[Congressional Record Volume 167, Number 132 (Wednesday, July 28, 2021)]
[Extensions of Remarks]
[Pages E832-E833]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    LABOR, HEALTH AND HUMAN SERVICES, EDUCATION, AGRICULTURE, RURAL 
   DEVELOPMENT, ENERGY AND WATER DEVELOPMENT, FINANCIAL SERVICES AND 
   GENERAL GOVERNMENT, INTERIOR, ENVIRONMENT, MILITARY CONSTRUCTION, 
  VETERANS AFFAIRS, TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT 
                        APPROPRIATIONS ACT, 2022

                                 ______
                                 

                               speech of

                        HON. PATRICK T. McHENRY

                           of north carolina

                    in the house of representatives

                         Tuesday, July 27, 2021

  Mr. McHENRY. Madam Speaker, I rise in strong opposition to the $6 
million appropriated in Division D of this bill that will be used to 
carry out postal banking pilot projects across the country. Let's be 
clear, implementing postal banking is one of progressives' top 
priorities.
  In 2018, the previous Administration created a special task force to 
specifically review the Post Office and identify necessary reforms. The 
Treasury Department was directed to release the Task Force's 
recommendations, which it did in its report, ``United States Postal 
Service: A Sustainable Path Forward.''
  The Task Force's recommendations were clear: ``given the USPS's 
narrow expertise and capital limitations, USPS should not pursue 
expanding into new sectors, such as postal banking, the USPS does not 
have a demonstrated competency or comparative advantage, or where 
balance sheet risk would be added.''
  The Post Office agreed. In response to a widely criticized and highly 
unusual report by the United States Postal Service Office of Inspector 
General (OIG), the Post Office made clear that despite any 
recommendations to the contrary from the OIG, the Post Office core 
mission ``is delivery, not banking.'' Postmaster General DeJoy 
reiterated this position earlier this year.
  The Task Force said no. The Post Office said no. Yet progressives 
want it.
  Why? Postal banking is one step closer to overhauling our banking 
system. It's one step closer to creating a public bank option. It's one 
step closer to the federal government knowing everything about a 
consumer's financial history--from each credit card transaction to each 
deposit and withdrawal. Big brother will be watching you.
  Not to mention this would stifle private sector innovation by banks 
and fintech firms that have already shown promise for reaching 
underbanked and rural consumers.
  Progressives argue postal banking is needed to address the decreasing 
number of bank branches and the rise in the number of people without 
access to a checking account or short-term credit. Democrats 
automatically believe that means that the government should provide 
these banking services, including through the Post Office.
  What Democrats fail to acknowledge is branch closures and 
consolidations result from overly burdensome government regulation. It 
can't be solved with more government.
  Postal banking has been tried before. From 1911 to 1967, the United 
States had the ``Postal Savings System,'' run by the USPS' predecessor. 
The system provided savings accounts with interest rates set by the 
USPS and funds deposited in national banks near depositors post office. 
The system failed. Postal banking couldn't compete with private sector 
banking institutions. It did not have the flexibility to meet the needs 
of customers.
  Private sector financial institutions are highly regulated and 
operate competitively and flexibly in a market-based system. The 
ensures consumers' demands for financial products and services are met, 
and they receive the best pricing for them.
  Postal banking is harmful to the financial system and ultimately 
harmful to consumers. It will crowd out private sector financial 
innovation and ultimately fail to reach the very underserved 
communities Democrats claim they want to reach.

[[Page E833]]

  

                          ____________________