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White House readies veto of USPS funding bill

White House readies veto of USPS funding bill
Posted at 7:49 PM, Aug 21, 2020
and last updated 2020-08-21 20:17:17-04

The White House said late Friday it is prepared to veto a bill proposed by House Democrats to infuse the cash-strapped Postal Service with funds.

The White House’s announcement comes a week after President Donald Trump said he supported funding the Postal Service with Congressional funds. Last week marked a period of the Postal Service removing machines and collection boxes, as mail service has slowed for many across the country.

The bill introduced by House Democrats would, in addition to providing funds, require the post office to maintain its current level of service, not close any locations and would lift a prohibition of overtime. Those measures would be in effect through at least the end of the year.

According to the Congressional Budget Office, the bill would provide an estimated $25 billion in funding for the post office.

The White House pushed back in a policy memo, claiming that reports of slowdowns are an “overreaction.”

“This bill misses an opportunity to improve USPS,” the White House said.

“USPS does not need a $25 billion bailout. It needs reforms that will return it to a trend of long- term financial self-sufficiency,” the White House added.

The Trump administration said that USPS has enough funds to operate through August 2021. But during his Senate testimony on Friday, Postmaster Louis DeJoy said that the post office is losing $9 billion on an annual basis.

“Without change our losses will only increase in the years to come,” DeJoy said.

The USPS has historically been self-sufficient. But declining volume and increased pension costs have cut into the service’s bottom line. But the post office remains a lifeline for many who rely on mail for medicines, important documents, and other supplies.