Bipartisan legislation introduced last week in the Senate is giving the United States Postal Service a path to modernize and cut costs after its finances and operations.
The Postal Service Reform Act would roll back some of the agency’s financial commitments and aim to improve its service and accountability to the public. The legislation would eliminate a prefunding requirement for retirees and require them to enroll in Medicare. Those two steps alone would save an estimated $46 billion over the next decade for an agency that employed 500,000 workers last year. The Postal Service is the only federal agency that has a prefunding requirement for retirees.