The Postal Regulatory Commission has requested that Congress clearly define the universal service obligation (USO) of the United States Postal Service (USPS), which requires affordable mail delivery to all citizens. Acting Chairman Robert Taub testified before a House oversight subcommittee, emphasizing the need for clarity in USPS's operational requirements to help reduce costs for the financially struggling agency.
Taub stated, "The singular action the commission believes is critical that Congress enact: define the universal service obligation." He suggested that a clear definition would help establish what the country needs from the USPS and create a funding system to support it. Taub also highlighted the need for Congress to reconsider various operational questions, such as delivery frequency and service standards.
While Taub urged Congress to address the USO, he challenged Postmaster General David Steiner's claims about the USPS's imminent financial bankruptcy. Taub argued that recent changes, including the suspension of $200 million biweekly payments to the Federal Employees Retirement System, have provided the USPS with additional financial stability. He noted that the commission's actions could potentially offer the agency $15 billion or more in relief through 2030, delaying the reported insolvency and the risk of halting mail delivery.
Taub's assessment contrasts with earlier statements from Steiner, who warned that the USPS could run out of cash within a year without significant changes. In response to the suspension of pension payments, a USPS spokesperson previously indicated that the measure would provide only a limited financial buffer and urged Congress to expand the agency's borrowing authority and implement necessary policy changes.
