Congress passed the $107 billion Postal Service Reform Act with considerable bipartisan support Tuesday, ending the United States Postal Service’s (USPS) crippling prefunding requirement and ensuring the continuation of universal six-day delivery.
H.R. 3076 was introduced through the Senate Homeland Security and Governmental Affairs Committee (HSGAC) by Chairman Gary Peters (D-MI) and Ranking Member Rob Portman (R-OH) in an effort to meet the needs of the USPS’s customers while also fulfilling promises to each of the four postal unions.
After successfully passing in the House with a vote of 342-92, the bill cleared the Senate Tuesday 79-19.
“Portman said the bill is not a bailout, and no new funding is going to the agency,” CBS News reported.
In a 79-19 vote, the Senate passed the Postal Service Reform Act! “This is a monumental victory for letter carriers and all Americans who depend on the Postal Service for affordable and high-quality universal service,” NALC President Fredric Rolando said. https://t.co/X0N8Rb4hkD pic.twitter.com/ARGEmjGkAR
— Letter Carriers (@NALC_National) March 8, 2022
Peters explained that the bill which was was co-sponsored by 14 Republicans and 14 Democrats was crafted to address the main issues that had plagued the USPS for 15 years now. Chief among them was the prefunding mandate passed in 2006 through the Postal Accountability and Enhancement Act (PAEA).
The PAEA made the USPS the only organization throughout all government and private-sector industries that was required to fund all retiree health benefits in advance. As such, the USPS had remained perpetually incapable of generating revenue s as they struggled to surpass the billions of dollars worth of debt the PAEA forced on them.
My bipartisan postal reform legislation will remove unfair & burdensome financial requirements—which have hindered @USPS for 15 years—and help provide long-term reliable service to Michiganders and the American people. pic.twitter.com/Df2vpmtqwM
— Senator Gary Peters (@SenGaryPeters) March 8, 2022
Fredric Rolando, President of the National Association of Letter Carriers (NALC), issued a statement on the passage of the bill. “This is a monumental victory for letter carriers and all Americans who depend on the Postal Service for affordable and high quality universal service,” Rolando said referring to the USPS’s charge of delivering to every address in the nation.
“I want to congratulate and thank all the NALC members who lobbied their members of Congress to win passage in the Senate and the House,” Rolando went on. “Thanks to your support, dedication and action, bipartisan postal reform, that was 12 years in the making, has finally passed in both chambers.”
In addition to eliminating the prefunding mandate through a Medicare solution for retirees, the bill is set to codify six-day delivery into federal law. Previously, this was a matter that needed to be determined annually and USPS employees and customers were regularly at risk of a reduction in service to five days.
Members from both sides of the aisle issued statements on the success of the bipartisan legislation. Sen. Steve Daines (R-MT) spoke to the “USPS Fairness Act” that he introduced into H.R. 3076 with Sen. Brian Schatz (D-HI).
This will be the most significant postal reform we’ve had in over a decade. Part of the package included my bipartisan bill, the “USPS Fairness Act” with @SenBrianSchatz.
— Steve Daines (@SteveDaines) March 9, 2022
Sen. Dick Durbin (D-IL) took a moment to signal that Congress could still act on behalf of the American people in a bipartisan effort.
This bill also reaffirms that the Senate can work across the aisle to deliver for the American people and our postal workers. I’m eager to see this bill signed by President Biden, ushering in new support for the postal workers who provide a vital service.
— Senator Dick Durbin (@SenatorDurbin) March 9, 2022
Of course, Portman also issued a statement on the bill’s capacity to “ensure self-sustaining, high-quality postal service for all Americans for a long time to come.”
Tonight’s passage of the bipartisan Postal Service Reform Act is a huge win for @USPS and will ensure self-sustaining, high-quality postal service for all Americans for a long time to come. https://t.co/QRZKa4g0tj
— Rob Portman (@senrobportman) March 9, 2022
However, the prefunding mandate was not the only cost burden preventing the USPS from being self-sustaining. An Office of the Inspector General (OIG) investigation had revealed in October 2016 that there were nearly one hundred studies commissioned by the USPS meant to improve operations with no system to track their results.
A measure on transparency and accountability has been included in the act requiring quarterly reports to “analyze costs, revenues, rates, and quality of service for each agreement…to demonstrate compliance with the requirements.”
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Native of Brooklyn, NY, Kevin Haggerty is a graduate of Hunter College where he studied Cultural Anthropology and Geography. An avid reader and truth seeker, he currently resides in Texas with his wife and their dog and, when he isn't researching current events and their impacts, you'll find him spending time with friends and family or working on his next novel.
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