As it has played out in the United States, the Coronavirus pandemic has significantly impacted the United States Postal Service (the “USPS”).  According to some estimates, first class mail volume had dropped thirty percent (30%) as of March 30.  Unfortunately, the revenue the USPS generates from mail delivery is the main contributor to its overall revenues.  When businesses across the United States shut down because of the COVID-19 pandemic, they also stopped using the U.S. mail at the same rate as they had previously, resulting in a significant decline in the USPS’s revenue.

Unfortunately, Congressional efforts to relieve the financial burden on the USPS during the COVID-19 pandemic have met with inconsistent support.  In the initial stimulus package (the CARES Act), additional funding for the USPS was considered.  However, when the final Bill emerged from Congress and was signed into law, the only financial relief provided to the USPS was a $10 billion increase in its borrowing authority.

Now, as Congress considers additional stimulus measures to combat the economic dislocation being caused by the Coronavirus, the question of financial support for the USPS has re-emerged.  But it remains uncertain whether Congress and the Administration will now get serious about protecting the USPS and its ability to perform its “universal service” mission.

On some levels, it is understandable that observers might question whether the USPS needs emergency financial support.  In recent years, except for the USPS’s obligation to pre-fund certain retirement and/or health care benefits that will in the future be payable to USPS retirees, the USPS has basically operated as a break-even business.  Since the USPS has accrued the liability for that pre-funding obligation rather than paying it, some might not consider it necessary to provide extra funds to “rescue” the USPS when it is otherwise essentially breaking even.

However, the statistics showing a massive decline in the volume of letter mail since the implementation of “stay at home” restrictions due to the COVID-19 outbreak compel a different conclusion.  Even if the USPS might be able at other times to operate close to break-even levels (while accruing the pre-funding liability), it cannot do so when letter mail volume is suddenly reduced as it has been during the virus outbreak.  Revenues from letter mail are critical to the USPS’s ability to stay solvent and perform its universal service obligation.  The recent reduction of the USPS’s letter mail business could prevent that.

Because of the dire financial condition of the USPS during the Coronavirus epidemic, AUSPL has remained vocal in its support of the USPS as the USPS deals with the consequences of COVID-19.  AUSPL has continued to press its contacts in Congress to encourage them to include emergency financial assistance for the USPS as part of stimulus funding legislation.  AUSPL has also sought the help of its members, asking them to write letters to their Representatives and Senators to ensure the USPS has the funding it needs to survive the epidemic.

Please help us in these efforts.  The USPS’s universal mail service mandate was a foundational principle when the nation was established to ensure all citizens had reliable access to critical information.  Congress needs to take action to protect the USPS and ensure its future viability.  Please contact us for more information about the ways you can help.

Click here for a sample of a letter you can send to your Representative or Senators.