The issue of postal reform is set to return to the US House of Representatives
tomorrow, as the Oversight and Government Reform Committee examines proposals
for legislation to rescue the Postal Service.
The hearing under Chairman Darrell Issa has been scheduled following the
release of legislative proposals from both the House Republicans and the House
Democrats. The proposals seek ways to pull the US Postal Service back from the major losses it has been generating since 2006.
Last year USPS recorded a $15.9bn annual loss, although $11bn of this was defaulted payments that were not made. This year USPS is expecting to lose about $7.5bn, while the federal agency’s debt remains at the legal maximum of $15bn.
USPS needs to cut its operating expenses by more than $20bn to return to a balanced situation, but needs Congressional action to achieve half of this, according to executives.
The US Congress failed to reach agreement on postal reforms last year, with the House of Representatives proving the key hurdle to legislation being passed.
