Dear Chairman Comer, Ranking Member Raskin and Members of the Committee:
The American Consumer Institute respectfully submits this letter for your consideration as this Committee embarks on its important work to ensure the efficiency, effectiveness, and accountability of the federal government and all its agencies.
Of particular interest to the nation’s consumers is the current and future state of the U.S. Postal Service. During the 117th Congress, this Committee had a central role in shaping the Postal Service Reform Act (The PSRA), which approved a $107 billion financial overhaul of the long-beleaguered U.S. Postal Service.[1]
The primary features of the enacted law were to shape USPS into “an independent entity that receives zero tax-payer dollars for operational expenses,” while the law also “restores financial sustainability, avoiding the need for further assistance.”[2]
Despite the inundation of taxpayer resources to support the Postal Service, the agency remains mismanaged from both a delivery performance and financial standpoint. Leaders of the U.S. Senate and House Representatives have censured the agency for its pervasive delivery delays. For 2023, the Postmaster General projects a $4.5 billion net loss, and has also conceded that leadership will make “a lot of mistakes” in the process of guiding the USPS.[3]
Our organization believes that any managerial “mistakes” following the Postal Service’s sought-after legislation are entirely inexcusable. We call upon this Committee to oppose any measure that would direct any additional taxpayer resources to the USPS, particularly as the Postal Service continues to divert revenues from its core mission of delivering letters to funding competitive services, including delivering packages and banking services.
Revenues from USPS products, and the recent taxpayer funding, must be directed towards reasonable service quality and returning the agency to fiscal sustainability, as was promised by the law. Nearly all evidence suggests that this is not happening. We urge this Committee to seek an understanding of all root causes of the agency’s abuses.
Many of our concerns are also expressed in a recent opinion piece, “Should we worry about the Postal Service?” which I authored on December 9th, in The Post and Courier (Charleston, SC).[4] A copy of this article is included below to accompany this letter.
Thank you for your consideration and our organization looks forward to this Committee prioritizing meaningful action to correct the missteps of the PSRA. This Committee must work to establish new frameworks that will ensure the agency is genuinely held accountable.
Respectfully submitted,
Steve Pociask
President of the American Consumer Institute
[1] “Senate passes $107 billion overhaul of USPS, lauding mail agency’s role in pandemic response,” Washington Post, March 8, 2022
[2] “The U.S. Postal Service Supports the Postal Service Reform Act: H.R. 3076,” USPS, Government Relations
[3] “USPS Prepares for a ‘Year of Implementation,’ and the Shaping of Louis DeJoy’s Legacy,” Government Executive, December 29, 2022
[4] “Commentary: Should we worry about the Postal Service?” The Post and Courier, December 9, 2022