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‘Urgently needed’

PMG testifies on postal reform legislation

U.S. Postmaster General Megan J. Brennan
PMG Megan J. Brennan testifies before the U.S. House Oversight and Government Reform Committee Feb. 7. Image: C-SPAN

The new bipartisan postal reform bill is “urgently needed,” PMG Megan J. Brennan told congressional leaders Feb. 7.

“[The legislation] is fiscally responsible and enables the Postal Service to invest in the future and to continue to provide affordable, reliable and secure delivery service to every business and home in America,” the PMG said.

Brennan testified before the House Oversight and Government Reform Committee.

She told the committee that USPS has streamlined its operations, restructured its networks, reduced the size of its workforce and improved productivity. This has allowed the organization to achieve annual savings of approximately $14 billion.

While these actions have helped, the Postal Service also needs legislative reforms to avoid ongoing net losses, Brennan said.

She endorsed the new bill, which would require Medicare to be fully integrated into postal retiree health plans.

“It is simply a matter of fairness to enable the Postal Service, and our employees, to fully utilize the benefits for which we have paid,” Brennan said.

Among other reforms, the legislation would also provide some additional product flexibility, encourage innovation and restore half the exigent rate increase that ended last year.

If enacted, the bill would save USPS an estimated $26 billion in cost reductions and new revenue over five years.

Favorable resolution of the Postal Regulatory Commission’s 10-year pricing system review and continued aggressive management actions are also needed to return the Postal Service to financial stability, the PMG said.

Brennan’s written testimony is available in the online newsroom.

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