U.S. Rep. Lawrence Cements Congressional Legacy with House Passage of Bipartisan Postal Service Reform Act

Press Release

Today, U.S. Representative Brenda L. Lawrence (MI-14), a 30-year veteran of the United States Postal Service and member of the Committee on Oversight and Reform, applauded the House passage of H.R. 3076, the Postal Service Reform Act of 2022. This bill comes after the Postal Service incurred its fourteenth consecutive net annual loss in 2020. Rep. Lawrence was instrumental in crafting this legislation and getting it through committee and the House of Representatives.

"After several congressional terms and many versions of this legislation, I am beyond thrilled that the House passed the bipartisan Postal Service Reform Act. I'm the only member of Congress who has had a 30-year career in the United States Postal Service, and reforming it has been a top priority of mine since arriving to Washington D.C.," said Rep. Lawrence. "If we don't make every effort to affirm the Postal Service's commitment to its performance, it will chip away at the foundation of what makes this agency so great. This legislation will lay the groundwork for the Postal Service to continue serving Americans for decades to come while supporting our dedicated Postal Service employees. I strongly urge the Senate to pass this important, bipartisan piece of legislation."

The Congressional Budget Office estimates that the Postal Service Reform Act would save the federal government nearly $1.5 billion over ten years. The main provisions of this bill include:

Medicare Integration: This bill requires future Postal Service retirees, who have been paying into Medicare their entire careers, to enroll in Medicare. Currently, roughly a quarter of postal retirees do not enroll in Medicare even though they are eligible. This means the Postal Service is stuck paying far higher premiums than any other public or private sector employer. By more closely integrating Medicare, the Postal Service estimates it could save approximately $22.6 billion over 10 years.
Eliminating the Requirement to Prefund Retiree Health Benefits: This bill eliminates the requirement that the Postal Service pre-fund retiree health benefits for all current and retired employees for 75 years in the future. No private company or other federal government entity is required to comply with such a burdensome requirement. The Postal Service estimates this provision would drastically reduce its prefunding liability and allow it to save roughly $27 billion over 10 years.
Service Performance Transparency: This bill requires the Postal Service to develop a public-facing, online dashboard with national and local level service performance data updated each week to provide additional transparency and promote compliance with on-time delivery of mail.
Non-Postal Services: This bill allows the Postal Service to enter into agreements with State, local, and tribal governments to provide non-commercial property and services that provide enhanced value, do not detract from core postal services, and provide a reasonable contribution to Postal Service institutional costs.

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