The U.S. Postal Service has struggled with its balance sheet for years, with losses of $160 billion predicted over the next decade. It currently has more than $200 billion in liabilities, nearly three-quarters of which stem from a requirement for it to pre-fund retirees’ health-care costs. This mandate was established in 2006 when the agency was profitable, but falling revenue — largely due to competition from modern technology and declining first-class mail use — has meant the Postal Service has been unable to keep up with payments.
The overhaul bill would drop the mandate and require retirees to enroll in Medicare when eligible. The Congressional Budget Office projects this would save taxpayers $1.5 billion over 10 years. The bill would also erase $57 billion of the agency’s liabilities; establish an online dashboard for delivery times; allow it to offer non-postal services such as hunting and fishing licenses; and mandate service at least six days a week.