USPSĀ® is One Step Closer to Postal Reform

July 1, 2016
Author: Renee Bingling
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Following the release of the 2016 Second Quarter Financials by the United States Postal Service® (USPS), Postmaster General, Megan Brennan again called on Congress for “prudent legislative reform”. Recently, a bipartisan discussion draft of postal reform legislation was introduced by The House of Representatives, which includes a number of proposed solutions.

Here are highlights of the proposal:

  • Saturday will not be removed from the USPS’s mailing delivery schedule, as members of Congress believe it would be disadvantageous to the Postal Service since the mailing industry is moving towards seven-day delivery.
  • The Postal service could offer consumer products and services outside the realm of mail delivery and the role of chief innovation officer at the USPS could be created to develop these.
  • Priority factors such as the USPS’s financial stability, the impact of rate increases on users, the reliability of delivery timelines, service standards, among others, are to be considered in the Postal Regulatory Commission’s rate review.
  • The Postal Regulatory Commission has been mandated to complete its full review of the Postal Service’s market-dominant rate system by January 1, 2018.
  • State and national political committees will no longer be eligible for non-profit mail rates.
  • Postal rates for market-dominant products will be adjusted for First-Class™ Mail Parcels, effective August 28, 2016.

In light of these proposals from Congress, Postmaster General, Megan Brennan released the following statement:

“This is an important step towards enacting meaningful postal reform. We will carefully review today’s draft and continue working with our oversight committees in the House and Senate as well as other key stakeholders to pass postal reform legislation that will allow us to continue providing high-quality delivery services to the American people.