Dear Mr. Hamster:
Thank you for contacting me about President Biden’s nominations to the United States Postal Service (USPS) Board of Governors. I always appreciate hearing from Arizonans about issues facing our state and country. It is important that we have conversations about topics that matter to you and your family, and I hope you will continue to reach out to me and share your perspectives and suggestions.
The USPS is the independent federal entity responsible for providing reliable, efficient, and affordable package and letter delivery to every address in the country. Founded in 1775 by the Continental Congress, the USPS mostly operates today as a business with revenue from the sale of stamps and other postage. It is estimated that approximately 600,000 federal jobs, 7.3 million jobs in the private sector, and $1.6 trillion in annual economic activity depend on the Postal Service. The Postal Service does not receive any taxpayer funding for regular operating expenses. Like many businesses, the Postal Service has suffered due to the COVID-19 crisis. As of March 2021, more than 55,000 postal workers had tested positive for the coronavirus and over 170 had died.
Over the past two decades, the USPS has experienced significant financial difficulties. In 2006, Congress passed the Postal Accountability and Enhancement Act, which required the USPS to spend between $5.5 and $5.8 billion each year to fund health benefits for current and future employees. Along with declining overall mail volumes, this prefunding requirement, which no other federal government agency must meet, plays a significant role in the USPS’ precarious financial situation. As of March 23, 2021, the USPS had $188billion in liabilities and only $37 billion in assets, representing a deficit of more than $151 billion.
The USPS Board of Governors is the administrative body that helps manage the Postal Service. The board typically consists of up to nine governors appointed by the president and confirmed by the United States Senate. The governors select the postmaster general, who becomes a member of the board and serves at the pleasure of the governors for an indefinite term. The board also directs and controls USPS expenditures, determines service standards, conducts long-range planning and generally sets policy on all postal matters. On June 15, 2020, the USPS Board of Governors hired Louis DeJoy as the new postmaster general following the retirement of the previous postmaster general.
On March 23, 2021, the USPS released a new 10-year strategic plan. The plan focuses on returning the USPS to financial stability but includes several service changes. The strategy preserves the USPS’ existing six-day mail delivery service and expands seven-day package delivery, but reduces service standards for first class mail. Under the plan, 70 percent of the mail will be delivered in three days or less and some mail processing centers could be consolidated or closed. The plan also includes important infrastructure investments, including new air-conditioned vehicles, new and modernized post offices, and facility upgrades. The plan also calls on Congress to integrate USPS retiree health benefits with Medicare and eliminate the retiree health care prefunding requirement. This strategic plan followed a series of operational changes Postmaster General DeJoy announced during the summer of 2020. These changes, which included reducing extra or late trips by mail trucks, limiting employee overtime, and restructuring USPS leadership, slowed mail service in many parts of the country, including Arizona. The postmaster general did subsequently suspend most of those operational changes in the late summer, but similar changes were included in the 10-year plan.
Article II, section two of the U.S. Constitution empowers the president to appoint certain public officials with the advice and consent of the United States Senate. Prior to an official nomination, each nominee traditionally undergoes a detailed vetting process, including comprehensive investigations by the Federal Bureau of Investigation and other government agencies. After introduction on the Senate floor, the nominations move to the Senate committees with jurisdiction over the appointed position. For nominees to the USPS Board of Governors, that is the Senate Committee on Homeland Security and Governmental Affairs, on which I serve. Following committee hearings and approval, the entire Senate may vote on the confirmation of the nominee.
President Biden nominated Anton Hajjar, Amber McReynolds, and Ron Stroman to the USPS Board of Governorson February 24, 2021. Supporters of the nominees argue they bring important postal workforce experience, expert knowledge on voting by mail, and a deep understanding of the entire postal system. Opponents of their nominations worry that the influx of new governors is a political maneuver to oust Postmaster General DeJoy. The three nominations were considered by the Senate Committee on Homeland Security and Governmental Affairs on April 28, 2021. The United States Senate confirmed Mr. Stroman’s nomination on May 12, 2021 by a vote of 69 to 30. The Senate confirmed Ms. McReynolds’ nomination by a vote of 59 to 38 on May 13, 2021. I voted for Ms. McReynolds and Mr. Stroman’s nominations. The nomination of Mr. Hajjar may be considered by the full Senate at a later date.
For months, I have heard from Arizonans and local government officials about lost and severely delayed mail and packages in our state, especially during the 2020 holiday season. In communities across Arizona, the Postal Service is a critical lifeline that connects loved ones, supports small businesses, and ensures our right to vote by mail. Last year, I successfully advocated for funding to offset USPS revenues lost due to the COVID-19 pandemic. I will continue to work with my colleagues on both sides of the aisle to improve the USPS’ financial stability and ensure the agency makes sound operational decisions to boost service and reliability for Arizona’s growing population. I joined Senator Gary Peters (D-MI) and Senator Rob Portman (R-OH) on May 19, 2021 to cosponsor S. 1720, the Postal Service Reform Act, which removes the ill-conceived retiree health care prefunding requirement and more efficiently integrates retiree health care with Medicare. S. 1720 will save the USPS approximately $45 billion over 10 years.
As Arizona’s senior senator, I will evaluate every presidential nominee based on whether he or she is professionally qualified, believes in the mission of his or her organization, and can be trusted to faithfully execute and uphold the law as it exists. Each of these nominees to the USPS Board of Governors meets those standards and understands the importance of reliable postal service for Arizona communities. As a longtime advocate ofensuring the Postal Service meets the needs of Arizonans, I will always carefully consider any nominations to the USPS Board of Governors.
Thank you for sharing your view on this issue with me. Please do not hesitate to contact our office with any future questions or comments. Additionally, if you would like to stay connected to our office with the latest news, legislation, and other useful information, please visit our website, sinema.senate.gov.
Sincerely,
Kyrsten Sinema
United States Senator