USPS Postal Reform Update from our CEO Tim Johnson

On February 14th, the Senate held a hearing on postal issues. As expected the USPS announcement that it is planning to end Saturday delivery dominated the discussion.  (Note: Impact supports the USPS’s desire to end Saturday delivery; however, you should know that that plan is on shaky legal ground and it may be prevented by Congress.)
Thus far, just two members of Congress have said positive things about the USPS announcement, House Oversight Committee Chairman Darrell Issa (R-CA) and Ranking Republican on the Senate Homeland Security Committee Tom Coburn (R-OK).  Public statements by other members of Congress have been negative.
The shaky legal ground:
The USPS legal opinion (found here) is largely predicated on the fact that the Continuing Resolution (CR) is scheduled to expire in March.  ‘Continuing Resolution’ is congressional speak for the continuation of last year’s appropriations bill for this fiscal year.  The CR contains a “rider” that prohibits the USPS from eliminating Saturday delivery.  If the CR expires in March, so will the restriction to the eliminate Saturday delivery; however, Congress will almost certainly pass a new CR or some other form of appropriation to keep the government running.  If that occurs and the USPS continues toward the elimination of Saturday delivery then the dispute will likely find itself in federal court.

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