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1 1 (October 19, 2023)

handle is hein.crs/goveney0001 and id is 1 raw text is: Congressional Research Service Informing the legislative debate since 1914 S October 19, 2023 FY2024 U.S. Postal Service Appropriations Overview The U.S. Postal Service (USPS) generates nearly all of its funding-about $78.5 billion annually according to the USPS's most recent financial report-by charging users of the mail for the costs of the services it provides. Congress, however, does provide an annual appropriation-about $50 million in FY2023-to compensate the USPS for revenue it forgoes in providing free mailing privileges to the blind and overseas voters. In addition, the annual appropriation compensates the USPS for debt it accumulated in the 1990s while providing postal services at below-cost rates to non- profit organizations. Historically, the appropriation has not always compensated the USPS for all of the revenue forgone. Congress authorized appropriations for revenue forgone in the Revenue Forgone Reform Act of 1993 (RFRA; P.L. 103-123, Title VII). Additionally, under the Postal Accountability and Enhancement Act (PAEA; P.L. 109- 435), funding for both the USPS Office of Inspector General (USPSOIG) and the Postal Regulatory Commission (PRC) must be provided out of the Postal Service Fund. The Postal Service Fund is a revolving fund that consists largely of revenues generated from the sale of postal products and services. (39 U.S.C. §2003) The PAEA requires that the USPSOIG must submit its budget request directly to Congress and to the Office of Management and Budget. The law further requires that the USPSOIG's budget be treated as a component of the USPS's budget. The Postal Service Reform Act of 2022 (PSRA; P.L. 117- 108) amended 39 U.S.C. §2003(e), creating permanent authority for the Postal Service Fund to be used for payment of expenses incurred by the PRC, thereby removing the PRC from the annual appropriations process. Under the PSRA, the PRC submits its annual budget to USPS for approval by the Postal Governors and its expenses are paid out of the Postal Service Fund. The PRC's budget, like the budgets of other independent regulators, is treated separately from that of USPS. USPS appropriations have generally been included in the annual Financial Services and General Government (FSGG) appropriations bill. For FY2024, this is H.R. 4664 and S. 2309. (For more information, see CRS Report R47743, Financial Services and General Government (FSGG) FY2024 Appropriations: Overview, Financial Services and General Government (FSGG) FY2024 Appropriations: Overview.) Surmary of FY2024 Budget Request and Appropriations Postal Service Fund * For FY2024, the President's budget includes a request of $75.5 million for the Postal Service Fund to compensate for revenue forgone in providing free and reduced mail. This is $25.28 million more than the FY2023 request and FY2023 enacted appropriations. * Both the President's budget and the USPS FY2024 Congressional Budget Submission request an additional $307.224 million to compensate for previous years' revenue forgone that was not appropriated or made available to the Postal Service. * Additionally, the President's budget requests $157.575 million to reimburse USPS for reduced cost mail service between the United States and the Freely Associated States (i.e., Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau). Under the Compacts of Free Association, mail delivery between the United States and the Freely Associated States is priced and treated as domestic rather than international mail. (USPS, Domestic Mail Manual, Section 608.2.) * H.R. 4664 would provide $35.4 million for the PSF, which is $14.83 million below the FY2023 enacted appropriation and $40.1 million below the amount requested. S. 2309 would provide $50.3 million, which maintains funding for the PSF at the same level as FY2023, but is $25.28 million below the amount requested. U.S. Postal Service Office of Inspector General * For FY2024, the USPSOIG and the President request $290.579 million be transferred from the Postal Service Fund for the USPSOIG. This represents an increase of approximately $19.6 million over the FY2023 enacted appropriation. * H.R. 4664 would provide $274.467 million for the USPSOIG (via transfer from the Postal Service Fund), which is about $3.5 million more than the FY2023 enacted level, but about $16.1 million below the requested amount. S. 2309 would provide $271 million, which maintains funding for the PSF at the same level

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