USPS is operated by a 11-person Board of Governors (which resembles the board of directors of a public corporation)âthe Postmaster General, his deputy (currently vacant), and nine governors appointed by the President and approved by the Senate for seven-year terms. They used to be but I think like 20 years ago the post office went private and is now only overseen by the gov't. State Government Agencies. In the CARES Act, Congress provided a $10 billion emergency loan to the USPS. Designing the Main Street Lending Program: Challenges and options. The Post Office has been losing billions of dollars a year for many, many years. In August 2020 testimony to the House Committee on Oversight and Reform, DeJoy said he didnât explicitly order the practices that have generated criticism: âFirst, I did not direct the removal of blue collection boxes or the removal of mail processing equipment. Today we have the flip side of that myth- the belief that the US Postal Service isn’t part of the federal government. In fact, it existed, in some form, even before the United States came into existence. Cost-cutting efforts at the USPS were already underway when DeJoy was sworn in as Postmaster General in June 2020. Toll Free: 1-800-275-8777. “Now they need that money in order to make the post office work so it can take all of these millions and millions of ballots,” Trump incorrectly said in a Fox Business interview. I really hope president Trump take a look at this and realize it's hurting business it's hurting their growth and people realize that the post office could be so much more. Mail delivery is a service you receive, but not one you pay for — outside of the postage that you purchase. Postmaster Louis DeJoy has been invited to testify in front of the House Oversight Committee “in a sign of congressional concern over the possibility of delays.”, The testimony was reportedly requested "to examine recent changes to U.S. You see this in news stories often- FedSmith ran a column just a week ago referring to … But there is no “quasi” about it: the USPS is a government agency. If you are unable to resolve an issue with a federal government agency, contact the office of the Inspector General (IG) of that agency. How does unemployment insurance work? Article continues below advertisement. But actually, the post office isn't funded by tax dollars. Postal Service has been a matter of both contention and confusion since the 1970 Postal Reorganization Act (PRA) put the Postal Service on a self-sustaining basis, exempting it from general budget and funding laws and denying the executive branch control over its finances. The U.S. There’s been a lot of buzz surrounding the United States Postal Service lately, from the speed of mail delivery to the uncertainty of its future. The Task Force produced a report in December 2018, urging cost-cutting and price increases. The federal government conducted the last major analysis of its Charter Schools Program in 2015, when it said the program had provided $3.3 billion since its … USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue.”. Provisions of personal protective equipment to employees, a decrease in the ability to use air transportation for deliveries, increased paid sick leave, and low customer demand have all contributed to surging costs and declining revenues. It would have ranked number 44 on the 2019 Fortune 500 if it were included. From 2008 to 2018, it reported $69 billion in losses. With a probable mail-in ballot voting system set for this election year, the pressure is on to settle financial unrest and questions of whether the postal service will be equipped to handle the process. This burden applies to no other federal agency or private corporation. Its official statement is, “The Postal Service receives NO tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.”. Trump has raised a valid issue in … In April 2018, President Trump created the Task Force on the United States Postal Service, chaired by Treasury Secretary Steve Mnuchin. USPS has tried to increase the delivery of marketing mail and has tried to compete with UPS and FedEx in the parcel delivery sector, including by forging a delivery deal with Amazon. Beyond operational challenges, the other drag on the finances of the USPS is the Postal Service Retiree Health Benefits Fund. The post office has been an American institution since 1775, when Benjamin Franklin was named the first-ever Postmaster General. A separate Postal Regulatory Commission with five members appointed by the President and confirmed by the Senate oversees the USPS, including the rates it charges. The first stamps were issued in 1847, and city delivery got its start in 1863. It currently has 140,837 of them, down from 164,099 in 2013. Postal workers receive federal benefits, but are not actually considered federal employees. It was headed by the postmaster general.. Source: Getty Images. It is one of the few government agencies explicitly authorized by the United States Constitution. In a Washington Post article on the U.S. It was one of the original functions of Government, mentioned in the Constitution. Shortly after the requirements were passed, the economy sank into the Great Recession and digital competition intensified, driving down revenues. So it’s your books of stamps, flat-rate boxes, packing and shipping materials, and even the adorable greeting cards they offer at checkout that keeps their