From NAA Public Policy News, April 2005

Action on Postal Reform Legislation Expected

Postal reform legislation has been reintroduced in the House (H.R. 22) and the Senate (S. 662), and committee action on the legislation is expected in mid-April. Both bills in the House and Senate contain a provision that would repeal the requirement for an escrow account. USPS management has suggested that it might withdraw or modify the postal rate case if legislation were to be enacted.

The Senate legislation does not contain the negotiated service agreement provisions that NAA objected to in the last Congress. NAA believes both reform bills provide fundamental reforms that would increase the transparency and oversight of postal operations while creating a modern ratemaking system.

Postal legislation, however, has a long way to go before enactment, as the Bush administration continues to raise objections to two major provisions in both bills: (1) the repeal of the escrow account and (2) the shifting of pension obligations for the military time served of postal employees from the USPS to the U.S. Treasury. Both of these provisions would have a significant impact on the federal budget deficit.