H.R. 5714 – The Postal Service Reform Act of 2016

The House Oversight and Government Reform Committee approved H.R. 5714 by voice vote on July 12, 2016. The Committee has requested that the Congressional Budget Office determine the cost to implement this legislation and to have that estimate available when the House reconvenes in September. This cost estimate will have a major impact on the legislation’s future consideration during the remainder of this 114th Congress.

The legislation seeks to put the United States Postal Service on a firmer financial foundation by refinancing USPS prefunding payments to the federal government for the retirement and health care benefits of postal employees; requiring that postal retirees use Medicare as their primary health carrier; allows USPS to raise first class mail rates by 1 cent to make up for the rate decrease in April; and gives the Postal Rate Commission the ability to adjust other postal rates.

H.R. 5714 authorizes the Postal Service’s to provide a new range of non-postal services to state, local and tribal governments and other federal agencies. It also creates a new position of Chief Innovation Officer to manage the Postal Service’s development and implementation of innovative postal and non-postal products and services. The current nine-member Board of Governors would be reduced to five, with authority to hire, hire and set salary for PMG & Deputy PMG.

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Bi-Partisan Postal Reform Legislation in the House of Representatives

H.R. 5714, Postal Service Reform Act of 2016, was introduced in the House of Representatives on July 11 and referred to the Committee on Oversight and Government Reform, the Committee on Energy and Commerce, and to the House Ways and Means Committee for budget scoring. On July 12 the Oversight Committee issued a report to the full chamber recommending that the bill be considered further.

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The USPS in the Obama Administration’s Budget

On February 9, 2016, the President submitted to Congress his Budget for Fiscal Year 2017.

The Appendix under Other Independent Agencies contained the Administration’s approach to resolving financial difficulties at the US Postal Service. The Administration promises to work with the Congress and Postal stakeholders to secure reforms that improve the efficiency of the USPS, update its business model and provide measures for financial relief.

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