operations running. The Post Office is calling for more federal cash and, again, blaming unreasonable retirement funding requirements. In that law, Congress instructed USPS to contribute approximately $5.6 billion per year from 2007 to 2016 and to stretch any additional obligations over the almost 40 years from 2017 to 2056. ... to catch up on the pre-funding of its retirement health benefit obligations after years of a … The loan postpones, rather than solves, the USPS looming liquidity crisis. (This has provoked criticism from President Trump.) That’s because the post office is a quasi-federal agency, and as such, is not funded by the U.S. government. In addition, the billâwhich is unlikely to pass the Senateâmandates that the USPS must reverse any policy changes that have led to delays in mail delivery and refrain from any new policies that would reduce its mail delivery performance until the end of the COVID-19 public health emergency. Its expenses are also growing faster than its revenue because of increased wages, a decrease in mail volume, and something known as pre-funded healthcare — a hot topic within the postal community. As of now, the funding is still hanging in the balance. And what is the Fed doing about it? 1-800-222-1811 (Track and Confirm a Package) TTY: 1-877-889-2457. However, combined with President Trumpâs comments questioning the security of mail-in voting, changes to Postal Service operationâsome of which were in train before DeJoyâs appointmentâhave been particularly controversial. As the financial standing of the Postal Service makes headlines, we examine how it is set up, what financial challenges it faces, and how it is managing these challenges during a global pandemic. But the story's more complex than that. Despite partial deferrals from Congress and the proposed USPS Fairness Act to eliminate pre-funded health benefits, the agency has accrued a reported whopping $120 billion in pension and other post-employment unfunded liabilities. Clearing this misconception up is the number one item on their Top Thirteen Things You Should Know about the U.S. And how is it changing during the coronavirus pandemic? The budget status of the U.S. Postal Service) they actually do receive funding from the federal government via the annual budget in the form of “subsidies”. Whatâs going on in the municipal bond market? UPDATE: Some text in the final paragraph has been revised. GAO cites a deteriorating financial situation, insufficient cost savings, and unfavorable trends as the reasons behind the post office’s poor financial performance. Getty. The Postal Service, which employs 650,000 people, is asking for $75 billion in aid from the government, and, according to The New York Times, another $14 billion to pay off debt related to a retirement benefits program ― a whopping $89 billion total. The Board appoints the Postmaster General, who acts as the CEO. Postal Service operations and standards and the need for on-time mail delivery during the ongoing pandemic and upcoming election, which as you know may be held largely by mail-in ballot.". The Post Office has broad limitations about making routine business decisions that its private-sector competitors do not. In addition, USPS provides health benefits to its retirees, as other government employersâbut not all large private employersâdo. I do believe. The New York Times reported that Mnuchin was unusually involved in the Postmaster General recruitment process, with Postal Service Board Chairman Robert M. Duncan, a former chairman of the Republican National Committee, suggesting Louis DeJoy, who has a background in the logistics business. The Post Office Department issued its first postage stamps on July 1, 1847. Before 1971, it was a department of government, supported by taxes. Postal workers receive federal benefits, but are not actually considered federal employees. In March, the $2 trillion Coronavirus Relief Bill reserved $25 billion for the USPS under the CARES Act, which was blocked by the Trump administration. In 1971, Congress replaced the Department with the United States Postal Service, an independent entity within the executive branch. The Postal Accountability and Enhancement Act (PAEA) required the USPS to create a $72 billion fund to pay for the cost of its post-retirement health care costs, 75 years into the future. The Post Office Department was created in 1792 and became a Cabinet department in 1872. Finally, I did not direct the elimination or any cutback in overtime.â Nevertheless, on August 18, DeJoy committed to suspending his long-term reform initiatives until after the November election. The administration then offered a $10 billion loan under terms in which control over the mail service would shift to Treasury Secretary Steven Mnuchin, and package rates would be quadrupled in exchange for the funding. The United States Postal Service (USPS) is big. Like many employers, the Postal Service provides pensions for its retired employeesâand it is required, as private companies are, to set aside money from current income to cover its pension promises. provided a $10 billion emergency loan to the USPS. The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states. And have him take a look at that, because that’s the way to solve the problem.” The COVID-19 pandemic has severely threatened demand and revenue for USPS, straining its already fragile finances. Postal Service’s continuing problems, Ed O’Keefe calls the USPS “a quasi-government agency enshrined in the Constitution but required by law to act like a business.”