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1 1 (May 12, 2020)

handle is hein.crs/govdamw0001 and id is 1 raw text is: Researh Sevice U.S. Postal Service Financial Condition and Title VI of the CARES Act May 12, 2020 In its latest response to concerns about the financial condition of the United States Postal Service (USPS), Congress added a provision to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136, Section 6001) expanding USPS's authority to borrow from the Treasury. This comes at a time when USPS is delivering important information and products in connection with the ongoing COVID- 19 pandemic, including economic impact payments, census mailings, mail-in election ballots, and vital medicines. The CARES Act borrowing authority raises new questions about USPS's fiscal condition. This Insight briefly reviews USPS's funding structure, its existing borrowing authority, and the financial challenges it faced before, and is likely to face after, the pandemic. It concludes with potential issues for congressional consideration. Existing USPS Funding Structure USPS operates more than 31,600 retail locations and handles 48% of the world's mail volume. It provides military postal service in 67 countries and diplomatic mail service in 113 countries. It employs nearly 650,00() workers and has more than 600,000 retirees and survivors who receive benefits. USPS generates almost all of its funding-over $71 billion annually-by charging mail users for the costs of the services it provides, but in certain situations, Congress provides funding. Since 1993, Congress has provided annual appropriations to the Postal Service Fund to compensate USPS for revenue it forgoes in providing free mailing privileges to the blind and to overseas voters ($56.7 million in FY2020). The USPS Office of Inspector General ($250 million) and the Postal Regulatory Commission (PRC; S16.6 million) receive funding via transfers from the Postal Service Fund. Financial Condition USPS has continued to incur annual losses for at least a decade. In FY2019, its expenses were nearly $80 billion while revenues were $71 billion, resulting in a loss of almost $9 billion. In 2019, Postmaster General Megan J. Brennan testified before the House Committee on Oversight and Reform on the financial condition of USPS. She stated that without legislative and regulatory reforms that alleviate Congressional Research Service https://crsreports.congress.gov IN11384 CRS }NStGHT Prepaed for Membeivs and Cornm ittees o4 Cor~qress ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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