Postal Service stresses its independence as lawmakers say the administration is “inappropriately inserting” itself into the agency’s operations.
he U.S. Postal Service is denying the Trump administration has used its leverage in controlling the purse strings of a loan to gain improper influence over the mailing agency’s business operations, despite pushback from lawmakers who said the loan terms would “accelerate the demise of the Postal Service.”
USPS announced on Wednesday it had reached an agreement with the Treasury Department to access a $10 billion loan Congress authorized in April as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to aid the agency after the novel coronavirus pandemic led to a drastic downturn in its business. In a term sheet for the loan signed by Treasury Secretary Steve Mnuchin and made public by congressional Democrats, USPS agreed to many concessions to access the money, including briefing Treasury on key parts of its operations and disclosing new and amended agreements with its largest customers.
The loan agreement followed months of negotiations and criticism from lawmakers, stakeholders and, in at least one case, from postal management itself, that Mnuchin and the Trump administration were seeking inappropriate influence through the terms of the loan. Congress included language allowing Mnuchin to negotiate those terms with postal management.