Senator Carper Statement on U.S. Postal Service Financial Losses
WASHINGTON – Today, U.S. Senator Tom Carper (D-Del.), top Democrat on the Senate Homeland Security and Governmental Affairs Committee, released the following statement in response to the announcement that the U.S. Postal Service (USPS) reported a net loss of $2 billion in the second quarter of fiscal year 2016. This report comes exactly one month after the Postal Service faced the first rate decrease in nearly a century with the expiration of the court-mandated emergency surcharge put in place after the Great Recession – the only measure keeping the Postal Service from financial collapse over the last two years.
“Despite a rise in revenue and shipping volume, the Postal Service is, yet again, reporting significant losses. The agency’s latest financial report reiterates a hard truth: due to long-term financial challenges and constraints placed on it by Congress, the Postal Service is unable to raise enough revenue to cover its costs and continues to suffer unsustainable losses that threaten its long-term viability. Without a legislative fix, these losses will inevitably get worse, especially after the Postal Service was forced to lower rates last month for the first time in nearly a century.
“Inaction is no longer an option. Congress must face reality and work quickly to stabilize this lynchpin of a $1.4 trillion mailing industry that employs more than 7 million Americans. We must finally tackle the tough issues in order to ensure that this critical institution is competitive and solvent for years to come. I call on my colleagues in both the House and Senate to come together and stabilize the Postal Service’s financial situation and stop the downward spiral before it’s too late.”
Senator Carper introduced the Improving Postal Operations, Service, and Transparency Act of 2015, last September. iPOST reflects the views of a broad range of stakeholders and offers a compromise solution to the difficult issues that Congress and the Postal Service have struggled with for years. The bill includes a comprehensive package of reforms that would place the Postal Service on firm financial footing, stabilize and improve service performance, allow for the development of new products and services, and enhance transparency. The bipartisan bill is cosponsored by Senators Jerry Moran (R-Kan.), Claire McCaskill (D-Mo.), Roy Blunt (R-Mo.), and Susan Collins (R-Maine).