Postal Reform Act of 2022 Passes – On It’s Way to the Senate

Finally, some good news! The House passed the Postal Reform Act of 2022 on Tuesday.

This bill addresses the finances and operations of the U.S. Postal Service (USPS). It requires the Office of Personnel Management to establish the Postal Service Health Benefits Program for USPS employees and retirees and provides for coordinated enrollment of retirees under this program and Medicare. The bill repeals the requirement that the USPS prepay (annually) future retirement health benefits, something no other government entity was required to do. The bill would eliminate much of USPS debt and restructure some of its operations, opening the door to the first overhaul of the agency in 15 years while providing major financial relief.

The bill will also allow the USPS to establish a program to enter into agreements with an agency of any state, local, or tribal government, and with other government agencies, to provide certain nonpostal products and services such as collecting water bills or basic Department of Motor Vehicle functions as long as they reasonably contribute to the costs of the USPS and meet other specified criteria.

Postal Reform also requires the USPS to develop and maintain a public dashboard to track service performance and must report regularly on its operations and financial condition.

The Postal Regulatory Commission must annually submit to the USPS a budget of its expenses. It must also conduct a study to identify the causes and effects of postal inefficiencies relating to flats.

After passing in the House on Tuesday, the new measure now heads to the Senate, where it already has bipartisan support and a passing vote is expected soon.

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