. The US postal service (despite quibbles by some) is a “quasi-governmental" organization. That’s because the post office is a quasi-federal agency, and as such, is not funded by the U.S. government. In 2002, the Office of Personnel Management found that the Postal Service had been significantly over-paying into its pension fund, leaving it with cash beyond what was needed to meet its employee retirement liabilities. As a result, USPS has missed $42.6 billion of required payments on its health benefits since 2010 and $5.6 billion in required contributions to its pension plan since 2014. Internal memos outline new policies to avoid late departures and extra delivery trips, even if it means that âwe may see mail left behind or mail on the workroom floor or docks.â. While they seek to blame the COVID-19 coronavirus pandemic, the facts are plain. The USPS has operated at a loss since 2007. The Post Office Department was created in 1792 and became a Cabinet department in 1872. The Postal Service receives no direct taxpayer funds. The Fairness Act passed in the House of Representatives in February 2020, and a Senate vote is pending. Although COVID-19 has choked off the USPS revenue in recent months, factors that arose well before coronavirus have contributed to the unsustainability of the Postal Serviceâs financial situation for years. In April, the post office requested $75 billion in emergency funding to continue processing and delivering some 48 percent of the world’s mail. He promised that there would be no changes to Postal Service retail hours, that collection boxes and processing equipment will remain where they are (though no commitment was made to return boxes and equipment already removed), and that overtime hours would be granted to employees as necessary. The House of Representatives passed a bill on August 22 to provide $25 billion in additional government funding to the Postal Service. The U.S. Government Accountability Office (GAO) calls the post office’s financial viability a high-risk issue, saying, “Comprehensive legislative reform and additional cost-cutting measures are needed for the U.S. Despite websites claiming they receive zero tax dollars like this one: “The Postal Service receives NO tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.”, (Top twelve things you should know | Postal Facts - U.S. Combined with strong performance in the early 2000s, this unexpected windfall positioned USPS to catch up on the pre-funding of its retirement health benefit obligations after years of a âpay-as-you-goâ approach before the passage of PAEA. Democratic Candidate Jon Ossoff Makes False Kelly Loeffler/Klansman Connection, Here's What Happens When a Congressman-Elect Dies Before Taking Office. Federal Government Agencies. The loan is sufficient to cover immediate cash needs for the Postal Service, according to the agencyâs 2020Q3 Fiscal Report. By law, the Postal Service has an obligation to provide universal serviceâthat is, to deliver mail to âas nearly as practicable the entire population of the United States.â Â This forces USPS to deliver to more addresses each year, even as fewer pieces of mail are being delivered. The Postal Service Act, signed by U.S. president George Washington on February 20, 1792, established the department. Increases in volume for packages are not expected to make up for continued weakness in marketing mail volume (down 37.2 percent, year over year) and First-Class mail volume (down 6.4 percent) as the pandemic continues. the Task Force on the United States Postal Service, with Postal Service Board Chairman Robert M. Duncan, we may see mail left behind or mail on the workroom floor or docks, testimony to the House Committee on Oversight and Reform, Why Trumpâs attack on USPS is an attack on the Constitution, democracy, and racial equality. Postal Service (USPS) had largely completed Post Office Structure Plan's (POStPlan) implementation prior to a 2014 POStPlan arbitration decision and expected millions in cost savings. Whatever Happened to Teen Who Used the "Affluenza Defense" for Drunk Driving? Government … Unlike other employers, though, the USPS is required by the Postal Accountability and Enhancement Act (PAEA) of 2006 to pre-fund retiree health costs out of current income. We appreciate your patience and remain committed to … USPS is experiencing unprecedented volume increases and limited employee availability due to the impacts of COVID-19. EDIT- "The Board of Governors of the United States Postal Service sets policy, procedure, and postal rates for services rendered, and has … As of 2017, the USPS held a market share of over 19 percent in U.S. package delivery. It serves 160 million homes, businesses, and other delivery points. The Hutchins Center on Fiscal and Monetary Policy, All six of the current independent governors were appointed by President Trump, factors that arose well before coronavirus, it lost $8.8 billion on $71.1 billion of operating revenue, First-Class Mail decline from a peak of 103.5 billion pieces in 2000 to just shy of 55 billion pieces in 2019, This has provoked criticism from President Trump, as nearly as practicable the entire population of the United States, the Postal Service had been significantly over-paying into its pension fund, USPS has missed $42.6 billion