Postal Service Emergency Assistance Act

II 116TH CONGRESS 2D SESSION S. 4174 To provide emergency appropriations to the United States Postal Service to cover losses related to the COVID–19 crisis and to direct the Board of Governors of the United States Postal Service to develop a plan for ensuring the long term solvency of the Postal Service. IN THE SENATE OF THE UNITED STATES JULY 2, 2020 Ms. COLLINS (for herself, Mrs. FEINSTEIN, Mr. DAINES, Mr. JONES, and Mr. TESTER) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To provide emergency appropriations to the United States Postal Service to cover losses related to the COVID– 19 crisis and to direct the Board of Governors of the United States Postal Service to develop a plan for ensur- ing the long term solvency of the Postal Service. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Postal Service Emer- 4 gency Assistance Act’’. 5 SEC. 2. FINDINGS. 6 The Congress finds the following: 7 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4174 IS (1) By law, the Postal Service operates as ‘‘a 1 basic and fundamental service provided to the people 2 by the Government of the United States’’ and must 3 serve rural, suburban, and urban areas throughout 4 the United States. 5 (2) The Postal Service is a lifeline for busi- 6 nesses and consumers across the United States, es- 7 pecially those in remote and rural areas of the coun- 8 try, delivering business correspondence, educational, 9 cultural and scientific information, critical prescrip- 10 tions and medications, household items, and com- 11 mercial goods with affordable, reliable service not 12 fewer than 6 days per week. 13 (3) The Postal Service helps small businesses 14 stay connected with their customers no matter where 15 they are located or where their customers live. 16 (4) Since 1970, the Postal Service has been 17 charged with operating as a self-sustaining entity 18 and its operations are funded from postage paid for 19 mail and shipping and not primarily by taxpayer 20 funds. 21 (5) The Government Accountability Office re- 22 ports that the Postal Service has lost approximately 23 $78,000,000,000 from fiscal year 2007 through 24 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4174 IS 2019 due primarily to declining mail volumes and 1 rising costs. 2 (6) Package delivery volumes have more than 3 doubled since 2010, but the Postal Service faces 4 competition in this area. 5 (7) The Postal Service is not on a sustainable 6 path and needs reform to be viable over the long 7 term. 8 (8) Reforms must be focused on the long term 9 solvency of the Postal Service while ensuring the 10 greatest benefit to the public and 630,000 employees 11 of the Postal Service. 12 (9) By law, the authority for operation and 13 strategic direction of the Postal Service, an inde- 14 pendent establishment of the executive branch, is 15 delegated to the Board of Governors of the Postal 16 Service, including the Postmaster General. 17 (10) On May 6, 2020, the Board of Governors 18 of the Postal Service selected Louis DeJoy as the 19 75th Postmaster General of the United States. 20 (11) The new Postmaster General should be 21 given the opportunity to review the operations and 22 finances of the Postal Service and, in coordination 23 with the rest of the Board of Governors of the Post- 24 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4174 IS al Service, propose a plan to ensure its long term vi- 1 ability. 2 (12) At the same time, the COVID–19 pan- 3 demic has significantly contributed to the decline in 4 market dominant mail volumes and revenues while 5 increasing costs, putting additional stress on the fi- 6 nancial situation of the Postal Service. 7 (13) Now more than ever, affordable mail and 8 package delivery provided by the Postal Service is a 9 lifeline for people in the United States, especially for 10 seniors and others living in remote and rural areas. 11 (14) The critical services the Postal Service 12 provides will play a fundamental part of the eco- 13 nomic recovery of the United States. 14 (15) Congress should provide immediate emer- 15 gency appropriations to cover financial losses to the 16 Postal Service caused by the COVID–19 pandemic 17 in order to keep the Postal Service operating without 18 interruptions in service and to give the new Post- 19 master General and the Board of Governors of the 20 Postal Service time to formulate and propose to 21 Congress a plan to ensure the long term viability of 22 the Postal Service. 23 (16) In addition, although Congress recognized 24 the critical role the Postal Service plays by providing 25 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4174 IS $10,000,000,000 in borrowing authority in the 1 CARES Act (Public Law 116–136; 134 Stat. 281) 2 to address operating losses caused by the COVID– 3 19 pandemic, clarification is required with respect to 4 the terms and conditions imposed by the Secretary 5 of the Treasury on any such borrowing. 