US Postal Service finally gets a 'reset' — here's what's in a massive new reform law

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Advocates for the U.S. Postal Service have secured a major victory in Washington that, they say, will keep the agency afloat and address service delays affecting millions of mail recipients in recent years.

President Joe Biden has signed the Postal Service Reform Act into law, after two years of widespread complaints about mail service slowdowns under Postmaster General Louis DeJoy and a persistent fear the agency could even run out of cash.

The bill has various provisions to ensure on-time delivery and to eliminate the possibility of service deductions. It also restructures the agency's balance sheet to allay fears of funding shortages.

“I think it's an extremely important piece of legislation because the public Postal Service belongs to everybody in the country, and serves everybody in the country,” said Mark Dimondstein, president of the American Postal Workers Union, which represents more than 200,000 postal employees and retirees.

SOLVANG, CA - FEBRUARY 15: United States Postal Service tow truck prepares to haul away two broken down delivery vehicles on February 15, 2022, in Solvang, California. Because of its close proximity to Southern California and Los Angeles population centers, Santa Barbara County's Wine Country has become a popular weekend getaway destination for millions of tourists. (Photo by George Rose/Getty Images)
A United States Postal Service tow truck prepares to haul away two broken down delivery vehicles in California in 2022. (George Rose/Getty Images)

The bill had bipartisan support, passing the House 342-92 and the Senate 79-19. The National Association of Letter Carriers, another key representative of postal employees, has also praised the bill.

We are “finally delivering for the Post Office,” Senate Majority Leader Chuck Schumer said recently as the bill neared the finish line in the Senate. “[It] is providing the Postal Service a much-needed reset.”

"The post office is central to our economy," President Biden said Wednesday before signing the bill, adding that the bill is "setting the postal services on a more sustainable and stable financial footing."

The bill vows not to cut back on service, guaranteeing that mail will be delivered six days a week.

The new law has other provisions around increased transparency and accountability when it comes to on-time mail delivery. To measure progress, the bill will require the USPS to set up an online "dashboard" that will be searchable by ZIP code to show consumers how long it takes to deliver letters and packages.

It “will help put the USPS on a long-term, stable financial footing that will allow our post offices to provide the level of service Americans expect,” said Senator Lisa Murkowski (R-AK) on the Senate floor recently.

‘This ridiculous, onerous and draconian pre-funding mandate’

The bill restructures the Postal Service's balance sheet by eliminating a requirement that the agency pre-fund retirees' health care and benefits. That mandate has contributed to 14 years of red ink at the Post Service, and repealing it will save an estimated $49 billion over the coming decade.

“This bill, which has been 15 years in the making, will finally help the Postal Service overcome burdensome requirements that threaten their ability to provide reliable service to the American people,” said Senator Gary Peters (D-MI) in a statement.

Senator Gary Peters (D-MI) rallies in support of the United States Postal Service (USPS)  outside of a post office in Old Redford, Michigan, U.S., August 20, 2020. REUTERS/Rebecca Cook
Senator Gary Peters (D-MI) rallies in support of the United States Postal Service (USPS) outside of a post office in Old Redford, Michigan (REUTERS/Rebecca Cook)

Some Republicans have opposed the bill, often arguing that it’s fiscally shortsighted. “This bill doesn’t reduce costs — it just shifts them from one unfunded government program to another unfunded government program,” Senator Rick Scott (R-FL) has said.

The fate of Louis DeJoy

Postmaster General DeJoy has praised the bill, but his job security has been an open question since Biden’s inauguration. He became a lightning rod during Donald Trump’s presidency, especially as the U.S. experienced mail delays ahead of the 2020 election, which was largely conducted using voting by mail.

Biden doesn’t have the power to directly fire DeJoy — a Trump supporter and donor — but the Postal Board of Governors does and the Senate has advanced two of Biden’s nominees to be postal governors.

DENVER, CO - MARCH 16: United States Postmaster General Louis DeJoy addresses soon to be Postmasters before they take oath of office during a pledge ceremony at the General Mail Facility on March 16, 2022 in Denver, Colorado.  Thirty Postmasters from around Colorado took the oath of office in a special ceremony to become postmasters for post offices all over Colorado. United States Postmaster General Louis DeJoy made a surprise visit to the facility and led them in the traditional Oath of Office to swear them into their new positions.
U.S. Postmaster General Louis DeJoy during a pledge ceremony for new local postmasters in Denver (Helen H. Richardson/MediaNews Group/The Denver Post via Getty Images)

If they are confirmed in the weeks ahead, it would increase Biden's influence over DeJoy’s fate.

For now, both Dejoy and postal advocates can celebrate the new bill. Dimondstein says that the bipartisan support for the bill “underscores just how much the people, the country support and need and want a vibrant public Postal Service.”

Ben Werschkul is a writer and producer for Yahoo Finance in Washington, DC.

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