Postmaster General Louis DeJoy says he is suspending USPS reforms until after the election; reaction of the House minority leader, Kevin McCarthy, in ‘Lou Dobbs Tonight.’
Postmaster General Louis DeJoy on Tuesday announced a 10-year plan for the US Postal Service, which includes longer mail delivery times and cuts in working hours.
DeJoy announced in his testimony on March 11 during a hearing at House Financial Services that the USPS faces a $ 160 billion debt over the next 10 years.
“It is our path to financial sustainability and service excellence,” said DeJoy during a news conference on Tuesday, adding that he believes the federal entity can be financially sufficient, but there is a “growing concern” about its sustainability.
He added that the USPS lost $ 9.2 billion just in 2020 amid the coronavirus pandemic, and its liability costs are exceeding its assets by about $ 162 billion. If USPS problems are not resolved immediately, the service will need a government bailout.
In this image from the video, Postmaster General Louis DeJoy testifies during a virtual hearing before the Senate Government Affairs Committee at the US Postal Service. (US Senate Committee on Homeland Security and Government Affairs via AP)
The USPS expects to operate at breakeven by 2023 under the restructuring plan, which took eight months to set up.
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The plan aims to “erase” the $ 160 billion debt from the service and will include the elimination of its pre-financed pension benefits mandate for retirees, matching the requirement with Medicare, said the postmaster general.
It will also likely result in longer waiting times for delivery of first class mail, higher postage prices and reduced service hours due to reduced delivery steps.
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Retail and delivery director Kristin Seaver explained on Tuesday, however, that only 70% of first-class mail would be affected by longer waiting times, while most of all other shipping options will be delivered on time. implementation.
A new “USPS Connect” platform will aim to make tracking easier for customers.
A United States Postal Service employee delivers with gloves and a mask to Philadelphia, Thursday, April 2, 2020. (AP Photo / Matt Rourke)
More than 50 House Democrats sent a letter on March 18 to President Biden urging him to fire the six individuals on the USPS board of governors, citing “gross mismanagement, delays in delivering mail and conflicts of interest. within the entity.
“During the term of this Board of Governors, the Postal Service was grossly misused by President Trump in an unsuccessful move to influence a presidential election. The Postal Service is currently failing to meet its own service standards with historically low rates of on-time delivery. , and conflicts of interest appear to be a requirement for the service, “wrote the group.
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Republicans accused Democrats of politicizing the organization during and after the 2020 elections, when mail delivery problems affected the service, while millions of people mailed absentee ballots well in advance of November 3.
USPS President Ron Bloom expressed concern on Tuesday that, without Congressional action, the USPS “will continue to deteriorate and our public service mission will be threatened.”
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The 10-year plan “will give the American people the postal service we deserve,” said Bloom, adding that “Congress has a vital role to play” in its restructuring with “legislative relief”.
The president added that he expects Congress to “fully integrate” the postal service retirement plan with Medicare.