The statement on USPS communications concerning tax dollars “The Postal Service generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.” is accurate, what they receive is minimal, less than 0.5% of the forecasted $83B in 2026 revenue.
The tax dollars they do receive are through appropriations as required by the Revenue Foregone Act. The Revenue Foregone Act of 1993, was enacted to fundamentally restructure how the federal government subsidizes specific classes of mail. Prior to this act, Congress provided large appropriations to cover the costs of reduced postage for a wide variety of groups, including non-profits, libraries, and local newspapers.
The act both eliminates some congressional subsidies while adding in a few protections.
Ended Non-Profit Appropriations: The act eliminated the use of taxpayer funds to support reduced rates for most non-profit organizations. It also restricted the use of non-profit mail for commercial-style advertising. Shifting costs to mailers.
It provided for Free Matter for the Blind: free postage for materials used by the visually impaired. Overseas Voting Materials: free postage for absentee ballots for military members and U.S. citizens living abroad, and Diplomatic/Consular Mail: free mailing for certain officials on a reciprocal basis.
In addition to funding for the three identified services, Congress acknowledged a cumulative debt of $1.218 billion for revenue forgone shortfalls between 1991 and 1993 as well as projected shortfalls though 1998.
A repayment plan of $29 million annually for 42 years was established to end in 2035. The act provided for no interest in this debt, effectively creating a multi-decade interest-free loan from the USPS to the government. Below shows the status of these monies.
| Component | Amount Requested | Likelihood of Funding |
| Current free mail services | $12.5 Million | High |
| Annual 1993 Act Installments | $29 Million | Moderate |
| Past-Due Catch-up Balance | $382.7 Million | Very Low |
USPS does not receive the full number of appropriations from Congress each year, it is estimated that today the total not paid to the USPS is more than $382.7 million.
The Postal Service plans to ask for the total amount of current year and past due ($424.2 million) from the 2027 appropriations. It is doubtful that they will receive it.
Most people know about the free mail for the blind, and overseas ballots from the 1993 act, but many don’t realize that the Postal Reorganization Act of 1970 that created the independent Postal Service from the Post Office also provided for a “Public Service” bucket, allowing the USPS to ask for the cost of maintaining a national network of post offices in small and rural communities that don’t make enough money to pay for themselves.
The Postal Service is allowed to ask for up to $460 million every year, but it has voluntarily chosen not to request or receive a single dime of this money since 1982.
Why? The USPS says it takes pride in being “self-funded.” By not taking this money, they have saved taxpayers more than $20 billion over the last 44 years.
Effectively shifting the cost to Business Mailers. Think of what they could do with $20 billion?
Deborah Damore is the Head of Postal Affairs at GrayHair Software, bringing over 20 years of expertise in the mailing and logistics market. She specializes in driving success and innovation through enterprise-wide mail management solutions for diverse sectors, including financial services, insurance, direct marketing, and nonprofits.
A dedicated industry advocate, Deborah champions the interests of mailers and shippers nationwide. Her commitment is demonstrated by her leadership roles, including serving as the Industry Co-Chair of the Mailers Technical Advisory Committee (MTAC) and holding board positions with PostCom and the NPPC. She presents regularly at NPF, PCCs, AIMs, and Industry Trade conferences.
Her downtime, while limited, is spent with her growing family, traveling, and reading a good book.
