[Congressional Record Volume 164, Number 100 (Friday, June 15, 2018)]
[Extensions of Remarks]
[Pages E854-E855]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       INTRODUCTION OF H.R. 6076

                                 ______
                                 

                        HON. GERALD E. CONNOLLY

                              of virginia

                    in the house of representatives

                         Friday, June 15, 2018

  Mr. CONNOLLY. Mr. Speaker, with fourteen legislative weeks left in 
2018, it is imperative the Congress take up legislation to provide the 
United States Postal Service with the legislative relief that it needs 
to stabilize its finances, modernize its business model, and return to 
solvency in order to continue to provide dependable service to millions 
of Americans across this country who rely on it.
  Last year, the House Committee on Oversight and Government Reform 
approved the Postal Service Reform Act of 2017 (H.R. 756) by voice 
vote. Throughout the process, the Committee worked with the United 
States Postal Service, private sector stakeholders, and the postal 
unions in order to report a bill that has near unanimous support. 
Unfortunately, shortly after the Oversight and Government Reform 
Committee approved H.R. 756, then-Chairman Chaffetz retired from the 
House of Representatives, leaving the bill without a primary sponsor.
  That is why I am pleased to join my friend Representative Mark 
Meadows to re-introduce the Postal Service. Reform Act (H.R. 6076) with 
the language that the Oversight and Government Reform reported out last 
year. Like last year's bill, H.R. 6076 would sustain six-day delivery, 
which provides vital services to millions of Americans and thousands of 
businesses across the nation. The bill would require the Postal Service 
to establish and follow a rigorous, empirical, and transparent process 
when evaluating whether to close postal retail or processing 
facilities, while empowering the Postal Regulatory Commission with the 
authority to review and overturn closure decisions. Additionally, the 
bill would authorize the Postal Service to modernize its business model 
through innovative service enhancements, such as co-locating retail and 
government services with postal facilities. This reform would not only 
boost revenue, but increase convenience to everyday Americans who would 
benefit from being able to simultaneously renew their drivers licenses 
while mailing a package. Most importantly, the bill would fix a problem 
Congress created by providing the Postal Service with relief from the 
onerous and unnecessarily high prepayment requirements for the Postal 
Retirement Health Benefit.
  The Postal Service plays an important role in the lives of every 
American and a critical role for our country's economy. Unlike private 
companies who pick and choose their customers, set their own rates, and 
can decide to deliver mail and packages only where it is financially 
beneficial, the Postal Service has a universal service obligation to 
deliver mail six days a week to every part of America--rural or urban--
for the same price. In fact, companies such as FedEx and UPS use the 
Postal Service to do ``last mile'' delivery for many packages in rural 
areas. And for many Americans, the Postal Service is the only option 
for them to pay their bills or receive communication and packages, 
including medicine and goods that they may not otherwise have access 
to.
  Postal Service operations are solely funded by sales revenue from 
postal products and services. However, the Postal Service faces two 
obstacles as it attempts to find financial stability and even become 
profitable. First, with the rise of electronic communications, the 
Postal Service has experienced a drastic decline in mail volume. In 
2008, the USPS delivered 202.7 billion pieces of mail. In each year 
since 2008, mail volume has declined and in 2017, that number had 
fallen to 149.5 billion pieces of mail. Unfortunately, the Postal 
Service mail volume is likely to continue to decline and it is 
difficult to imagine a scenario where mail volume will go back to the 
same levels as last decade.
  The main driver of the Postal Service's dire financial situation is 
the requirement that it, unlike any other federal entity, is required 
to prepay all employee health care benefits, 75 years into the future. 
The Postal Service first raised concerns about the aggressive payment 
plan mandated under the Postal Accountability and Enhancement Act (P.L. 
109-435) in 2010. That problem was not created by the U.S. Postal 
Service, the Postmaster General, or its hardworking men and women. 
Rather, it was Congress that imposed this short-sighted policy 
decision. For that reason, the responsibility falls on Congress to 
restore financial stability to the Postal Service.
  Without Congressional action to relieve the Postal Service of the 
pre-funding requirement or a drastic change in mail volume, the Postal 
Service has reported a financial loss for 11 straight years. In fiscal 
year 2017, the Postal Service posted a loss of $2.7 billion. More 
recently, the Postal Service reported a net loss of $1.3 billion for 
the second quarter of fiscal year 2018 alone, more than doubling its 
losses in the same period a year ago. With declining revenues and 
increasing unfunded liabilities, the Postal Service is being forced 
into a downward spiral of cutting services, losing revenue, further 
downsizing, and eventual bankruptcy.
  However, there is room for hope. While mail volume is declining, the 
Postal Service's package delivery service has been one of the few areas 
of growth in Postal Service revenues, experiencing double-digit 
increases in recent years and accounting for nearly 30 percent of its 
operating revenue in fiscal year 2017. In fact, the demand for the 
Postal Service to deliver packages for Amazon, FedEx, UPS, and other 
retailers is so great, that package delivery has expanded to seven 
days--a competitive edge for the Postal Service. The Postal Service's 
package delivery services not only help mitigate losses in other areas, 
but provide the American people with low-cost services for retail 
purchases.
  After more than 9 years and many stalled efforts, leaders in Congress 
have arrived at a bipartisan framework for postal reform. The effort 
enjoys support from industry, labor, Democrats, and Republicans--not an 
insignificant feat. Is it perfect? Did every stakeholder get

[[Page E855]]

exactly what they wanted? Of course not. But tackling big issues 
demands collaboration and compromise. While it is easy to identify the 
many challenges that ail the Postal Service, missing from almost any 
serious diagnosis is the fundamental albatross around the Service's. 
neck. Some would advocate that there is a simple, easy, and perfect 
solution to restore the Postal Service. They offer their own purity 
test, impervious to new information, pragmatic considerations, and all 
context, for what must be included in a reform bill. It would be 
foolish to let perfect be the enemy of the good. Rather than re-
litigate the discrete disagreements that guarantee its demise, our 
coalition has a worthy proposal that can save the Service. That should 
be the focus.

                          ____________________