The letter says that the emergency funding is necessary to help the Postal Service “to offset COVID-19 revenue losses and allow improved access to borrowing authority from the Department of the Treasury.”. The USPS funds itself with it’s own products. Democrats still want a bailout. And like Trump has NOTHING to do with the removal of mailboxes now, Obama had nothing to do with the mailboxes removed then! Despite maintaining a government-sponsored monopoly over the delivery of traditional mail, USPS has lost $75 billion since 2007 and has more than $140 billion in unfunded obligations. The Post Office has exclusive access The USPS recently enacted the largest price hike ever for stamps, and the market has borne the cost — which it kind of has to since the post office has a monopoly on your mailboxes. We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. © 2021 FedSmith Inc. All rights reserved. That isn't bailouts. The current net gain for the government is $107 billion. The USPS processing plant in Everett, WA handled all of the regional mail from the south border of Snohomish county to the US-Canadian border. All rights reserved. Do you agree with the decision to revoke the Schedule F executive order? History of U.S. Gov't Bailouts. You also agree to our Terms of Service. Visit FedSmith.com to subscribe to our free email list! #5 – The media LIES! The USPS has lost $78 billion since 2007, but could lose as much as $13 billion this year as the pandemic has crushed mail volume. Over the past several weeks, the bill was modified more than a dozen times, adding new restrictions on closings and cuts to service that rural-state senators said would hurt their communities the most. See our, Read a limited number of articles each month, You consent to the use of cookies and tracking by us and third parties to provide you with personalized ads, Unlimited access to washingtonpost.com on any device, Unlimited access to all Washington Post apps, No on-site advertising or third-party ad tracking. How Many Postmasters General Has USPS Had? Benefits are not the only issue. While there are many factors that led to the USPS’ current state of debt, there are two primary reasons why that debt has now balloomed. The issue now goes to the House, which has yet to consider a separate version of the bill. To some extent, the USPS has been dragged under financially in ways private sector companies would not be. Even back in the 1970’s, letter delivery was a money losing proposition … Phil Shiver, The Blaze. In truth, many had voted for the relief when a free-standing bill on the same issue passed the House 388-32 Sept. 15. The 'bailout' talk refers to particular subsidies they receive. By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. As of May 2019, the USPS had $161 billion in unfunded liabilities and debt. See our Privacy Policy and Third Party Partners to learn more about the use of data and your rights. Second, like many government entities, the USPS has overpromised and undersaved when it comes to employee retirement benefits. Now that number is down to 496,934, … Plenty of industries and corporations receive subsidies and it's certainly valid to argue the validity of any of them but it's not quite fair to call them 'bailouts'. They decided that USPS had “overpaid” into the Civil Service Retirement System, meaning that it would overpay its pension obligations many years from now if everything held steady at current rates and market conditions. Many believe such price hikes exceeding the Consumer Price Index are not permitted under the 2006 Postal Accountability and Enhancement Act, the major law now governing the Postal Service. Sort of. The Postal Service has long been struggling financially, going on over a decade of losses totaling billions which were taking place before the coronavirus showed up. We hope you enjoy exploring our rich history. We rely on readers like you to uphold a free press. The new European data protection law requires us to inform you of the following before you use our website: We use cookies and other technologies to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests. The USPS was making billions per year before they were hamstrung by the 2006 Postal Accountability and Enhancement Act (PAEA), signed into law by GW Bush. May 7, 2020 . That said, USPS does not take taxpayer money. Ian Smith is one of the co-founders of FedSmith.com. The ongoing COVID-19 outbreak in the United States has plunged the US Postal Service into dire financial straits, as more Americans than ever rely on post offices to … Share. Most of the recipient corporations have paid back the government with a positive return. By a 62-37 vote, senators approved a measure which had divided mostly along rural-urban lines. Share. At the end of 2019, the postal workers' pension fund had … He enjoys writing about current topics that affect the federal workforce. © 2021 Ian Smith. Subscribe to our free email list to get our news updates in your inbox. In its last complete fiscal year, the USPS had … The Postal Service is legally obligated to serve all Americans, regardless of geography, at uniform price and quality. In the more than two centuries since Benjamin Franklin was appointed our first Postmaster General in 1775, the Postal Service™ has grown and