Postal Service gets tossed around like a political football and threatens insolvency without more federal aid, the agency continues to report poor results as already lower mail rates have fallen through the floor in the midst of the coronavirus pandemic. | August 22, 2020 06:22 PM The House passed a $25 billion bailout of the financially troubled United States Postal Service that would block reforms or changes to service. The legislation, which the USPS supports, has passed the House with bipartisan support, and a Senate version also has bipartisan sponsors, but no vote has been scheduled yet. And in recent years, the USPS has not made the required payment, citing a lack of available cash. The short answers are (a) politics and (b) it is less than $25 billion. Find information on our most convenient and affordable shipping and mailing services. At the time, it was the latest in a series of financial crises where businesses (or government entities) turned to Uncle Sam to save the … A normally ceremonial role in the process of certifying the Electoral College results could have major implications for Vice President Mike Pence’s political future, as some Republicans look to him to aid their long-shot challenges to the 2020 presidential election. "Prolonged insolvency of USPS will result in a massive taxpayer bailout and ongoing subsidy, or a sudden disruption in mail service, or both," the California Republican said. Maloney’s own primary results were delayed for weeks due to mail-in balloting problems, and her Democratic opponent, Suraj Patel, who was determined to be the loser, is suing to contest the results. Disclaimer. In the fourth quarter, USPS reported that it had lost $9 billion for the full year, despite an increase in package volume. Mike O'Brien May 12, 2020. Amount of coverage can be specified, up to $5,000. Conservatives and centrists are calling on the USPS to slash employees benefits and restrict mail delivery. MY ACCOUNT LOG IN; Join Now | Member Log In. How Andrew Yang changed the politics of direct payments, Raphael Warnock unseats Kelly Loeffler in Georgia Senate runoff; Perdue-Ossoff remains too close to call, Georgia Senate runoffs: Nail-biter in Peach State with both races too close to call, Pennsylvania Senate requests delay of certifying electoral votes, citing 'questionable activities', Trump furiously denies reports Pence told him he cannot overturn election result, Trump attorney suggests Pence rejecting electors would be unconstitutional, Most Georgia runoff voters say the state's presidential election was conducted fairly: Exit poll. Most people don't realize that the service typically runs without any taxpayer subsidies, despite being a part of the government that goes back to before the revolutionary war. Most stock quote data provided by BATS. It's true that no other unit of government or private company that provides retiree health care coverage has to make such pre-funding payments. New York (CNN Business)The House of Representatives on Saturday approved legislation for a bailout for the US Postal Service, which, on paper, has been posting huge losses for years. The biggest drag on its finances is a unique rule that requires the USPS to prepay for workers' retirement benefits for decades into the future. The Republican move to object to the certification of the 2020 election results on Wednesday has some wondering, even hopeful, if the long-shot bid to overturn President-elect Joe Biden's win will lead to the Electoral College's demise. Dozens voted by proxy rather than attending the unusual August Saturday session in person. Pelosi pointed to polls showing 90% support for the USPS, which was first established as a postal system in 1775. While the U.S. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. DeJoy said he was implementing a long-planned realignment of USPS services and put in place changes that were supposed to increase lagging on-time mail delivery. The decline in letter volume has been more than made up by increased package shipments, as consumers make more purchases online. It might feel like first-class postage is going up every few weeks, but the U.S. ), The financial problems have nothing to do with the expected. Share Tweet . President Trump appointed DeJoy, a businessman and prominent GOP donor, to reform the financially troubled USPS, which is on track to lose $9 billion this year and has lost nearly $70 billion over the past 11 years. The 2008 financial market meltdown was not a solo event, although its magnitude marks it for the history books. It is true that there has been a continual decline in traditional first class letters over recent years, as bills and payments shift from traditional mail to online. The coronavirus crisis is pushing the Postal Service towards insolvency. It had positive average annual cash flow of $3 billion over the previous three fiscal years. The Postal Service Emergency Assistance Act (S. 4174) would provide USPS with up to $25 billion to cover revenue losses or operational expenses resulting from the COVID-19 coronavirus. