The Alliance Applauds Introduction of the USPS SERVES US Act
Recognizing that Congress needed to intervene to save the U.S. Postal Service (USPS), Rep. Jake LaTurner (R-KS-2) introduced the USPS Services Enhancement and Regulatory Viability Expansion and Sustainability for the U.S. Act (USPS SERVES US Act, H.R. 9839) on September 25, 2024.
For the past several years, USPS has raised postage rates twice each year at amounts far above inflation. At the same time service performance has significantly declined. The legislation would empower the USPS regulators (the Postal Regulatory Commission, or PRC) to stop USPS decisions that are hurting its ability to serve the American people and driving it into financial ruin.
While the PRC approved the July 2024 rate hike, the Commission stated that the increase was not “prudent...or consistent with the best interests of all stakeholders.” The PRC claimed it lacked the statutory authority to reject the proposed rate hike. This legislation would give teeth to the PRC.
PRINTING United Alliance advocated for the legislation, which includes all of the recommended provisions suggested by our coalition partners, Keep US Posted and the Coalition for a 21st Century Postal Service.
Key provisions of the USPS SERVES US Act include:
- Annual Rate Increase Limit: Limits USPS to one rate increase per year, avoiding unnecessary implementation costs and providing greater rate predictability.
- X-Factor Rate Reduction: Implements an X-factor reducing rate authority, a widely utilized tool to ensure cost discipline, if USPS productivity is not improved each year.
- Price Cap Protection: Prohibits the PRC from creating a rate system with no price cap ultimately preserving the trade-off between pricing flexibility and rate predictability.
- “Underwater Surcharge” Limitation: Caps surcharges if service performance and cost efficiency are not maintained for the relevant products.
- Volume Growth Objective: Creates a new volume encouraging objective for evaluating rate increases and requires the PRC to apply each objective for rate setting in every proceeding.
- Independent Volume Model: Requires the PRC to develop its own volume estimation model independent of the USPS.
- Service Accountability: Holds the USPS accountable for service performance by reducing rate authority if it fails to meet established service targets and makes PRC nature of service evaluations binding decisions, not just advisory opinions.
- Customer Advocate Office: Establishes an autonomous Office of Customer Advocate within the PRC, with the authority to represent customer concerns and initiate proceedings on their behalf.
- Complaint Resolution: Streamlines PRC consideration of complaints and empowers the PRC to reduce rates for affected authorities if it finds a rate is unlawful.
- Financial Health Consideration: Mandates arbitrations in USPS-Union contract disputes to consider the financial health of the USPS.
- Retirement Fund Investments: Authorizes USPS to invest retirement assets in private index funds such as those used by the Thrift Savings Fund.
The legislation gives the PRC a clear mandate to protect the public interest and ensure that the USPS maintains service quality at a predictable, fair and affordable price for the mailing industry and all USPS customers.
The Alliance encourages you to take a moment to send an email to your representative and encourage them to cosponsor and support the USPS SERVES US Act. As a key delivery channel for print and packages, we need your collective voice to ensure an affordable and reliable U.S. Postal Service.
Stephanie Buka is the Government Affairs Coordinator at PRINTING United Alliance, the most comprehensive member-based printing and graphic arts association in the United States, comprised of the vast communities which it represents. The Alliance serves industry professionals across market segments with pertinent education, training, workshops, events, research, government and legislative representation, safety, and environmental sustainability guidance, as well as resources from the leading media company in the industry – NAPCO Media. Now a division of PRINTING United Alliance, Ideallianceis the global leader in standards training and certification for printing and graphic arts operations across the entire industry supply chain.