6 SEC. 3. DEFINITIONS. 7 In this Act: 8 (1) COVID–19.—The term ‘‘COVID–19’’ 9 means the coronavirus disease 2019 (COVID–19). 10 (2) POSTAL SERVICE.—The term ‘‘Postal Serv- 11 ice’’ means the United States Postal Service. 12 SEC. 4. EMERGENCY APPROPRIATIONS FOR THE POSTAL 13 SERVICE TO COVER COVID–19 INDUCED 14 LOSSES. 15 (a) IN GENERAL.—There is established in the Treas- 16 ury of the United States a fund to be known as the Postal 17 Service COVID–19 Emergency Fund. 18 (b) APPROPRIATIONS.—There is appropriated, out of 19 any money in the Treasury not otherwise appropriated, 20 to the Postal Service COVID–19 Emergency Fund, 21 $25,000,000,000, to remain available until September 30, 22 2022, pursuant to this section: Provided, That such 23 amount is designated by Congress as being for an emer- 24 gency requirement pursuant to section 251(b)(2)(A)(i) of 25 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4174 IS the Balanced Budget and Emergency Deficit Control Act 1 of 1985 (2 U.S.C. 901(b)(2)(A)(i)). 2 (c) CERTIFICATION.—The Postal Service shall certify 3 in its quarterly and audited annual reports to the Postal 4 Regulatory Commission under section 3654 of title 39, 5 United States Code, and in conformity with the require- 6 ments of section 13 or 15(d) of the Securities Exchange 7 Act of 1934 (15 U.S.C. 78m, 78o(d)), any expenditures 8 necessary to cover lost revenue or operational expenses re- 9 sulting from the COVID–19 pandemic. The Postal Service 10 shall provide copies of these certified filings to the Senate 11 Committee on Homeland Security and Governmental Af- 12 fairs, and the House Committee on Oversight and Reform 13 within 15 days of any filing with the Postal Regulatory 14 Commission. 15 (d) TRANSFER.—Within 15 days of any filing with 16 the Postal Regulatory Commission, as referenced in sub- 17 section (c), the Secretary of the Treasury shall transfer 18 from the Postal Service COVID–19 Emergency Fund to 19 the Postal Service Fund such amounts, up to 20 $25,000,000,000 certified as expenditures necessary to 21 cover lost revenue or operational expenses resulting from 22 the COVID–19 pandemic, pursuant to subsection (c). This 23 transfer authority is in addition to any other transfer au- 24 thority provided in this Act. Any amounts transferred to 25 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 4174 IS the Postal Service Fund under this section may be used 1 for such purposes as the Postal Service considers appro- 2 priate, pursuant to this section. 3 (e) ADDITIONAL REQUIREMENT.—The Postal Serv- 4 ice, during the COVID–19 pandemic, shall prioritize the 5 purchase of, and make available to all employees and fa- 6 cilities of the Postal Service, personal protective equip- 7 ment, including gloves, masks, and sanitizers, and shall 8 conduct additional cleaning and sanitizing of Postal Serv- 9 ice facilities and delivery vehicles. 10 SEC. 5. CLARIFICATION OF POSTAL SERVICE BORROWING 11 AUTHORITY. 12 Section 6001(b)(2) of the Coronavirus Aid, Relief, 13 and Economic Security Act (Public Law 116–136) is 14 amended to read as follows: 15 ‘‘(2) the Secretary of the Treasury shall lend up 16 to the amount described in paragraph (1) at the re- 17 quest of the Postal Service subject to the terms and 18 conditions of the note purchase agreement between 19 the Postal Service and the Federal Financing Bank 20 in effect on September 29, 2018.’’. 21 SEC. 6. POSTAL SERVICE REFORM PLAN. 22 (a) IN GENERAL.—The Postmaster General shall, in 23 coordination with the rest of the Board of Governors of 24 VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 4174 IS the Postal Service, develop a plan to ensure the long-term 1 solvency of the Postal Service. 2 (b) SUBMISSION TO CONGRESS.—No later than 270 3 days after the date of enactment of this Act, the Postal 4 Service shall submit to the Committee on Homeland Secu- 5 rity and Governmental Affairs of the Senate, the Com- 6 mittee on Oversight and Reform of the House of Rep- 7 resentatives, and the Postal Regulatory Commission the 8 plan required under this section, including recommenda- 9 tions for congressional action. 10 (c) CONGRESSIONAL UPDATE.—Prior to submission 11 of the plan required under subsection (b) and not later 12 than 180 days after the date of enactment of this Act, 13 the Postal Service shall provide a briefing on the status 14 of the plan to the Committee on Homeland Security and 15 Governmental Affairs of the Senate and the Committee 16 on Oversight and Reform of the House of Representatives. 17 Æ VerDate Sep 11 2014 01:33 Jul 13, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S4174.IS S4174 pbinns on DSKJLVW7X2PROD with BILLS