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. The House passed a $25 billion bailout of the financially troubled United States Postal Service that would block reforms or changes to service. USPS needs major reforms, not a bailout Letting the Postal Service become its own private entity has greatest potential for sustainability and effective operations: Opposing view. Factset: FactSet Research Systems Inc.2018. usps bailout history A group of 137 House lawmakers sent a letter last week asking for Congressional leaders to provide a $25 billion bailout for the Postal Service due to the COVID-19 coronavirus pandemic. and they want money for a bailout.... Thread starter limblips; Start date Dec 26, 2020; L. limblips Well-Known Member . Welcome to USPS.com. He said if it wants to maximize profits it would hurt many Americans, particularly in rural areas that are expensive to serve. The Pennsylvania Senate requested a delay in certifying the state's electoral votes on Wednesday, suggesting there were inconsistencies in the election process, President Trump said Tuesday night. "There's no other entity on Earth that does anything like that. Postal Service officials are seeking a $75 billion bailout from taxpayers. With $50B In Debt, US Post Office My Need A Bailout Soon. Patel has not conceded, even though Maloney was declared the winner. The U.S. House of Representatives sent a bill to the Senate that included $25 billion for the Postal Service. ATLANTA — Democratic Senate candidate Raphael Warnock will be Georgia's first black senator after he defeated appointed Republican Sen. Kelly Loeffler in one of his state's critical runoffs. Trump has said that, rather than seeking a bailout, the agency should raise rates. Democrats and U.S. Unless the U.S. Postal Service nevertheless is in need of a bailout. The Post Office is calling for more federal cash and, again, blaming unreasonable retirement funding requirements. Republicans argued the USPS has long needed reform, but Congress has been unable to pass legislation to put it on a financially sustainable path. USPS needs reform, not a bailout By ROSS MARCHAND Dec 18, 2020 Dec 18, 2020; 0; Facebook ... We'd love to hear eyewitness accounts, the history behind an article. Opinion. But in reality, the agency is generating billions in cash. Thousands of ballots in the race were rejected because they were missing a postmark or were postmarked late. “Since that time, it has been as American as apple pie, motherhood, baseball, you name it,” Pelosi said. The letter says that the emergency funding is necessary to help the Postal Service “to offset COVID-19 revenue losses and allow improved access to borrowing authority from the Department of the Treasury.” (What happened after the bailout?) Even though the USPS hasn't been making those payments, it continues to book the theoretical cost as an expense — $16.8 billion since the start of the 2017 fiscal year. A majority of Georgians voting in the runoff election said the presidential election was conducted fairly in the state, although there is a major split between Republicans and Democrats, an exit poll found. Trump said earlier in August if he refuses to provide additional funding for the USPS, mail-in balloting cannot be carried out. Democrats blamed Trump for trying to hobble the USPS, which they said is tied to his effort to manipulate the Nov. 3 election. The History of US Government Financial Bailouts. "Where was the outrage then? insidesources - Dec 9, 2017, 9:54 pm. Republicans called the measure “political theater” and argued that the USPS has suffered from chronic financial problems for many years and is in need of reform, not more money. There was none,” Rep. Bob Gibbs, a Republican from Ohio. That accounts for most of the agency's reported losses. He suggested the Democrat-authored measure could serve as a launching point to a larger deal. January 30, 2012 — Leslie Paige. About two … Legislation has been introduced in the Senate which would provide a $25 billion bailout for the Postal Service, albeit with some strings. “While we always want to check every federal dollar to the scrutiny of what we're getting for it, let us remember that it is a service,” Pelosi said. White House rejects bailout for Postal Service battered by coronavirus. Postal Service needs a bailout, or at least some vision for its future after the coronavirus pandemic. About two dozen Republicans voted in favor of the legislation despite both the GOP leadership and President Trump urging party lawmakers to oppose it. Hundreds, if not thousands, of Floridians will be participating in at least four marches planned Wednesday in Washington as part of President Donald Trump’s “big protest” against the certification of President-elect Joe Biden’s Electoral College victory. ("Utterly absurd," as one lawmaker calls it. Apparently they gave it to a homeless guy on a bicycle to deliver. In addition to retiree health care costs, workers' compensation is another hypothetical cost weighing on USPS finances. PREMO Member. Virtually all of the agency's financial problems stem from a unique, arcane accounting system that no other business or government body follows and that doesn't accurately reflect real costs. For nearly a year, speculation has swirled about whether the novel coronavirus outbreak began in a Wuhan wet market or was actually accidentally leaked from a lab in the Chinese city. Postal Service comes up with a turnaround plan to stop hemorrhaging money soon, taxpayers and consumers likely will be hit with a bailout bill of well in excess of $50 billion. If the USPS doesn’t get a federal boost, supporters say, mail-in … Breitbart News 26 Apr 2012 (AP) Senate votes to slow closing of post offices HOPE YEN Associated Press WASHINGTON The Senate offered a lifeline to the nearly bankrupt U.S. A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of failure bankruptcy.. A bailout differs from the term bail-in (coined in 2010) under which the bondholders or depositors of global systemically important financial institutions (G-SIFIs) are forced to participate in the recapitalization process, but taxpayers are not. Republicans dismissed Democratic arguments in favor of the money. All times are ET. Democrats this summer rejected a White House offer of a $10 billion compromise and said that the $25 billion is backed by USPS's board of governors, which consists of Trump appointees. Trump said he is opposed to universal mail-in voting because it is vulnerable to fraud and other problems. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. … The Federal Reserve stepped in with a loan of $1.75 billion. Congressional Meddling in USPS Makes Bailout More Likely The WasteWatcher. 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