDT
Don't blame the media, blame the 3 republican congressmen that have made this an issue.
by declanm-2009 October 29, 2009 6:40 PM EDT
A charity such as a Barack Obama Presidential Library, perhaps?

Seems like letting the funds go to debt reduction, the default under existing law, would be another perfectly good (and perhaps even better) use of the cash.
by velma179 October 30, 2009 12:13 PM EDT
by declanm-2009 October 29, 2009 6:40 PM EDT
A charity such as a Barack Obama Presidential Library, perhaps?

Seems like letting the funds go to debt reduction, the default under existing law, would be another perfectly good (and perhaps even better) use of the cash.

***********

#1) A Presidential Library isn't a charity.

#2) The laws in question speak of ACCEPTING the gift.

If it is agreed Obama CAN accept the money legally, I doubt he will give it to the US Treasury as debt reduction -- but he could.

Since he said -- before this issue was addressed -- he accepted the award on behalf of Americans and he would give the money to charity --
I would lay odds the money goes to veterans or families of fallen soldiers or such as that.

That IS on behalf of The American People and clearly the causes are supported by President and Mrs. Obama as well as most Americans.
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Declan McCullagh's iconoclastic take on politics, the economy, and individual rights. (Iconoclast: From Medieval Latin "iconoclastes," and from Middle Greek "eikonoklast's," meaning image destroyer.) Sample topics: economy, politics, interviews, free speech, property rights, gun rights, lessons in economics, individual rights, interviews, technology, features.

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