Postal service

Biden signs bipartisan bill to overhaul Postal Service

(NewsNation) – President Joe Biden on Wednesday signed a bill that will revamp the finances of the United States Postal Service and guarantee mail delivery six days a week going forward.

The Postal Service Reform Act received overwhelming bipartisan support when it passed the Senate by a 79-19 vote in March. Along with Biden’s signing, this becomes the largest restructuring of the Postal Service’s balance sheet in more than a decade and is expected to save the USPS tens of billions of dollars.

“Today we enshrine in law our recognition that the Postal Service is fundamental to our economy, to our democracy, to our health and to our very sense of who we are as a nation,” Biden said Wednesday.

The biggest change will require postal workers to enroll in Medicare when they become eligible — reversing 2006 legislation that required the USPS to pre-fund retiree health care costs each year. This change alone is expected to save the Postal Service up to $50 billion over the next decade.

Without congressional action, the USPS said it would have run out of money to cover operating expenses. as soon as Next year. The Postal Service has posted net losses of more than $90 billion since 2007. In February, it posted a quarterly net loss of $1.5 billion.

Proponents of the bill say it won’t completely solve the Postal Service’s financial problems, but it’s a step in the right direction.

“It will strengthen the public postal service, which is what the people of the country need — to solve some of the financial problems. It won’t solve all the challenges, but it’s a huge step forward. WHO SAID THAT?

The legislation will also modernize the postal service, creating an online dashboard that will be searchable by postcode to show how long it takes for deliveries.

Those who oppose the bill fear the legislation will impose additional burdens on Medicare and add to the federal deficit.

“This bill doesn’t cut costs, it just moves them from one unfunded government program to another unfunded government program,” said Florida Sen. Rick Scott, one of 19 Senate Republicans to vote. against the bill.

But USPS rejected this argument and pointed out that postal retirees are simply receiving benefits for which they have already paid taxes.

Proponents of postal reform say the USPS is an essential service, especially for underserved and hard-to-reach communities. And unlike private companies like UPS and FedEx, the Postal Service cannot ignore unprofitable deals.

“It’s not perfect, there’s nothing here. But it’s much better than the alternative and it gets the Postal Service back on track,” said Sen. Rob Portman (R-Ohio).

The new legislation comes as major players in the logistics industry, including Amazon, UPS and FedEx, continue to feel the economic tailwinds caused by surging e-commerce sales.

Amazon has unveiled its future plans to get some packages to customers in 30 minutes or less, even using delivery drones to do so.

Whether the Postal Service will keep pace with other logistics titans remains to be seen. USPS generates almost all of its revenue from stamps and package deliveries.

The signing of the bill came the same day the Postal Service announced plans to raise the cost of a first-class Forever stamp from 2 cents to 60 cents in July.

The Associated Press contributed to this report.