February 10, 2022

On Wednesday February 9, 2022, the US House of Representatives passed the Postal Service Reform Act of 2021 by a 342 – 92 vote.   Years of effort by multiple stakeholders, including the AUSPL, have helped make postal reform a reality, and the ultimate passage of the Postal Reform Act (the “Bill”) will serve as an important step in getting the USPS back on its feet financially.  Rep. Carolyn Maloney (D-NY), Chairwoman of the House Oversight Committee, said about the Bill, “It is absolutely clear that this bill is good for both the Postal Service and the American people.”

As evidenced by the votes for passage, the Bill, introduced by Rep. Maloney, had broad bipartisan support.  The Bill now heads to the Senate, where it is believed there will also be bipartisan support.  Senator Gary Peters (D-MI), who sponsored a companion Senate bill, voiced optimism that the Senate will also pass the version of the Bill that passed in the House.  Additionally, Senate Majority Leader Chuck Schumer has said that the Senate would take up and pass the bill in the coming weeks.

The Postal Reform Act will help to solidify the financial condition of the USPS by eliminating the burden placed on the USPS by prior law, which required the USPS to “pre-fund” certain retirement benefits for future retirees.  As part of the Bill, USPS retirees will receive health care benefits through Medicare.  Additionally, the Bill permits the USPS to enhance revenues by providing certain non-postal services to state governments, as well as tribal and federal agencies.

Other provisions of the Bill include a 6-day delivery mandate, and additional semi-annual reporting to Congress, the White House and the Postal Regulatory Commission on mail volume, the USPS’s financial condition, and its implementation of operational changes.

The full text of the Postal Reform Act passed by the House is at this link.