Lawmakers Introduce Financial Relief Package for U.S. Postal Service
A bipartisan group of lawmakers has introduced the Postal Service Emergency Assistance Act to provide USPS with up to $25 billion to cover revenue lost and operational expenses arising from the COVID-19 pandemic. The legislation has earned the support of postal unions, who have long expressed a need to fund the Postal Service during the pandemic.
Under the legislation introduced by Senators Susan Collins (R-ME) and Dianne Feinstein (D-CA), the Postal Service would receive the funding boost after certifying in its quarterly and annual reports to the Postal Regulatory Commission that the funds are needed to cover COVID-19-related losses or operational expenses. Senators Collins and Feinstein’s bill would also clarify the borrowing authority provided in the coronavirus stimulus legislation, the CARES Act, and require the Board of Governors to transmit to Congress a plan to ensure the long-term solvency of USPS.
According to a press release from the lawmakers, the bill would “provide USPS with up to $25 billion in emergency COVID-19 funding, while ensuring that these funds are used only for COVID-19-related losses and expenses.”
Further stipulations include:
These funds would be appropriated to a newly created “Postal Service COVID-19 Emergency Fund” and would be available until September 30, 2022.
Prior to using the funds, USPS would be required to certify in its quarterly and audited annual reports to the Postal Regulatory Commission that the funds are needed to cover revenue losses or operational expenses resulting from COVID-19. Congress would also be sent a copy of these reports.
USPS would be required to prioritize the purchase of personal protective equipment and conduct additional cleaning and sanitizing of its facilities and vehicles.
Clarify the borrowing authority provided in the CARES Act to indicate that the Treasury Secretary shall lend the funds at the request of USPS and set the terms and conditions of the loan as those in place on September 29, 2018.
Require the new Postmaster General and the Board of Governors to transmit to Congress a plan to ensure the long-term solvency of USPS.
The plan would be due to Congress no later than nine months after the bill’s enactment.
The USPS would be required to provide an update briefing to Congress no later than six months after the bill’s enactment.
The legislation has gained the support of the United Postmasters and Managers of America, the National Rural Letter Carriers’ Association, the Coalition for a 21st Century Postal Service, and the National Postal Mail Handlers Union.
