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Call for reform

Brennan testifies before lawmakers

Postmaster General Megan J. Brennan
Postmaster General Megan J. Brennan testified about postal reform legislation during a U.S. House Oversight and Reform Committee hearing April 30.

Postal legislative and regulatory reform is urgently needed to restore USPS to financial stability, Postmaster General Megan J. Brennan told congressional leaders April 30.

Since 2007, the Postal Service’s total mail volume has declined by 31 percent. The organization has streamlined its operations, restructured its network, improved productivity and made other changes, but it isn’t enough to offset the continuing decline in mail usage.

“As our country grows by more than 1 million new delivery points each year, the cost of our network continues to increase,” Brennan said.

“We are delivering less mail to more addresses — which means there is less revenue to pay for mandated costs. And although we have grown our package business, that rate of growth has slowed due to increased competition.”

The Postmaster General addressed the House Oversight and Reform Committee, where she thanked its members for their focus on postal reform. She also expressed appreciation that the president’s task force recognized the importance of USPS to the nation’s economy, both as a service provider and as an employer.

Brennan said the Postal Service, led by its Board of Governors, is developing a 10-year business plan to restore the organization to financial stability. This plan will be in addition to legislative and regulatory reforms necessary in the short term, including integrating Medicare into postal retiree health plans, restoring half an exigent price surcharge that ended in 2016, and providing additional product flexibility.

“Enactment of these provisions would immediately put the Postal Service in a stronger financial position,” Brennan said.

The Postmaster General’s written testimony is available on the USPS Newsroom site.

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