changed with America, boldly embracing new technologies to better serve a growing population. In 2003, Congress and USPS came up with a nifty way of disguising these bailouts. Democrats still want a bailout. To illustrate the point more visibly, the history of the number of postal employees over time shows that the workforce peaked in 1999 with 797,795 workers. USPS has lost $78 billion since 2007 despite receiving billions from taxpayers every year. The Postal Service has long been struggling financially, going on over a decade of losses totaling billions which were taking place before the coronavirus showed up. The Postal Service has racked up $160.9 billion in debt from what’s owed prepaying retiree benefits. Since Trump took office, the Pentagon’s annual budget has grown by $130 billion. The agency recently told Congress it needs a $75 billion bailout to survive the economic downturn brought on by the coronavirus shutdowns. Not even two decades later, it can’t. Please enable cookies on your web browser in order to continue. Every government service has to be funded. It adds that without an emergency bailout, the Postal Service “could be forced to cease operations.” It notes that the agency has said it expects to lose $22 billion over the next 18 months. The USPS has lost billions every year for the last 13 years. Sept. 18, 2008, 4:36 p.m. EDT. Use your ← → (arrow) keys to browse. Basically, you’re being fed shit by a couple posters here. >There have >been many businesses that had to adjust their practices or close. The bailouts of the Great Recession are just the latest examples of a long history of the U.S. government stepping in to ensure the economy keeps on ticking – at home and abroad. A group of 137 House lawmakers sent a letter last week asking for Congressional leaders to provide a $25 billion bailout for the Postal Service due to the COVID-19 coronavirus pandemic. There have been a couple “bailouts” where congress authorized money to go to USPS, but that has only happened 5 times in over 30 years. The U.S. This content is currently not available in your region. The official reason for the recent service changes at the U.S. But even for those OK with bailouts and the economy improving, there is absolutely no good argument to bail out the U.S. USPS has lost $78 billion since 2007 despite receiving billions from taxpayers every year. Tweet . NO! USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018. Prev 1 of 11 Next. Learn about the position of Postmaster General, how many there have been, and how much money they make . By clicking “I agree” below, you consent to the use by us and our third-party partners of cookies and data gathered from your use of our platforms. That was determined by various methods, especially by comparing the funding cost of the biggest banks with smaller banks that are subject to ordinary FDIC resolution. €5 every 4 weeks or just €50 €20 for the first year, €7 every 4 weeks or just €70 €30 for the first year. The GAO had previously declared the USPS was financially “unsustainable.” A 2019 report found “USPS’s overall financial condition is deteriorating and unsustainable. Postal Service ‘Unsustainable,’ Says GAO. DOJ Launches Online Portal for Reporting Civil Rights Violations. We appreciate your patience. Congress and the public have until March 1 to weigh in with public comments. Except in one case, where a private benefactor had to step in to keep the U.S. government running. The nonprofit ProPublica maintains an updated list that currently shows 980 recipients of taxpayer bailouts totaling $632 billion. In 2006, the Postal Accountability and Enhancement Act (PAEA) ordered the USPS to pre-fund employee retiree health benefits for the next 75 years. by Jesse Nankin, Eric Umansky, Krista Kjellman Schmidt and Scott Klein. It closed in 2013 as part of a planned consolidation. Another measure which had expired at the end of July has also been restored: the payment of an additional $300 per week for all unemployed people. The agency recently told Congress it needs a $75 billion bailout to survive the economic downturn brought on … Postal Service — again. USPS is experiencing unprecedented volume increases and limited employee availability due to the impacts of COVID-19. The USPS doesn’t need a bailout; it needs reform. A group of 137 House members want Congress to provide an emergency bailout for the Postal Service. Since Benjamin Franklin became our country’s first Postmaster General in 1775, there have been 75 individuals who filled this position. The Postal Service’s Strengths . In a similar vein, a GAO report in 2014 determined that the market expectation of bailouts for the largest "too big to fail" banks had been largely eliminated by the reforms. In The News . The USPS, as of 2019, has 469,934 career employees and 136,174 non-career employees. The federal government has been pretty much hands off on funding the USPS since 1971. This article Significant Dates › Stamps and Postcards › may not be reproduced without express written consent from Ian Smith. Rejecting the notion of a post office bailout, President Donald Trump insisted that it needs to charge more for eCommerce deliveries — a smart idea that aligns greatly with current postal data. 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