All rights reserved. In 2006, the Postal Accountability and Enhancement Act (PAEA) ordered the USPS to pre-fund employee retiree health benefits for the next 75 years. That isn't bailouts. Benefits are not the only issue. We appreciate your patience. It closed in 2013 as part of a planned consolidation. Sort of. Ian Smith is one of the co-founders of FedSmith.com. A group of 137 House members want Congress to provide an emergency bailout for the Postal Service. The U.S. by Jesse Nankin, Eric Umansky, Krista Kjellman Schmidt and Scott Klein. Please enable cookies on your web browser in order to continue. Congress and the public have until March 1 to weigh in with public comments. In 2003, Congress and USPS came up with a nifty way of disguising these bailouts. Sept. 18, 2008, 4:36 p.m. EDT. This article USPS is experiencing unprecedented volume increases and limited employee availability due to the impacts of COVID-19. The USPS has lost $78 billion since 2007, but could lose as much as $13 billion this year as the pandemic has crushed mail volume. By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. Significant Dates › Stamps and Postcards › Democrats still want a bailout. Visit FedSmith.com to subscribe to our free email list! The Postal Service’s Strengths . But even for those OK with bailouts and the economy improving, there is absolutely no good argument to bail out the U.S. How Many Postmasters General Has USPS Had? Rejecting the notion of a post office bailout, President Donald Trump insisted that it needs to charge more for eCommerce deliveries — a smart idea that aligns greatly with current postal data. That said, USPS does not take taxpayer money. Tweet . The letter says that the emergency funding is necessary to help the Postal Service “to offset COVID-19 revenue losses and allow improved access to borrowing authority from the Department of the Treasury.”. The current net gain for the government is $107 billion. Share. USPS has lost $78 billion since 2007 despite receiving billions from taxpayers every year. As of May 2019, the USPS had $161 billion in unfunded liabilities and debt. While there are many factors that led to the USPS’ current state of debt, there are two primary reasons why that debt has now balloomed. USPS has lost $78 billion since 2007 despite receiving billions from taxpayers every year. In a similar vein, a GAO report in 2014 determined that the market expectation of bailouts for the largest "too big to fail" banks had been largely eliminated by the reforms. Democrats still want a bailout. That was determined by various methods, especially by comparing the funding cost of the biggest banks with smaller banks that are subject to ordinary FDIC resolution. Even back in the 1970’s, letter delivery was a money losing proposition … May 7, 2020 . The GAO had previously declared the USPS was financially “unsustainable.” A 2019 report found “USPS’s overall financial condition is deteriorating and unsustainable. In truth, many had voted for the relief when a free-standing bill on the same issue passed the House 388-32 Sept. 15. We rely on readers like you to uphold a free press. They decided that USPS had “overpaid” into the Civil Service Retirement System, meaning that it would overpay its pension obligations many years from now if everything held steady at current rates and market conditions. In The News . The Post Office has exclusive access A group of 137 House lawmakers sent a letter last week asking for Congressional leaders to provide a $25 billion bailout for the Postal Service due to the COVID-19 coronavirus pandemic. There have been a couple “bailouts” where congress authorized money to go to USPS, but that has only happened 5 times in over 30 years. Now that number is down to 496,934, … It adds that without an emergency bailout, the Postal Service “could be forced to cease operations.” It notes that the agency has said it expects to lose $22 billion over the next 18 months. may not be reproduced without express written consent from Ian Smith. Postal Service ‘Unsustainable,’ Says GAO. He enjoys writing about current topics that affect the federal workforce. Plenty of industries and corporations receive subsidies and it's certainly valid to argue the validity of any of them but it's not quite fair to call them 'bailouts'. €5 every 4 weeks or just €50 €20 for the first year, €7 every 4 weeks or just €70 €30 for the first year. By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. The Postal Service has racked up $160.9 billion in debt from what’s owed prepaying retiree benefits. In the more than two centuries since Benjamin Franklin was appointed our first Postmaster General in 1775, the Postal Service™ has grown and changed with America, boldly embracing new technologies to better serve a growing population. Use your ← → (arrow) keys to browse. The agency recently told Congress it needs a $75 billion bailout to survive the economic downturn brought on … The agency recently told Congress it needs a $75 billion bailout to survive the economic downturn brought on by the coronavirus shutdowns. The USPS processing plant in Everett, WA handled all of the regional mail from the south border of Snohomish county to the US-Canadian border. The issue now goes to the House, which has yet to consider a separate version of the bill. You also agree to our Terms of Service. Most of the recipient corporations have paid back the government with a positive return. The bailouts of the Great Recession are just the latest examples of a long history of the U.S. government stepping in to ensure the economy keeps on ticking – at home and abroad. #5 – The media LIES! The USPS has lost billions every year for the last 13 years. Except in one case, where a private benefactor had to step in to keep the U.S. government running. Do you agree with the decision to revoke the Schedule F executive order? The ongoing COVID-19 outbreak in the United States has plunged the US Postal Service into dire financial straits, as more Americans than ever rely on post offices to … USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018. The Postal Service has long been struggling financially, going on over a decade of losses totaling billions which were taking place before the coronavirus showed up. In its last complete fiscal year, the USPS had … Despite maintaining a government-sponsored monopoly over the delivery of traditional mail, USPS has lost $75 billion since 2007 and has more than $140 billion in unfunded obligations. The official reason for the recent service changes at the U.S. The 'bailout' talk refers to particular subsidies they receive. We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. The USPS, as of 2019, has 469,934 career employees and 136,174 non-career employees. The Postal Service is legally obligated to serve all Americans, regardless of geography, at uniform price and quality. The nonprofit ProPublica maintains an updated list that currently shows 980 recipients of taxpayer bailouts totaling $632 billion. And like Trump has NOTHING to do with the removal of mailboxes now, Obama had nothing to do with the mailboxes removed then! Postal Service — again. The USPS doesn’t need a bailout; it needs reform. This content is currently not available in your region. In Lane’s accounting, the Postal Service has lost about $6.4 billion a year over the past decade. Another measure which had expired at the end of July has also been restored: the payment of an additional $300 per week for all unemployed people. See our Privacy Policy and Third Party Partners to learn more about the use of data and your rights. See our, Read a limited number of articles each month, You consent to the use of cookies and tracking by us and third parties to provide you with personalized ads, Unlimited access to washingtonpost.com on any device, Unlimited access to all Washington Post apps, No on-site advertising or third-party ad tracking. With a nifty way of disguising these bailouts May 2019, the USPS ’... Have until March 1 to weigh in with public comments is one of the bill Lane ’ first! List that currently shows 980 recipients of taxpayer bailouts totaling $ 632 billion like Trump has NOTHING do. To bail out the U.S content is currently not available in your inbox article not! 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