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White House rejects emergency funding for USPS

President Donald Trump has threatened to veto any stimulus funding bill that includes money to prop up the finances of the U.S. Postal Service, according to a report in the Washington Post.

The $2 trillion CARES Act originally contained a $13 billion grant to Postal Service, but that effort “was blocked by Treasury Secretary Steven Mnuchin, who warned such a move could blow up the relief bill. A committee aide said Mnuchin told lawmakers during negotiations: ‘You can have a loan, or you can have nothing at all,’ the Post reported.

The final CARES Act contained a $10 billion loan to the Postal Service, but it’s unlikely that sum will provide enough help. 

”We now estimate that the COVID-19 pandemic will increase the Postal Service’s net operating loss by more than $22 billion dollars over the next eighteen months, and by over $54 billion dollars over the longer term, threatening our ability to operate.” Postmaster General Megan Brennan said.

Several House members leaders have called on congressional leaders to include funding for USPS in future stimulus packages. In an April 6 letter, they urged leadership to include $25 billion in direct appropriations and debt relief, appropriate up to $250 million per year to cover unfunded mandates, require that postal employees enroll in Medicare and allow the Postal Service to conduct more non-postal business, particularly with state and local governments.

USPS, which employs about 630,000 workers, has seen decades of tough times turn sharply worse as the coronavirus pandemic has slowed the volume of profitable first-class mail. Trump has consistently been opposed to any support for USPS, claiming that if it charged Federal Express, Amazon and UPS more for last-mile deliveries, it could support itself.

Reader comments

Sun, Aug 2, 2020

Congress mandated the USPS to prefund 75 years of health benefits for retirees of the USPS. Congress has spent money to reduce the national debt. It is no longer available for it's intended use. The current Postmaster General appointed by the President has large investments in USPS competitors stocks. He is also inforcing policies that do not allow the carriers to complete their jobs each day and results in delays of mail and package delivery. It appears both men are attempting to destroy the USPS for personal advantages. Just my observations. USPS should receive funding and assistance just as other major industries such as hotels, cruise lines, and airlines in order to keep all businesses that rely on the services of the post office functioning smoothly.

Thu, Apr 30, 2020 Sam USA

Everyone really needs to read the US Constitution. Listed under "Powers of Congress" you will find that Our Government and Congress is "REQUIRED to establish post offices" and that also means PAYING the cost to establish the Post Office. Why is the post office the one and the only agency that has to fully pay for itself, when no other agency does????

Mon, Apr 13, 2020 Aric Medford, OR

Interesting

Mon, Apr 13, 2020

Lets go back to hiring permanent employees so these employees can take pride in their job. This statement is one of the best elucidated to indicate the limited mentality of deficient management. Let the employees do their work without interference of corrupt, self-serving management minions.

Mon, Apr 13, 2020

Bush Jr. wanted to privatize the federal government. That was idiocy then and now in current times the idiocy continues. No one ever learns.

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