“NO” on the 21st Century Postal Service Act of 2011

This week, the Senate may vote on the 21st Century Postal Service Act of 2011 (S. 1789). The bill would include some minor reforms, but includes a $41 billion bailout and represents a huge missed opportunity to reform the United States Postal Service (USPS).

Instead of taking the suggestions of USPS, who wanted to end Saturday delivery and allow the workforce to be trimmed by 220,000 employees, S.1789 continues to mandate Saturday delivery for two years and forces the USPS to follow lengthy procedures in order to close processing facilities.

S. 1789 lowers the amount the USPS must contribute towards the current unfunded liability of its future retirees’ health benefits (that must otherwise be paid by taxpayers) and transfers “surplus” retirement contributions back to the USPS that may only be temporary and highly dependent on long-term economic assumptions.  The total amount of debt relief provided to the USPS by S. 1789 compared with current law is $41 billion.

The USPS is failing and in desperate need of change. By delaying reform, Congress is making it much harder to restructure the USPS.

Heritage Action opposes S.1789 and will include it as a key vote on our scorecard.

This key vote was originally issued on January 30, 2012.

Related Links:
Heritage Action’s Scorecard
You’ve Got (No) Mail: Is the End Near for the Postal Service?
Senate Postal Reform: A Lot of Money, Little Change
The Postal Crisis Easily Explained: How to Avoid a Taxpayer Bailout