Congress Wants Taxpayers To Bail Out the Postal Service

“A first-class stamp costs more than ever, and the U.S. Postal Service (USPS) recently received a $10 billion loan from the federal government as part of a major pandemic relief package passed in 2020.

Now, Congress might force taxpayers to cover the cost of retired postal workers’ health care—something for which the supposedly self-financing agency has always been responsible.

With little fanfare and broad bipartisan support, the House of Representatives voted earlier this week to pass the Postal Relief Act of 2022. The bill sweeps retired postal workers into the already strained Medicare system, whether they want to join or not, and excuses the USPS of having to self-fund health benefits for its retirees.”

Mail delays and price hikes are coming to USPS. Here’s why.

“The United States Postal Service started slowing its mail delivery on Friday, part of an effort by Postmaster General Louis DeJoy to cut costs over the next 10 years.

The most widespread and significant change will affect first-class mail — things like letters, small packages, bills, and tax documents. Prior to the changes, customers throughout the US could expect first-class mail to reach its destination in one to three days; now, that timeframe will extend to between one and five days.

That “means mail delivery will be slower than in the 1970s,” for an estimated 40 percent of first-class mail, Paul Steidler, an expert on the postal service and supply chains at the Lexington Institute, told CBS.

That’s because the USPS is set to reduce its reliance on planes to transport mail as part of a broader cost-saving effort, instead shifting some deliveries within the continental US to ground transportation. According to the Washington Post, the Postal Service will reduce the amount of mail transported via plane from 20 percent to 12 percent.

According to an August notice from USPS in the Federal Register, using cargo planes and passenger aircraft to transport mail is more expensive and less reliable because of “weather delays, network congestion, and air traffic control ground stops.””

The White House says USPS isn’t removing mail-sorting machines. Postal workers say it is.

“after being updated by a producer, Tapper fulfilled Meadows’s request: He cited Chris Bentley, president of the National Postal Mail Handlers Union Local 297, which covers Kansas and part of Missouri, who told CNN that postal management “has already taken out four machines in Kansas City, two machines in Springfield, Missouri, and one machine in Wichita, Kansas, that is earlier this year — under this new postmaster general.”

Meadows denied the claim that it was the result of the current postmaster general and said that it was an “already scheduled reallocation” and that there isn’t “a new initiative by this postmaster general.”

But reports from NBC News, CNN, and the Washington Post indicate that 671 machines are being taken offline under a new policy. NBC reports that, according to internal Postal Service documents it obtained, the new postmaster general appointed by Trump in May, Louis DeJoy, is responsible for the decommissioning initiative. And postal workers say the process of taking machines out of service under this initiative began in June.”

“Experts on voting behavior have said that before the pandemic, an estimated 25 percent of voters would’ve been expected to cast their ballots by mail; they now estimate that 60 percent or more will attempt to vote by mail because the pandemic is discouraging in-person voting.

If Meadows is claiming that a new machine removal initiative doesn’t exist when in fact it does, then his promise that new ones won’t be taken offline is, at best, questionable. How can the White House reverse a policy it claims doesn’t exist?”

“Meadows said that Trump is open to injecting emergency funds into the Postal Service if he can come to a fair deal with Democrats. But that contradicts Trump’s admission on Thursday that he opposes providing additional funding for the Postal Service because he doesn’t want everyone to be able to vote by mail.”

“Trump has persistently attempted to delegitimize the reliability of mail-in voting, describing it as acutely vulnerable to fraud — without presenting evidence and despite the consensus among voting rights experts that it’s secure when funded properly.”

If the US Postal Service fails, rural America will suffer the most

“The USPS is legally required to deliver all mail, to all postal addresses in all regions, at a flat rate, no matter how far it may have to travel. The service’s accessibility and affordability are especially important to rural communities that live in poverty and to people with disabilities, who can’t afford the cost of a private business to deliver their daily necessities. (In 2017, the rural poverty rate was 16.4 percent, compared with 12.9 percent for urban areas.)
And while some may argue that the USPS is becoming more obsolete as an increasing number of services are becoming digitalized, there’s still a large chunk of people who rely on mail because they have poor (or no) internet service. (The Federal Communications Commission estimates that 14.5 million people in rural areas lack access to broadband.) In fact, 18 percent of Americans still pay their bills by mail, according to an ACI Worldwide report; meanwhile, 20 percent of adults over 40 who take medication for a chronic condition get those pills by mail order, according to a survey by the National Community Pharmacists Association.

Then there are the several small towns around the country that vote only by mail because they’re not populated enough to open up polls. In Minnesota, for example, 130,000 receive a mailed ballot every election because they live in a town with fewer than 400 people.

“USPS isn’t just a public service,” Baker said. “It’s a lifeline.””

“The USPS was never really meant to operate as a business but as a public service, which is why it’s been able to keep its prices lower than private companies. Businesses like FedEx and UPS don’t build offices in remote rural areas, like deep in Wyoming or in the mountains of Colorado, because it’s simply not profitable. They often rely on the Post Office for last-mile delivery; the agency delivers mail for them from major transportation hubs to the final delivery destination, often in secluded areas.

This ultimately means that without the USPS, FedEx and UPS won’t have the resources to deliver to remote rural areas, nor will they likely make investments to do so since they’ll lose money in the process. Instead, people will have to bear the burden of traveling to the companies’ offices in larger towns to meet their mailing needs.”

“The USPS also serves a crucial role in ensuring that everyone has a right to vote by delivering mail-in ballots to the most remote areas of America. Several states allow those in small towns to vote by mail so that they don’t have to travel miles to their polling area in larger cities. It’s played a particularly important role in rural areas where the population is growing older — rural communities have the largest share of people above the age of 65 — and is less mobile than younger generations.”