After 15 years of fighting for much-needed and long-overdue reforms, the Postal Service Reform Act has passed in the U.S. House of Representatives. The bipartisan legislation will help the U.S. Postal Service save money, balance its budget and improve service to Americans around Florida.
“The Postal Service Reform Act is the most important piece of postal legislation in decades,” said American Postal Workers Union President Mark Dimondstein. “This bill will place the USPS on the path toward financial stability by repealing the onerous and financially debilitating pre-funding mandate, ensuring six-day delivery, adding much-needed transparency to postal operations, and delivering other essential reforms – ultimately saving the post office billions of dollars each year.”
The Postal Service Reform Act of 2021 is a critical reform that will repeal the prefunding mandate – a misguided rule that was passed in 2006 and which has gutted the Postal Service’s financial independence. In addition, the legislation will help to modernize the Service, ensure faster and more dependable deliveries, increase oversight and accountability, protect rural newspapers, and ensure the stability of this critical American institution.
Orlando Representative Val Demings voted for the bipartisan legislation. She has also previously led on provisions to eliminate the prefunding requirement (original cosponsor & voted for the USPS Fairness Act) and ensure Six Day Delivery (cosponsored resolution in support).
“The U.S. Postal Service didn’t care that my grandmother was a Black woman who didn’t have much and lived in a rural area,” said Rep. Demings. “They never failed to deliver. The U.S. Postal service is the oldest, most reliable, most trusted institution in this country. Countless Americans, including 90% of veterans, get their medicine through the mail. Millions of Americans rely on the Postal Service to correspond, to operate their small businesses, and to vote. The U.S. Postal Service is fundamentally American, and I am proud to vote today to protect this exceptional public service and save our post offices.”
Now, the bill heads to the U.S. Senate for debate, as supporters plan to apply pressure to Senators. Democrat Rep. Demings is running for Senate against Republican Senator Marco Rubio.
Core Provisions:
- Medicare Integration: The Postal Service Reform Act of 2021 would require future Postal Service retirees, who have been paying into Medicare their entire careers, to enroll in Medicare. Currently, roughly a quarter of postal retirees do not enroll in Medicare even though they are eligible. This means the Postal Service is stuck paying far higher premiums than any other public or private sector employer. By more closely integrating Medicare, the Postal Service estimates it could save approximately $22.6 billion over 10 years.
- Eliminating the Requirement to Prefund Retiree Health Benefits: The Postal Service Reform Act of 2021 would eliminate the requirement that the Postal Service pre-fund retiree health benefits for all current and retired employees for 75 years in the future. No private company or other federal government entity is required to comply with such a burdensome requirement. The Postal Service estimates this provision would drastically reduce its prefunding liability and allow it to save roughly $27 billion over 10 years.
- Service Performance Transparency: The Postal Service Reform Act of 2021 would require the Postal Service to develop a public-facing, online dashboard with national and local level service performance data updated each week to provide additional transparency and promote compliance with on-time delivery of mail.
- Six-Day Integrated Delivery: The Postal Service Reform Act of 2021 would require the Postal Service to deliver both mail and packages at least six days per week across an integrated network.
- Non-Postal Services: The Postal Service Reform Act of 2021 would allow the Postal Service to enter into agreements with State, local, and tribal governments to provide non-commercial property and services that provide enhanced value, do not detract from core postal services, and provide a reasonable contribution to Postal Service institutional costs.
