Congress’ $57 billion bailout of the US Postal Service cruised through the House of Representatives last week. Proving, in spite of the organization’s issues, most people want to see the post office maintain its service.
“The US Postal Service is a cherished American institution that provides an essential public service to communities,” says Ellsworth Buck, Vice President of GreatFlorida Insurance, Florida’s top independent homeowners insurance agency.
The bill is intended to resolve the post office’s long-term money problems The measure also intends to keep the Postal Service operating independently despite previous efforts to privatize the organization.
According to The Postal Service, the pandemic only intensified issues with the agency, reporting a loss of $1.3 billion between October 1 and December 31, 2021. If the agency doesn’t receive intervention, it will run out of operational capital by 2023.
Here is what you need to know about the Postal Service Reform Act. The problems hounding the post office, its efforts to cut costs and how they might impact your mail service.
- The bill would retain 6 day a week delivery.
- It would establish a performance dashboard providing real-time status updates on conditions at mailing facilities an on-time metrics for different categories of mail.
- The Postal Service would end non-postal related duties such as issuing passports and hunting and fishing licenses.
- The bill would also eliminate the agency’s debt while saving billions over the next decade.
“Online commerce and the increase in electronic communication have permanently changed The Postal Service, it is only natural sweeping changes take place,” says Ellsworth Buck, Vice President of GreatFlorida Insurance, Florida’s top independent homeowners insurance agency.
Provisions protecting mail-in voting were removed in negotiations. The Postal Regulatory Commission said there won’t be another price increase until this summer, but the Postal Service will likely begin regular price hikes twice a year in 2023.
The Postal Services strategy is expected to slow target delivery times for first-class mail and periodicals by about 30% nationwide. According to The Washington Post, the plan will disproportionately affect Western states and parts of Texas and Florida.