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US Postal Service Appeals For Bailout

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Earlier this week the United States Postal Service (USPS) asked lawmakers to add funding for the constitutionally established service within the next bailout bill; otherwise the postal service runs the risk of running out of cash by the end of September. 

The USPS has been even further weakened as the country continues to deal with coronavirus; struggling to stay afloat after decades long financial troubles. However, the postal service is finding it difficult to acquire the funding they need. 

“Based on a number of briefings and warnings this week about a critical fall-off in mail across the country, it has become clear that the Postal Service will not survive the summer without immediate help from Congress and the White House,” Reps. Carolyn Maloney (D-NY), and Gerry Connolly (D-VA), said in a statement

The recently passed coronavirus relief bill had initially included a $13 billion grant for the postal service, instead the final version of the bill gave them a $10 billion loan that they would have to pay back. A loan the postal service is still waiting to receive from the Treasury Department. 

The postal service and its board of governors are expected to ask Congress for $50 billion bailout and $25 billion in loans. This cash would be used to help offset the postal services losses, as well as help modernize the service. Right now, USPS officials have stated they expect to lose ~$2 billion a month. 

Trump and his administration have expressed their intent to prevent any kind of bailout funding for USPS should lawmakers look to include it in any upcoming stimulus package. The president has repeatedly blamed online retailers for the postal service’s problems.   

“We told them very clearly that the president was not going to sign the bill if [money for the Postal Service] was in it,” a Trump administration official told the Washington Post. “I don’t know if we used the v-bomb, but the president was not going to sign it, and we told them that.”

Currently there are more than 31,000 Post Offices across the county, with more than 650,000 employees. Around 500 employees have tested positive for the coronavirus, with another 6000 in self-quarantine due to potenital exposure. 

Alex Took
Alex is a staff writer for Financial News where he focuses primarily on politics, business, and government.

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