Congress eliminates US Postal Service’s financial prefunding requirements

U.S. Senator Tim Kaine applauded passage of bipartisan legislation he cosponsored to set the United States Postal Service (USPS) on a more sustainable financial footing and promote long-term reliable service across the Commonwealth and country. The bipartisan Postal Service Reform Act strengthens transparency and accountability for USPS performance, eliminates unnecessary financial burdens, and helps ensure USPS can better serve the American people. Having passed the House and the Senate, the bill now heads to the President’s desk and is one step closer to becoming law.

“The Postal Service has provided critical services for Virginians, especially throughout the pandemic— including delivering mail, paychecks, and lifesaving prescription drugs,” said Senator Kaine. “But too often, Virginians have experienced unacceptable mail delays. I’m proud we were able to work across the aisle to help address this issue and stabilize the Postal Service, while saving billions of dollars.”

Specifically, the Postal Service Reform Act will:
• Eliminate the aggressive prefunding requirement that has hurt the Postal Service financially, and integrate postal worker retirees’ health care with Medicare. Together, these two reforms would create $45.9 billion in savings for the Postal Service over the next ten years. 

• Require the Postal Service to maintain its standard of delivering at least six days a week.

• Improve transparency of Postal Service operations to both customers and Congress by requiring the publication of easily accessible weekly service data on the Postal Service website, as well as issuing a detailed report to Congress every six months on Postal Service finances and operations.

The bill also includes provisions for Postal Service accountability and growth.