Postal Service Reform Act of 2021

Floor Speech

BREAK IN TRANSCRIPT

Mr. ARMSTRONG. Madam Speaker, we all know the importance of the U.S. Postal Service and its core mission of prompt, reliable, and efficient mail service to all Americans, regardless of where they live.

This is essential in States like North Dakota, where even the most rural postal customers rely on the USPS for the reliable delivery of everything from electric bills to essential medicine.

But for too long, Congress has ignored the substantial problems plaguing the U.S. Postal Service. From declining mail volume to operational inefficiency, the Postal Service has been stuck with a business model that is not suited to meet the needs of the 21st century.

This body has been complicit in allowing the financially independent Postal Service to die a slow death over the last 15 years. In that time, we have seen mail volume collapse by 40 percent; annual losses total more than $90 billion; and the addition of more than 1 million new delivery points every year.

When I was on the floor debating these issues last Congress, I said the Postal Service does not need a short-term bailout; it needs serious reform. This bill begins that process.

H.R. 3076 is complementary to Postmaster General DeJoy's 10-year reform plan and his request to Congress. This bill increases accountability by requiring a public dashboard with national and local service performance data that is routinely updated. It supports the delivery of mail at least 6 days per week. It requires regular reporting to Congress so we can keep on top of the Postal Service's plan and ensure the investment goals, cost savings, and revenue projections are met.

It is more important than ever to support initiatives that place the Postal Service on a path to financial stability and maintain its self- sufficiency. With a current projected insolvency date of 2024, delaying postal reform today will only make future decisions more difficult and more expensive. The status quo is simply not an option.

I appreciate Ranking Member Comer and Chairwoman Maloney coming together on this bipartisan bill to do the hard work of making the Postal Service more reliable and sustainable in the long term, and I urge my colleagues to support this bill.

Mrs. CAROLYN B. MALONEY of New York. Jackson Lee), the distinguished vice chair of the Congressional Progressive Caucus.

Ms. JACKSON LEE. Mr. Speaker, I thank the chair and the ranking member for this amazing legislation.

To my good friend from Oregon, Mr. DeFazio, I remember that bill year after year after year because the post office was given the death penalty. That is what happened in the dark of night.

I worked for the post office. Yes, I remember sorting the mail in those old days. But what I most remember is the 1 million new delivery points every year that the post office adds. While others are making a lot of money, they go to the rural areas.

I also remember the letter carriers, the rural postmasters, and all the hardworking men and women who were coming to us week after week, day after day, and said: We are dying out here, and we need to be able to have our healthcare taken care of.

But guess what? The post office had to prepay it. No one else had ever had to do that. It was one of the highest liabilities. Along with that, they were required to fund their pension liabilities at a much higher level than the rest of the Federal Government.

To conserve cash, they hadn't been paying since 2012. Can you imagine, they stopped paying their bills since 2012 because they didn't have any money?

By more closely integrating Medicare, USPS estimates it can save $22.6 billion over 10 years. What a smart thing to do.

Then, of course, the Postal Service Reform Act would eliminate the requirement of the prepaid retirement. And, then, it would require USPS to develop a public-facing online dashboard.

Again, the idea is to save the post office for the American people, save it for the workers, and save it because it is patriotic to do so. I congratulate you.

Madam Speaker, as a senior member of the House and the Committee on Homeland Security, and as Chair of the Judiciary Subcommittee on Crime, Terrorism, and Homeland Security, and a member of the Equality Caucus, I rise in strong support of H.R. 3076, the Postal Service Reform Act of 2022.

Passage of this legislation is urgently needed because USPS incurred its fourteenth consecutive net annual loss in 2020, and even if USPS continues to default on mandated payments, it would likely run out of cash to fund its operations prior to 2024.

Madam Speaker, USPS funds the universal mail service it provides to nearly 159 million delivery points solely through the sale of postage.

USPS adds one million new delivery points every year, even as mail volume continues to fall.

This means USPS must deliver less and less mail to more and more places.

In addition, several congressional mandates imposed when mail volume was at its peak put USPS on the road to insolvency.

USPS is required to pre-fund the health care costs of its employees, regardless of whether they actually serve until retirement.

USPS is also required to fund its pension liabilities at a much higher level than the rest of the federal government.

To conserve cash, USPS has defaulted on retiree health care payments since 2012.

That is why the key reforms in the Postal Service Reform Act of 2021 are so important.

First, the Postal Service Reform Act of 2021 would require future Postal Service retirees, who have been paying into Medicare their entire careers, to enroll in Medicare.

Currently, roughly a quarter of postal retirees do not enroll in Medicare even though they are eligible, which means USPS is stuck paying far higher premiums than any other public or private sector employer.

By more closely integrating Medicare, USPS estimates it could save approximately $22.6 billion over 10 years.

Second, the Postal Service Reform Act of 2021 would eliminate the requirement that USPS pre-fund retiree health benefits for all current and retired employees for 75 years in the future.

No private company or other federal government entity is required to comply with such a burdensome requirement and its elimination is estimated to drastically reduce its prefunding liability and allow USPS to save roughly $27 billion over 10 years.

Third, USPS Reform Act of 2021 would require USPS to develop a public-facing, online dashboard with national and local level service performance data updated each week to provide additional transparency and promote compliance with on-time delivery of mail.

Fourth, the Postal Service Reform Act of 2021 would require USPS to deliver both mail and packages at least six days per week across an integrated network.

Finally, the Postal Service Reform Act of 2021 would allow USPS to enter into agreements with State, local, and tribal governments to provide non-commercial property and services that provide enhanced value, do not detract from core postal services, and provide a reasonable contribution to Postal Service institutional costs.

In addition, the legislation contains several provisions that will improve the effectiveness of the Postal Service, including:

The expansion of special rates for local newspaper distribution to promote local news organizations;

A Postal Regulatory Commission (PRC) review of cost attribution guidelines for different Postal Service products to ensure pricing accuracy and better accounting;

Increased funding autonomy and control for the Postal Regulatory Commission to increase its budgetary resources commensurate with its mission of regulating the Postal Service, and to shield the PRC from government shutdowns;

A study on operational inefficiencies in Postal Service flats and magazine processing;

Regular congressional reporting on Postal Service operations and financial performance to enable accountability of stated cost savings, revenue, and infrastructure investment goals;

Adjustments to the considerations USPS must make when deciding which mode of transportation to use to deliver mail in order to ensure greater consistency and reliability; and

The consolidation of the PRC's small Inspector General Office into the more robust Postal Service Office of Inspector General.

Madam Speaker, the Postal Service's unmatched network and Universal Service Obligation serves 159 million homes and businesses every day, processing and delivering an average of 430 million pieces of mail and packages per day.

In fact, USPS often delivers seven days a week due to demand and necessity.

This has been especially true during the Covid-19 pandemic as American homes, businesses and private shippers have relied on the Postal Service to meet their needs in these extraordinary times.

Madam Speaker, I strongly support this legislation and urge all Members to join me in voting for H.R. 3076, the Postal Service Reform Act of 2021.

BREAK IN TRANSCRIPT

Source