Dems look to give Postal Service 90-day extension on retiree payments

“This measure will ensure that the Postal Service and Congress have additional time to work together on comprehensive legislation to improve the Postal Service’s long-term viability,” he said of his bill, H.R. 2884.

{mosads}However, House Republicans have indicated they want to move forward not by finding more money for the USPS, but by pushing for cuts. Committee Chairman Darrell Issa (R-Calif.) said this week that Congress needs to solve the USPS’s cash flow problems by pushing for the retirement of as many as 200,000 postal workers and closing post offices.

Issa added that these cuts need to be made because the current workforce is not as necessary “because you and I are emailing.”

The USPS is expected to hit hits $15 billion borrowing limit this month, and is not expected to be able to make its $5.5 billion payment to its retiree benefit plan by the end of the month. Cummings noted that this payment is obligated by a 2006 bill that requires USPS to make accelerated annual payments to fully fund its healthcare program, and said this is a higher hurdle than private sector companies.

Cummings said Democrats would be introducing other bills in the coming weeks aimed at raising revenue and cutting costs at the USPS.