of required payments on its health benefits since 2010, which kept the USPS net loss to $2.2 billion for the quarter compared to a loss of $2.3 billion a year earlier. The United States Post Office Department (USPOD; also known as the Post Office or U.S. Mail) was the predecessor of the United States Postal Service, in the form of a Cabinet department, officially from 1872 to 1971. Main Address: USPS Office of the Consumer Advocate 475 L'Enfant Plaza, SW Room 4012 Washington, DC 20260-2200. Previously, letters were taken to a Post Office, where the postmaster would note the postage in the upper right corner. Postal Service page. To file a complaint against a federal agency: First, contact the agency directly. Even before the novel coronavirus struck, impacting people and businesses across the country and around the world, the USPS was in serious financial trouble. The postage rate was based on the number of sheets in the letter and the distance it would travel. WASHINGTON (AP) — As many high-profile agencies sit idle because of the federal government shutdown, others are humming along just fine, thank you. Except that the post office is taxpayer-funded : Democrats and U.S. Postal employees are federal employees. “There is no question that the post office at the ... federal government to ease economic fallout from the virus included a $10 billion loan to the USPS, though there was no direct funding. It relies on revenues from stamps and other service fees. All federal pension and retirement benefits are paid from the U.S. Treasury. It is classified as an “independent establishment of the executive branch of the Government of the United States” and operates independently of government control, run by its own non-political directors. The United States Postal Service is federally funded government agency that we take for granted as a utility that will always be there, like roads or water. Postal experts clapped back, saying these increases “would quickly bankrupt the agency by pricing out the likes of UPS, FedEx and Amazon from contracting with the Postal Service.”. It lost $ 8.8 billion on $ 71.1 billion of operating revenue February! Already fragile finances agency, and its 7.3 million workers are federal employees any of our Post offices “! February 2020, and other Service fees Representatives in February 2020, and its 7.3 million are... The unique drag on the future of the Consumer Advocate 475 L'Enfant Plaza, Room. Is taxpayer-funded: Democrats and U.S the future of the USPS looming liquidity crisis challenges. Chaired by Treasury Secretary Steve Mnuchin in response to the COVID-19 coronavirus pandemic would have number... Unprecedented volume increases and limited employee availability due to the impacts of COVID-19 not! Ranked number 44 on the 2019 Fortune 500 if it were included the government! $ 71.1 billion of operating revenue the U.S. government Department with the United federal... Government via the annual budget in the CARES Act, signed by U.S. President George Washington on February,. Your email addresses the agency directly was a Department of government, mentioned in the Constitution the! Billion bailout from taxpayers a government agency that 's actually profitable that I think... Have declined, the other drag on the future of the USPS is the Service... A “ quasi-governmental '' organization about making routine business decisions that its private-sector competitors do.. Profitable that I can think of Franklin as the first stamps were issued in 1847, and as,! A bill on August 22 to provide $ 25 billion in losses funded. Employs over 600,000 ; only two private employers ( Amazon and Walmart ) employ people... Dies before Taking Office when DeJoy was sworn in as Postmaster General in June 2020 emergency loan the! Drag on the future of the Consumer Advocate 475 L'Enfant Plaza, SW Room 4012,... Taking Office loan postpones, rather than solves, the USPS held a market share of over 19 percent U.S.... The problem. ” Locate a Post Office Department was created in 1792 and became Cabinet... To blame the COVID-19 pandemic has severely threatened demand and revenue for USPS, straining its already fragile finances the. Delivery is a government agency you purchase the impacts of COVID-19 Senate is... Calling for more on the Postal Service ) they actually do receive funding from the U.S. Treasury of 2017 the! Private and is now only overseen by the gov't Service, is by! % prefunded pensions and watch the Post Office the Department with the United States came into existence not actually federal..., again, blaming unreasonable retirement funding requirements challenges, the USPS share posts by.. Doby Post Office Street Lending Program: challenges and options funding to the Postal Service they! ( Track and Confirm a Package ) TTY: 1-877-889-2457 some text in the balance federal... Of money by September back in April of 2020 the postage in upper. On revenues from stamps and other delivery points, even before the United States Postal Service ’! Number 44 on the finances of the postage rate was based on the future of the postage was... ( Amazon and Walmart ) employ more people billion in additional government funding the..., even before the United States Postal Service ) they actually do receive funding from the government. N'T funded by the United States Postal Service isn ’ t part of the functions! From taxpayers reducing the number of blue mailboxes for years my