Battle Over Postal Service Funding Leaves Way forward for Mail in Limbo

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Battle Over Postal Service Funding Leaves Way forward for Mail in Limbo

Its roots stretch again virtually 250 years to the Second Continental Congress. People constantly charge it their favourite federal company, and wi


Its roots stretch again virtually 250 years to the Second Continental Congress. People constantly charge it their favourite federal company, and with a piece pressure of greater than half 1,000,000 scattered throughout the nation, it employs extra individuals than any authorities entity exterior the navy.

However as Washington begins to battle over the subsequent spherical of coronavirus aid funding, the US Postal Service, for a lot of probably the most acquainted face of the federal authorities, has landed improbably on the middle of one of the bitter political disputes over who must be rescued, and at what value.

But after nearly reaching a bipartisan deal for a multibillion dollar bailout in the last coronavirus rescue package in late March, Republicans and Democrats have sharply diverged over whether to provide a lifeline. Now, the fight over the future of the Postal Service has spilled onto the campaign trail, increasingly freighted by deeply held disagreements about labor rights, the role of government versus private enterprise in providing basic services, and voting access.

On one side is President Trump and his Treasury secretary, Steven Mnuchin, who have largely looked at the agency’s worsening bottom line as a problem of its own making.

“The Postal Service is a joke,” Mr. Trump declared recently, announcing that he would not support any additional financial support for the agency unless it raised package rates by 400 percent. The drastic increase, which most independent analysts say would ultimately hurt the Postal Service, appears to be aimed chiefly at Amazon, whose chief executive, Jeff Bezos, owns The Washington Post, and whom Mr. Trump regards as a nemesis.

It was the White House that intervened in March, nixing a bipartisan plan to provide $13 billion to the Postal Service. And administration officials have made it clear that they will not sign off on any financial support — either in the form of a loan or direct funding — unless the Postal Service agrees to rate increases, labor concessions and other changes that would shrink the agency’s footprint, potentially saving money and benefiting private competitors like FedEx and UPS.

“We have to fight for the post office,” Speaker Nancy Pelosi of California said on Thursday, highlighting the contours of the emerging fight.

“Their goal has always been to privatize, to make a profit off the Postal Service for private purposes,” Ms. Pelosi added, referring to Republicans. “We are for the public having the Postal Service meet the public interest, not some special interest.”

In many ways, the position is a natural one for Democrats. The Postal Service has been an engine of growth for the black middle class, and is one of the last strongholds of organized labor in the country, both critical constituencies for the modern Democratic Party. A functioning Postal Service is also a prerequisite for establishing a national vote-by-mail program for the elections in the fall, a priority for Democrats that some Republicans oppose.

But the issue has not always broken down neatly along partisan lines. Congressional Republicans who represent rural areas where the daily mail is an economic and medical lifeline have been some of the agency’s biggest supporters, and they could face political consequences for embracing the president’s position.

But in Alaska, the mail is a vital commodity, delivering goods to remote areas that commercial delivery companies do not serve. On a tele-town hall with constituents recently, Mr. Sullivan said he would defend the Postal Service against any potential cuts.

“It’s a lifeline for so many of our communities,” he said. “We are defenders of all of these programs because you can’t be treated differently just because you’re an American and you live in a village without a road.”

With the pandemic unfolding in the heat of an election and Mr. Trump largely defining his party’s position, Democrats increasingly believe the issue could give them a political edge. Particularly at a time when Americans stuck at home have become hyper-conscious of their dependence on the mail, public polling suggests bipartisan majorities are in favor of a rescue deal and may even punish lawmakers who stand in the way.

Richard Trumka, the president of the A.F.L.-C.I.O., said the Postal Service’s ubiquity, particularly in rural America, means both parties have traditionally had a vested interest in maintaining its financial stability.

“The Postal Service is like Social Security — it’s beloved by everybody,” Mr. Trumka said in an interview. “If the president or anyone else is seen as trying to debilitate or eliminate the Postal Service, they’ll pay a huge political price.”

In a recent email blast, Tom Perez, the chairman of the Democratic National Committee, said Republicans were trying “to dismantle” the Postal Service, and with it, the jobs of hundreds of thousands of postal employees, as well as the connections between rural, poor and tribal areas to the economy.

The Postal Service was plagued by financial woes long before the Covid-19 pandemic, having lost billions of dollars a year for the past decade, and bipartisan proposals for reform have kicked around Congress for years. The agency, which makes its money on the sale of postage and other products that have declined in popularity since the advent of email and online billing, has not relied on taxpayer funding for decades, instead issuing debt as losses have mounted.

Unlike a private company, it does not have the option of cutting back operations to shrink costs, and a requirement by Congress that it pre-fund a health benefits program for its employees has fueled billions of dollars in debt.

But the coronavirus pandemic has exacerbated the Postal Service’s problems. Even with package deliveries to homebound Americans up sharply, total mail volume is down by roughly a third. The agency projects those numbers could keep dropping, leading to a loss of $23 billion over the next 18 months.

Democrats and union leaders have argued those changes would put the agency on a road to privatization. David C. Williams, the vice chairman of the Trump-appointed board of governors and a former postal inspector general, was so uncomfortable over the talks with the Treasury Department that he resigned last month, concerned about the politicization of an organization that is normally unaffected by partisanship, according to people familiar with his thinking.

“Simply throwing more of taxpayers’ hard-earned money at them won’t fix their problems,” Mr. Jordan said.

Some other influential Republicans who had been supportive of a bailout appear to be backing away, accusing both the Postal Service and Democrats of making the situation sound more dire than it is.

On Wednesday, Senator Ron Johnson, Republican of Wisconsin and the chairman of the committee overseeing the Postal Service, requested a more detailed account of its finances. Mr. Johnson, who had previously supported allocating funds to prop up the agency, said that data received by his staff suggested actual revenues from mid-March to mid-April were down less than 6 percent compared to the year before.

“That was a far cry from the 30 percent that U.S.P.S. had been publicly projecting,” Mr. Johnson wrote. “Although I have yet to receive official data to confirm this, my understanding is that U.S.P.S. revenues have recently improved — so much so that this April’s revenues were close to equal to those in April 2019.”

Alan Rappeport contributed reporting. Kitty Bennett contributed research.



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