November 15, 2018
Postmaster General Megan Brennan, speaking to reporters in a conference call Wednesday, said the rate increase would provide USPS with “vital additional revenue that we absolutely need to help fund our operations.”
Joe Corbett, USPS chief financial officer, estimated the upcoming price increase would’ve brought in $1.6 billion in additional revenue — about $800 million from “market-dominant” mail products like letters, and about $880 million from “competitive products” like its package and shipping business.
It remains unclear when President Donald Trump plans to release a final report based on a White House postal task force he created in April. The task force, chaired by Treasury Secretary Steve Mnuchin, gave the president its recommendations in August.
“The release of the report is within the discretion of the administration, and we don’t have any definitive information regarding its release,” Brennan said.
The Homeland Security and Governmental Affairs Committee was originally slated to hold a hearing on the postal task force recommendations, but postal sources say the White House decided to hold off on publicly releasing the findings until after the midterm elections.
However, the administration has already signaled its intention to restructure and privatize USPS as part of its larger government reorganization plan, but has met strong bipartisan opposition from lawmakers on selling the Postal Service.
In the meantime, Brennan said legislative reform remains an essential part of putting the Postal Service on firm financial footing — along with “aggressive management” of the business and pricing system reform.
“While the organization is fundamentally strong in terms of the value we deliver and the role we play in America’s economy and community, we are not financially strong,” Brennan said. “The Congress and our regulator must make statutory and regulatory changes to our business model to return the Postal Service to financial stability.”
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