U.S. Postal Service Reform: Issues and Strategies

Congress designed the U.S. Postal Service (USPS) to be a self-supporting government agency. Since 1971, the agency has not relied upon annual appropriations to cover its operating costs. Rather, USPS has funded its operations mostly through the sales of postage and postal products and services. Since FY2007, however, the agency has run more than $40 billion in deficits and has reached its statutory borrowing limit. The agency does receive an annual appropriation of approximately $90 million per year, which amounts to about 0.1% of USPSs $65 billion operating budget. USPSs troubled financial condition has raised concerns about the viability of the agency. Many postal reform bills have been introduced in the 113th and 112th Congresses. These bills have proposed altering many aspects of postal operations, from raising the rates mailers pay to reducing the days of delivery and closing USPS post offices and mail sorting facilities. This book provides background information on the responsibilities, financial challenges and workforce issues facing the U.S. Postal Service (USPS). Additionally, it covers the current strategies and initiatives under development by the USPS and discusses further options for postal reforms.