May 6, 2021
Last week a group of U.S. Legislators sent a letter to Congress urging consideration of pilot programs for postal banking as part of the Fiscal Year 2022 Financial Services and General Government Appropriations Bill. The letter asks for $6,000,000 to implement the pilot programs which are intended to “expand its [the USPS] current non-bank financial services to surcharge-free automated teller machines, wire transfers, check cashing, and bill payment.” Representative Marcy Kaptur OH-9, Alexandria Ocasio Cortez, NY-14, Bill Pascrell, NJ-9 and Senator Kirsten Gillebrand, D-NY signed the letter to the House Appropriations Committee Subcommittee on Financial Services and General Government.
Current postal banking offerings include issuance of money orders, electronic funds transfers and U.S. Treasury check cashing.
Postal banking would provide needed services to the estimated 63 million “underbanked” Americans, 90% of whom live in rural areas. The letter cites a 2014 USPS OIG report as saying that the USPS is well-positioned to provide basic banking services, particularly in rural communities. Additionally, the letter references a 2015 USPS OIG report saying that expanding banking services is statutorily permitted under current law. Basic postal banking would help both the communities receiving the services, and the USPS by providing additional income. Additional revenue is needed by the USPS particularly in rural areas where the USPS OIG estimates that the USPS loses $7 per postal customer.