![]() Delivering for America plan provides clear strategies to structure the organization for success and significant progress has already been made.New strategic investments help meet the demands of the 2021 holiday season.Adjusted loss of approximately $1.3 billion for quarter, compared to an adjusted loss of $288 million for the same quarter last year.Postal Service Reports First Quarter Fiscal Year 2022 Results Security controls for commercial mailersįeb.“The Postal Service, however, remains on an unsustainable path, and we will continue to focus on improving operational efficiency and pursuing other reforms in order to put the Postal Service on a trajectory for long-term financial stability. “Access to an additional $10 billion in borrowing authority will delay the approaching liquidity crisis.” DeJoy said in a statement. More funding, whether through the next stimulus package or another form of government intervention, will be needed. Though the Postal Service has received access to the $10 billion loan from the Treasury, one thing remains clear: It’s not enough to sustain the agency in the long-term. The comments created a firestorm of political pushback, including from members of his own party-pushing Trump to recently crawl back on the idea by advocating for voting by mail in Florida. Trump also recently suggested in a tweet the election should be delayed until Americans can vote safely in person, with the claim that waiting could ensure a more accurate election and fight voter fraud. Though he was appointed by a bipartisan board of governors composed of three Republicans and one Democrat, his role as postmaster general has caused speculation that Trump’s criticism of the USPS influenced the appointment.ĭeJoy recently put in place new cost-cutting efforts that have resulted in backlogs of mail across the country, sparking concerns that it might not be able to deliver ballots on time for the November election. In May, shortly after Trump threatened to withhold the $10 billion lifeline from the USPS over it not increasing its package costs-which it can’t do because of caps placed on its pricing under PAEA-Louis DeJoy was named the new postmaster general.ĭeJoy, a businessman from North Carolina, oversees fundraising for this year’s Republican National Convention in Charlotte, North Carolina. Politifact, a fact-checking initiative by the Poynter Institute, found Trump’s claim to be false, and noted that USPS is not losing money on its agreement with Amazon. Trump argued that USPS gives preferential treatment to Amazon with lower rates, stating it’s losing “a fortune” on its deal. President Donald Trump has publicly expressed his disapproval of USPS, calling the agency “a joke” because it won’t raise its package prices, and threatened to withhold its loan from the Treasury if it didn’t do so. The Postal Service has been in the national spotlight in recent weeks after the president publicly stated his disapproval of the agency. The Political Turmoil Over the Postal Service Republicans, who favor a significantly less costly stimulus package, have pushed back on the provision, claiming the loan granted by the CARES Act should be enough to keep the service running throughout the pandemic. The Democratic proposal for a second stimulus relief package-called the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act-would include a $25 billion grant to the Postal Service. ![]() In April, the USPS told Congress it would run out of money by September and requested $75 billion in emergency funding. According to a recent agreement, the Postal Service can borrow the money if it determines that it will not be able to fund operating expenses due to the coronavirus pandemic. The Coronavirus Aid, Relief and Economic Security (CARES) Act authorized the Postal Service to take a $10 billion loan from the U.S. Recognizing the USPS’s dire financial situation, the federal government in March sought to intervene. Its already-distressed volume could decrease another 50% over the next few months due to the pandemic, according to the Wall Street Journal. First-class mail, the agency’s most profitable class of mail, has seen a 44% volume decline since 2006. The coronavirus pandemic has put additional strain on an already struggling Postal Service. The GAO even requested the National Bankruptcy Conference assess if USPS could use bankruptcy or other restructuring processes to get a handle on its massive debt.
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