Statements on Introduced Bills and Joint Resolution

Floor Speech

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Mr. President, I rise today, along with my colleague Senator Hassan, to introduce the Military Spouses Retirement Security Act. This bipartisan bill would help spouses of active duty service members save for retirement by expanding access to employer-sponsored retirement plans.

According to the Employee Benefits Research Institute, American households face a retirement savings gap of $3.7 trillion. The Center for Retirement Research estimates an even larger gap of $7.1 trillion. When asked about their retirement preparedness, only 57 percent of Americans believe they will be able to live comfortably in retirement.

There are many reasons why American households struggle to save for retirement, including the shift away from employer-based ``defined benefit'' plans and rising health care and long-term care costs. Longer life spans increase the risk of outliving retirement savings. The economic and health impacts of the COVID-19 crisis are also posing a threat to retirement security.

Spouses of active duty service members face an additional hurdle to saving for retirement. According to the Department of Defense, about one-third of military service members experience a permanent change of station move every year. When a service member moves, their spouse often relocates with them, putting their own career on hold.

Following a move, a military spouse may face periods of unemployment, where they are not able to participate in an employer-sponsored retirement plan. A 2017 survey found that the unemployment rate for active duty military spouses was 24 percent, more than five times the rate for the U.S. population as a whole at that time.

When military spouses find a new job, they often work part-time, despite preferring full-time work, or are only able to spend a few years with their employer before moving again. Their limited hours and short tenure often preclude them from being eligible to receive employer contributions to their retirement plan or from being fully vested in their plan.

Increasing access to employer-sponsored retirement plans would improve the financial security of many military spouses. The bill I am introducing today would help address this need by providing a tax credit to small employers who provide military spouses with accelerated eligibility for retirement plan participation, employer contributions, and vesting.

My bill would allow small employers--those with up to 100 employees-- to claim a tax credit of up to $500 per year per military spouse. The credit would be available for three years per military spouse. The amount of the credit would be equal to $200 per military spouse, plus 100 percent of all employer contributions for that spouse, up to $300.

To receive the tax credit, small employers must make a military spouse immediately eligible for retirement plan participation within two months of hire. Upon plan eligibility, a military spouse must be eligible for any matching or non-elective contribution available to a similarly situated employee with at least two years of service, and must be 100 percent immediately vested in all employer contributions.

Military spouses are the unsung heroes of our country's national defense. They often put their professional lives on hold, threatening their long-term retirement security. The Military Spouses Retirement Security Act would help by encouraging small employers to provide military spouses with accelerated access to retirement plans and employer contributions. I urge my colleagues to support this bill.

Thank you, Mr. President.

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Mr. President, I rise to introduce the Postal Service Emergency Assistance Act. I am pleased to be joined by my colleague, Senator Feinstein, in sponsoring this legislation that would ensure the United States Postal Service survives the COVID-19 pandemic and advance the conversation needed to put it on a path to long-term solvency. I would also like to recognize Senators Daines, Jones, and Tester, who have joined as original cosponsors.

Throughout its 245-year history, the United States Postal Service has played a vital role in bringing our country together and moving our economy forward. The Postal Service allows us to remain connected with family and friends and helps small businesses reach their customers around the country.

The Postal Service is also the linchpin of a $1.6 trillion mailing industry that employs more than 7.3 million people. These jobs are as varied as paper manufacturers, publishing, printing, catalog companies, online retailers, and transportation providers.

The COVID-19 pandemic has changed our daily lives in fundamental ways, and the Postal Service is needed now more than ever. USPS is a lifeline for Americans across the country, particularly seniors and others living in rural areas. In a Harris poll conducted in May, Americans ranked the USPS as the most ``essential'' company amid the pandemic.

The agency's dedicated employees, like the rural letter carrier in Columbia Falls, go to work each day, facing increased risk as they continue to ensure reliable delivery of needed prescriptions, safety- net benefits, and other critical services that might otherwise be unavailable.

While COVID-19 has underscored the essential nature of the Postal Service, it has also caused significant declines in first-class and marketing mail revenues and increased costs, as the Postal Service has taken additional steps to protect its employees and the public from the virus.

Even with substantial increases in package volumes during the first phase of the pandemic, USPS estimates that COVID-19 will increase net losses and accelerate its cash crisis. If Congress does not act, the Postal Service warns it could run out of money for payroll within the next year. This would threaten its ability to continue providing essential services to the public, as well as support its 630,000 employees, including 3,300 in Maine.

I am committed to ensuring this vital institution survives the COVID- 19 crisis and is positioned to support economic recovery. The legislation we are introducing today would provide the Postal Service with up to $25 billion in emergency funding to cover COVID-19- related losses and other operational expenses.

The legislation also includes several safeguards to ensure these funds are used only for their intended purpose. The funds would be appropriated to a separate ``Postal Service COVID-19 Emergency Fund'' rather than the general Postal Service Fund, and these funds would only be available until September 30, 2022. Prior to accessing these funds, the Postal Service would be required to certify in its quarterly and annual reports to the Postal Regulatory Commission that the expenditure of any such funds is necessary to cover losses or expenses resulting from the COVID-19 pandemic. The Postal Service would also be required to prioritize the purchase of personal protective equipment for its employees and conduct additional cleaning and sanitizing of its facilities and delivery vehicles.

In addition to providing emergency relief, this legislation would clarify the terms and conditions of the $10 billion loan that Congress provided to the Postal Service as part of the Coronavirus Aid, Relief, and Economic Security or CARES Act.

Although the COVID-19 emergency is contributing to the Postal Service's financing challenges, it did not cause all of its financial problems. According to the Government Accountability Office, USPS lost about $78 billion from fiscal year 2007 through 2019. This is why the legislation we are introducing today would also require the new Postmaster General and the Board of Governors to present to Congress a plan to ensure the long-term solvency of the Postal Service.

Growing up in Aroostook County, I experienced the essential nature of the United States Postal Service every day. As Chairman of the Senate Aging Committee, I've also seen the indispensable role that the Postal Service plays for our nation's seniors. The Postal Service Emergency Assistance Act would ensure the Postal Service is able to continue fulfilling its essential mission, while also providing for responsible stewardship of taxpayer funds and laying the groundwork to put the Postal Service on a path to long-term viability. I urge my colleagues to support this bill.

Thank you, Mr. President.

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