WASHINGTON (AP) — A sweeping overhaul of the U.S. Postal Service meant to shore up the popular but beleaguered agency’s financial future and cement six-days-a-week mail delivery was signed into law Wednesday by President Joe Biden.
“ Mail carriers deliver 4 million prescriptions a day, along with letters, consumer goods and even live animals, observes President Joe Biden. ‘The Postal Service is central to our economy and essential to rural America.’”
“The Postal Service is central to our economy and essential to rural America,” Biden said. He added that mailmen and women deliver 4 million prescriptions per day, along with letters, consumer goods and even live animals, “often to parts of the country that private carriers can’t or won’t or aren’t required to reach.”
The final legislation achieved rare, bipartisan support by scrapping some of the more controversial proposals and settling on core ways to save the service.
Delivering the mail is among the most popular things the government does, with 91% of Americans having a favorable opinion of the Postal Service, according to a Pew Research Center poll released in 2020.
The bill signing came the same day the Postal Service announced it plans to raise rates effective July 10. Under the proposal submitted to the Postal Regulatory Commission, the cost of a first-class Forever stamp would increase by 2 cents to 60 cents.
The Postal Service said the increase, which is less than the annual rate of inflation, will help the agency implement Postmaster General Louis DeJoy’s 10-year plan to stabilize agency finances.
Lawmakers from both parties attended the signing ceremony, and the mood was jovial.
Kansas Republican Sen. Jerry Moran previously had said the service was in a “death spiral” that was particularly hard on rural Americans.
The Postal Service Reform Act lifts budget requirements that have contributed to the agency’s red ink, and spells out that mail must be delivered six days a week, except for federal holidays, natural disasters and some other situations.
Postage sales and other services were supposed to sustain the Postal Service, but it has suffered 14 straight years of losses. Growing worker compensation and benefit costs, plus steady declines in mail volume, have exacerbated losses, even as the service delivers to 1 million additional locations every year.
See (November 2020): Post office’s losses widen to $9 billion this year as election boost fails to offset drop in mail demand
Also (November 2020): U.S. Postal Service officials ordered to appear in court after failing to comply with federal judge’s ballot-sweep order
The new law ends a requirement that the Postal Service finance workers’ healthcare benefits ahead of time for the next 75 years — an obligation that private companies and federal agencies do not face. Biden said that rule had “stretched the Postal Service’s finances almost to the breaking point.”
Now, future retirees will enroll in Medicare, while other health plans and the Postal Service cover only current retirees’ actual healthcare costs that aren’t paid for by the federal health-insurance program for older people.
“In recent years we saw how unfair policies forced this treasured institution to cut costs and delayed the delivery of medication, financial documents and other critical mail,” Michigan Democratic Sen. Gary Peters, who helped write the legislation, said in a statement. “These long overdue reforms will undo these burdensome financial requirements.”
To measure the agency’s progress in improving its service, the law…
Read More: Biden signs into law Postal Service bill saving 6-days-a-week mail delivery across U.S.