May 13, 2021

Bipartisan postal reform legislation introduced and advances in House

The Postal Service Reform Act of 2021 (H.R. 3076), a bipartisan bill that aims to provide financial and operational stability to the Postal Service, was introduced by the House Committee on Oversight and Reform Chairwoman Carolyn Maloney (D-NY) and Ranking Member James Comer (R-KY) on May 11.

Today, H.R. 3076 advanced out of committee on a voice vote with no amendments. The legislation addresses both of NALC’s top priorities:

• The repeal of the mandate that the Postal Service pre-fund decades’ worth of health benefits for its future retirees, which was enacted through the Postal Accountability and Enhancement Act (PAEA) of 2006, embracing the bipartisan USPS Fairness Act (H.R. 695 and S. 145).
• A reform of the Federal Employees Health Benefit Program (FEHBP) to maximize participation in Medicare once active postal employees (as of January 1, 2023) retire and reach age 65. Annuitants as of January 1, 2023 will be given the choice of whether to remain in the existing FEHBP system or participate in the postal version of the program that requires enrollment in Medicare Parts A and B – and retirees over the age of 65 who have chosen not to enroll in Medicare Part B will be given a one-time opportunity to do so with no late-enrollment penalty.  NALC also successfully lobbied to ensure exceptions to the requirement to enroll in Medicare for those covered under other insurance arrangements (such as the VA) and for those who live in a place where there are not Medicare-participating providers.

Because they have jurisdiction over the Medicare program, the bill will be referred to the House Committee on Ways and Means and the House Committee on Energy and Commerce for possible amendments before it can be debated by the entire House of Representatives. As we digest the language and work with these committees, NALC will provide more updates for members in the future.

H.R. 3076 also includes language that requires the Postal Service to maintain an “integrated” network for both mail and package delivery, six-days-a-week. If this bill becomes law, this mandate would supersede the language NALC has had to fight to maintain in the appropriations process every year since 1983.

In addition, the bill: requires the Postal Service to provide semi-annual reports to Congress on the implementation of its 10-year strategic plan; creates a public dashboard using nationwide delivery metrics to track delivery performance; directs the Postal Service to use the most efficient means to transport mail, likely moving from air to ground; mandates a Postal Regulatory Commission (PRC) review of competitive and non-competitive products and a study of nationwide processing efficiency of flats (magazines and catalogs); provides the PRC with independent budget authority through the Postal Fund, preventing it from being directly impacted by sequestration/shutdowns; provides a special postage discount for newspapers; and consolidates the Postal Service’s and the PRC’s Inspectors General into a single office.

“This landmark legislation will make foundational reforms and add transparency to ensure the Postal Service provides the high quality of service Americans expect and deserve,” said Chairwoman Maloney. “Ultimately, this bill will preserve and strengthen the Postal Service, one of our nation’s most vital and respected institutions.”

“The American people rely on the U.S. Postal Service for everything from bills to receiving prescriptions to staying in touch with their families,” said Ranking Member Comer. “The Postal Service Reform Act, coupled with Postmaster General DeJoy’s business reform plan, will help put USPS on the road to fiscal stability, and make it more efficient and sustainable for generations, and ensure continued service to the American people.”

Recognizing that members of Congress had priorities that would not be addressed in the underlying bill, Chairwoman Maloney also introduced a secondary measure, the Postal Service Improvement Act (H.R. 3077), which was also considered and advanced out of committee today. This second bill includes a variety of provisions, including: ballot tracking measures for votes cast by mail; paid parental leave for postal employees; Merit Systems Protection Board (MSPB) rights for managers and supervisors; an $8 billion appropriation for the Postal Service to electrify 75 percent of its vehicle fleet and to build charging stations at postal facilities;  a requirement that the Postal Service maintain January 2021 service standards on first-class mail; a pilot program to study using postal employees to conduct the Census;  and a measure to allow members of Congress to inspect postal facilities at their discretion. Because many of these provisions lack broad bipartisan support, the second bill approved by the Committee is not likely to be considered by the full House of Representatives.

While H.R. 3076 is bipartisan, that alone will not be enough to see it through to the President’s desk. But it is a good start. Currently, Senate Homeland Security and Government Affairs Chair Gary Peters (D-MI) and Ranking Member Rob Portman (R-OH) are beginning discussions on a Senate companion bill.

As the legislation progresses in the House and Senate, NALC will need the full engagement of letter carriers to help educate members of Congress on how this legislation will protect the employees and the service we provide. Keep an eye out for more information here and on the NALC Member App. Members are encouraged to install the app on their smartphones to receive updates when legislation is released and when it moves in the halls of Congress.