Lawmakers May Ask USPS to Delay Rate Hike Until Next Year
Thursday, July 8, 2021
FRANKFORT, Ky. - Some lawmakers say they want the Postal Service to delay until next year a mail price hike slated for the end of this summer. The move would raise the price of first-class mail from 55 to 58 cents.
The letter sent this week to Postmaster General Louis DeJoy comes as Congress considers major postal-reform legislation.
Earlier this month the House Committee on Oversight and Reform unanimously passed the Postal Service Reform Act of 2021, which would restructure employee pension and health-care obligations.
Former New York Congressman and Chairman of the Package Coalition John McHugh said without the bill, there will be serious consequences for package affordability.
"It would be a stunning blow to those particularly small businesses who rely upon the Postal Service for the timely delivery of their packages to their customers," said McHugh. "And it would be a stunning blow to customers, who obviously would have to foot the bill."
The bill is estimated to save the Postal Service around $40 to $50 billion over the next decade. If passed, it would be the first major overhaul to the Postal Service in fifteen years.
McHugh added that USPS especially is critical for rural states such as Kentucky, where private carriers don't always deliver.
"The ability for the Postal Service to get back on the right path is predicated in large measure on that integrated delivery network," said McHugh, "and the ability and the promise of going to every household six days a week."
He said if the changes aren't enacted, the Postal Service could lose $160 billion over the next ten years.
Earlier this year, DeJoy said the agency could run out of cash by the end of 2022 without major reforms.
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