Chairwoman McReynolds Remarks
Chairwoman Amber McReynolds began the meeting with the commitment USPS has made to the vote by mail public, especially the rural ones to provide a secure and efficient way for voters to participate. She also shared news of a new committee formed within the board last year to find new ways to innovate and expand their revenue streams. The strategic government services committee is looking for ways to leverage the postal network to generate additional revenue through partnerships with federal and state agencies. The committee is already looking at innovative ways to do that.
While the service performance numbers have improved this quarter chairwoman McReynolds acknowledged that they have not met all of their targets and must continue to strive toward better service.
She noted that new revenue streams and cost cuts are not enough to fix the broken system, USPS needs Congress to help in:
- Fixing the broken system of retirement payment allocations that is forcing the USPS to overpay into the federal retirement fund.
- Expanding the investment opportunities for the USPS personal pension beyond solely treasury bonds.
- Allowing the agency to adopt private sector best practices for addressing workman’s compensation claims.
- Increasing the agency’s $15 Billion borrowing limit that has not been altered in 35 years.
- Ensuring that Congress allocates funding already required under the law to actually pay for services that the postal service provides,
She went on to state that ultimately the fiscal cliff for us is here.
The full meeting recording can be viewed on the USPS About website.
PMG Steiner Remarks
Postmaster General David Steiner addressed the audience with seventeen minutes of remarks, below are some key points of the speech. The full address is transcribed and available here.
“Recent financial and operational gains at the United States Postal Service show progress, but long-term viability requires immediate regulatory flexibility and legislative reform from Congress.”
Operational and Financial Progress
- Net financial results improved by $600 million compared to the same quarter last year, driven by reduced work hours, optimized network processes, and smooth integration of new Regional Processing and Distribution Centers (RPDCs) and Sorting and Delivery Centers (S&DCs).
- Total revenue met growth projections despite secular drops in mail volume, validating that recent price increases and improved service reliability are successfully driving top-line revenue.
- “Obviously, we would like to both grow volumes and grow revenue, but if we can only do one, we want to do it in a way that maximizes total revenue. That is what all companies do.”
Pricing Strategy and Regulatory Friction
- USPS intends to continue raising prices on market-dominant products to maximize total revenue, asserting that volume loss has not crossed the threshold where rate hikes become counterproductive.
- The Postal Regulatory Commission (PRC) was criticized for restricting price increases to once per year—a policy USPS estimates costs them $700 million in lost revenue.
- To offset this, USPS filed a request for density rate authority to execute a January 2027 price increase, which would yield an additional $600 million to $800 million.
Strategic Choices for Congress
- Congress must explicitly define the mission of the Postal Service: either fund uneconomical mandates through federal appropriations to maintain universal service levels, or allow USPS to operate as a self-sustaining business by closing thousands of unprofitable post offices and reducing service.
- USPS advocates for a legislative package that provides a modest federal investment to support the broader $2 trillion postal ecosystem, reforms benefit plans, and expands borrowing authority to address over $20 billion in legacy underinvestment.
Unnecessary Legislative Mandates
- Strong opposition was voiced against a committee-passed bill mandating 83 new ZIP codes, which would cost over $800 million and completely erase the recent $600 million quarterly gain.
- Unfortunately the bill has passed the committee and now moves to the floor.
The PMG stated that unfunded mandates they labor under cannot continue, and a decision by Congress must be made – whether they adjust service or Congress pays the cost of mandates through policy changes and appropriations.
The PMG concluded with “I only wish every American citizen could see what we see every day – the commitment and energy of the 630,000 strong. The drive and determination to accomplish their mission and their devotion to the American people.
I believe when you see that…you would agree that the Postal Service is an institution worth investing in.”
Governor Ron Stroman made remarks after his committee report out stating that the “Delivery for America (DFA) has not met its service targets, or its financial targets” He said that none of the current board where on the board when the Delivery for America (DFA) was approved, but since then they have worked to support it. He said it is time now to move beyond the DFA and under the leadership of PMG Steiner with the help of the DPMG service has continued to improve.
