Business Community Supports New Postal Service Reform Act but Says Additional Protection Against Excessive Rate Increases is Essential

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May 11, 2021 / Comments (0)

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 Coalition for a 21st Century Postal Service says the legislation would put USPS on the path to solvency—as long as rate increases don’t drive mailers out of the system or out of business  

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Washington, D.C. (May 11, 2021) – The Coalition for a 21st Century Postal Service (C21)—an organization of public and private companies, trade associations and other industry groups which rely on the U.S. Postal Service to do business—declared its support for the Postal Service Reform Act of 2021, which will be introduced today by House Oversight Committee Chair Rep. Carolyn Maloney (D-NY) and Ranking Member Rep. James Comer (R-Ky.), yet the group also warns that the legislation should go farther to protect USPS interests. While the legislation most importantly frees USPS from a 2006 Congressional mandate to annually prefund billions of dollars in retiree benefits, C21 urges Members of Congress to strengthen the legislation’s intent to make USPS financially solvent by also including protections against the excessive rate increases highlighted in the recently released 10-year strategic plan, called “Delivering for America.” Art Sackler, executive director of C21 released the following statement on behalf of the coalition’s members:
“The Postal Service Reform Act is a huge step toward delivering the U.S. Postal Service into financial solvency, but it also presents a much-needed opportunity to protect USPS from the threats it now faces from within. By raising prices dramatically on mail and institutionalizing service downgrades, the new 10-year plan—if left unchecked—will hurt large and small businesses, nonprofits, charities, and consumers, as well as the future of the Postal Service.”
“The reality is that USPS receives no taxpayer funding aside from a recent COVID-related grant and businesses generate more than 90 percent of its revenues. Rate hikes triple and quadruple inflation, paired with decreased service, will drive many U.S. companies either out of business or drive them away from using USPS for their business.”
“We urge Congress to prevent USPS from essentially biting the hands that feed it by amending the Postal Service Reform Act to require reconsideration of a recent regulatory decision giving USPS the right to impose much higher rates, and allow investment of some USPS funds for better returns than permitted under current law.”
“With further attention from Congress, this legislation can help guarantee affordable, reliable mail and shipping options for recovering businesses large and small, and more importantly, preserve a lifeline for millions of Americans, especially those living in rural areas.”
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The Coalition for a 21st Century Postal Service (C21) consists of public and private companies and industry associations representing newspapers, advertisers, catalogers, e-commerce, parcels, greeting cards, financial services, telecommunications, insurance, paper, printing, technology, envelope manufacturing, and mail services, which understand the essential role of USPS and want it sustained for the future. C21 broadly represents an industry generating nearly $1.6 trillion in sales and supporting 7.3 million private-sector jobs. Learn more at 21stcenturypostal.org.

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