Latest News and Highlights  

USPS Updates on “COVID-19".  The USPS will provide any necessary updates on their website at: https://about.usps.com/newsroom/service-alerts/.

OIG Releases the Semi-Annual Report. The Office of the Inspector General (OIG) has released its semi-annual report to Congress which summarizes OIG activities and performance for the first half of Fiscal Year 2020. So far this year OIG audits have identified $5.8 billion in funds that could be used more effectively, and investigations have led to the recovery of more than $400 million.

USPS Releases Q2 2020 Financial Results On May 8, the U.S. Postal Service reported total revenue of $17.8 billion for the second quarter of fiscal 2020 (January 1, 2020 - March 31, 2020), an increase of $348 million, compared to the same period last year. Compared to the same quarter last year, First-Class Mail revenue increased by $89 million, or 1.4 percent, despite a volume decline of 29 million pieces, or 0.2 percent. This growth was due to one-time mailings associated with the 2020 U.S. Census, otherwise First-Class Mail revenue and volume would have each declined. Meanwhile, Shipping and Packages revenue increased by $386 million, or 7.1 percent, on a volume increase of 12 million pieces, or 0.8 percent, compared to the same quarter last year.

GAO Released its Report on the Postal Service's Business Model On May 7, the Government Accountability Office (GAO) released its report on the Postal Service's business model, which includes recommendations that Congress asses: the level of postal services the nation requires, the extent to which USPS should be financially self-sustaining and the appropriate institutional structure for USPS. In general, the GAO concluded that "USPS’s current business model is not financially sustainable due to declining mail volumes, increased compensation and benefits costs, and increased unfunded liabilities and debt. USPS’s costs continue to rise faster than its revenues, and although USPS has made changes over the years to address these challenges, its efforts have been limited by stakeholder opposition and statutory requirements." 

PRC Analysis of Postal Service's FY2019 Finances On May 7, the Postal Regulatory Commission (PRC) released its Financial Analysis report of the Postal Service’s 2019 financial results. The report was developed using information from the Postal Service’s Fiscal Year (FY) 2019 10-K Statement and measured against its FY 2018 and FY 2019 Integrated Financial Plan, Cost and Revenue Analysis report, Cost Segments and Components report, and the RevenuePiecesand Weight report.  The PRC determined that the financial position of the Postal Service is dire and this is primarily the result of the Postal Service’s failure to make payments to the Retiree Health Benefits Fund, the Federal Employees Retirement System, and the Civil Service Retirement System.

Board of Governors Announces Selection of Louis DeJoy to Serve as Nation’s 75th Postmaster General. On May 6, the Board of Governors of the United States Postal Service announced its unanimous selection of Louis DeJoy to serve as the 75th Postmaster General of the United States and Chief Executive Officer of the world’s largest postal organization. DeJoy is an accomplished business executive with more than 35 years of experience.

Industry Calls for USPS Financial Relief PostCom along with more than 1,000 associations and businesses call on Congressional leadership to provide the financial support needed to ensure that the Postal Service is able to continue its vital mission in the face of the unprecedented pandemic that is already having a profound impact on the mailing industry.  

PRC Releases the 2019 Annual Compliance Determination. On March 25, the Postal Regulatory Commission (Commission) issued its 2019 Annual Compliance Determination (ACD), an assessment of the U.S Postal Service’s rates and service performance in Fiscal Year 2019. The Commission is required to issue its ACD 90 days after the filing of the Postal Service’s Annual Compliance Report (ACR).

Maloney and Connolly Urge Senate to Pass Emergency Funding for Postal Service Facing Bankruptcy On March 23, House Democrats unveiled a stimulus package that would include provisions offered by Maloney and Connolly.  These provisions would: provide a $25 billion emergency appropriation; eliminate the Postal Service’s current debt; and require the Postal Service to prioritize medical deliveries and allow it flexibility to meet crisis conditions.

House Votes to End USPS Prefunding Obligations On February 5, the House of Representatives passed the USPS Fairness Act (H.R. 2382) which, if passed by the Senate and signed by the President, would end retirement prefunding obligations for the Postal Service.