The U.S. Postal Service (USPS) just got more than $100 billion in taxpayer assistance through the Postal Service Reform Act. It is licking its chops for billions more as Congressional Democrats and the Biden Administration work to serve up a smorgasbord of new programs and funding schemes.
USPS was once the federal government’s most responsible steward of taxpayer funds, with a focused public service mission, delivering the mail.
Under the 1970 Postal Reorganization Act, USPS is required to be self-supporting with the sales of postage and services covering the costs of operations. And from 1970-2006 it was, operating with a cumulative surplus of $3 billion during this time.
The rise of the Internet and a requirement to set aside funds for future retiree health benefits led to chronic losses at USPS starting in 2007. Some Republicans saw the Postal Service Reform Act (PSRA), signed into law April 6, as the reset button to provide USPS with financial assistance so that it could return to a focused mission and be self-supporting.