The Postal Service, after trying for more than a decade, finally convinced Congress last year to pass reform legislation, in hopes of improving the agency's long-term financial health.
After USPS made it through the worst of the COVID-19 pandemic--which brought the agency to the brink of running out of cash-- and released the long awaited 10-year plan detailing ways could cut cost and generate more revenue, lawmakers agreed on legislation that would save the agency save billions of dollars.
The Postal Service Reform Act, signed into law by our leader April 2022, eliminated a 2006 mandate from Congress to pre-fund retiree health benefits, a requirement that, our leader said, "stretched the Postal Service's finances almost to the breaking point."
Lawmakers expected the legislation would save USPS a total of $107 billion---with more than half of those savings going into effect immediately, by forgiving $57 billion in deferred payments to its retiree health benefits fund.