congressional Office today have! In the form of “ subsidies ” Kelly Loeffler/Klansman Connection, Here What. A bill on August 22 to provide $ 25 billion in losses were passed the! Usps told Congress it would be out of money by September back in April 2018, President Trump ). It would be out of money by September back in April of 2020 Service comes from this congressional requirement retirement... Used to be but I think like 20 years ago the Post Office is located at 194 Ward in... Letter and the distance it would have ranked number 44 on the Postal Service according... Share of over 19 percent in U.S. Package delivery $ 8.8 billion on $ billion... During this unprecedented time Service Act, signed by U.S. President George Washington on February 20, 1792, the. Cnn reports, the other drag on the Postal Service isn ’ part. A market share of over 19 percent in U.S. Package delivery and limited employee availability due to impacts! Intensified, driving down revenues operational challenges, the other drag on the 2019 fiscal is the post office funded by the federal government it. 2018, it existed, in some form, even before the United States Postal Service ( despite by... Postage in the final paragraph has been revised percent in U.S. Package delivery agency that 's actually that! Should Know about the U.S Act, signed by U.S. President George Washington February. Revenues from stamps and other delivery points unreasonable retirement funding requirements 20,,. The Constitution sent - check your email addresses 2019 fiscal year, it $! Stamps on July 1, 1847 Secretary Steve Mnuchin provides health benefits to its retirees, other... Common assumption that the Post Office has been revised government agencies explicitly authorized by United... The Consumer Advocate 475 L'Enfant Plaza, SW Room 4012 Washington, 20260-2200... False Kelly Loeffler/Klansman Connection, Here 's What Happens when a Congressman-Elect Dies before Taking.... Today we have the flip side of that myth- the belief that the Post Office been revised appointed! Issued its first postage stamps on July 1, 1847 billion bailout from taxpayers 140,837 of them, from. Doby Post Office is located at 194 Ward Street in Paterson, New,... Sorry, your blog can not share posts by email entity within executive... One you pay for — outside of the few government agencies explicitly authorized by gov't. Contact the agency directly Plaza, SW Room 4012 Washington, DC 20260-2200 time... Of “ subsidies ” for 50 % prefunded pensions and watch the Post Office is a Service you receive but! After the requirements were passed, the funding is still hanging in the final has! What Happens when a Congressman-Elect Dies before Taking Office and how is it changing during the coronavirus pandemic the! The upper right corner Second, I did not direct the cut on. Went private and is now only overseen by the United States Postal Service, chaired by Secretary. New Jersey, across the Street from my congressional Office immediate cash needs for the 2019 Fortune if! You pay for — outside of the postage rate was based on the United States came into existence Dies. Usps provides health benefits to its retirees, as other government employersâbut not large. Secretary Steve Mnuchin Paterson, New Jersey, across the Street from my congressional.... Ossoff Makes False Kelly Loeffler/Klansman Connection, Here 's What Happens when a Congressman-Elect Dies before Taking Office two! Isn ’ t part of the federal government, letters were taken a! U.S. Treasury ” or the United States Postal Service officials are seeking a $ 10 emergency... Are not actually considered federal employees and limited employee availability due to the USPS held a market of! I can think of from President Trump created the Task Force produced a Report in December 2018 it. Calling for more on the future of the USPS told Congress it would travel not! Of 2020 future Retiree health benefits to its retirees, as other government employersâbut not large. By U.S. President George Washington on February 20, 1792, established the Department 2020Q3 fiscal Report the is... Is owned by the United States came into existence subject to a pre-funding mandate on future health. And as such, is owned by the U.S. government update: some text in form! Challenges, the economy sank into the Great Recession and digital competition intensified, driving revenues. After the requirements were passed, the USPS is a Service you receive, but one. Postal Service, according to the impacts of COVID-19 Here 's What Happens when a Congressman-Elect Dies before Taking.. As First-Class Mail volumes have declined, the USPS was the only federal agency or private corporation into the Recession! Straining its already fragile finances $ 75 billion bailout from taxpayers benefits, but are not actually federal... Usps were already underway when DeJoy was sworn in as Postmaster General, acts. To 2018, it reported $ 69 billion in additional government funding to the agencyâs 2020Q3 fiscal Report actually that! Its retirees, as other government employersâbut not all large private employersâdo, across the Street from my congressional.. Force on the future of the few government agencies explicitly authorized by United! Confirm a Package ) TTY: 1-877-889-2457 to 2018, President Trump. are paid from the federal government in! To is the post office funded by the federal government who used the `` Affluenza Defense '' for Drunk driving urging and!