This document provides background information and summarizes the debate over postal service reform. The links to the left will lead you to public documents that we have found.
The U.S. Postal
Service has a long and glorious history, reliably delivering the mail to all
Americans in every nook and cranny of the United States. Through "rain,
sleet and snow" the mail does, in fact, arrive at our homes and offices
six days a week. Moreover, it's inexpensive to use the U.S. Mail and the Postal
Service will transport and deliver a wide range of instruments: packages,
fliers, magazines, and just about anything that can be fit into an envelope
or small box.
At the same time
the Postal Service faces a serious challenge as it faces the future. Today,
an individual wanting to move information, data, a letter, or a package has
other options aside from the U.S. Mail. Most obviously many kinds of letters
that would previously be sent through the traditional mail can now be sent
electronically-and at no charge beyond a standard monthly fee for an Internet
hook-up. Commercial enterprises like UPS and FedEx, can ship smaller items
that the Post Office does as well, but can also ship much larger packages
and thus is more convenient for many businesses who would prefer to use one
a single vendor for all their packages.
Many argue that
the U.S. Postal Service is in a deteriorating position that threatens its
quality of service and financial stability. As a congressional aide noted,
"First class mail volume is going down and at the same time you have
the Postal Service raising rates beyond the rate of inflation. That kind of
behavior leads to a death spiral." Legislation to reform and modernize
the Postal Service was seriously considered in the 106th Congress by the Postal
Subcommittee of the House Government Reform and Oversight Committee. The legislation
developed by Subcommittee Chair John McHugh (R-NY) and other members was designed
to make the Postal Service more competitive. The legislation would have allowed
the agency to expand into other lines of business beyond their traditional
role of transporting letters and small packages. Said one supporter, "We
need to give the Postal Service the tools to adapt and compete and deal with
problems. FedEx, the Internet, and so on didn't exist 30 years ago when the
last effort was made to revamp the Postal Service." The legislation would
have also given the Postal Service more flexibility in pricing.
The legislation
was fought by UPS (United Parcel Service) and some companies (like newspapers)
with a stake in preserving the status quo. UPS argued that it was unfair to
let the government compete in other markets because the government would have
an unfair advantage. Republicans in Congress were not united in backing the
legislation as some wanted to privatize the postal service instead of trying
to reform it. The American Postal Workers Union was also opposed. The Democrats
on McHugh's subcommittee didn't support the bill either. The legislation couldn't
overcome this opposition and H.R. 22, the Postal Modernization Act, never
got out of the subcommittee.