Postal regulator urges Congress to define universal service obligation

The oversight body for the Postal Service asked Congress on Thursday to define the agency's universal service obligation, which requires affordable mail delivery to every address nationwide. Acting Postal Regulatory Commission Chairman Robert Taub testified before a House oversight subcommittee.

He said clearer rules would let the Postal Service cut costs while still meeting its legal duties. Taub also said the agency now has more financial breathing room than its leaders had stated earlier this year.

Service requirements Taub told lawmakers that Congress should decide how many delivery days per week are needed, what delivery times are acceptable, and whether service levels should be uniform across the country. He said the commission views a statutory definition of the universal service obligation as the single most important step Congress can take.

Financial outlook Taub said the Postal Service's suspension of biweekly pension payments has given the agency at least several additional years before any cash shortfall would occur. The commission's waiver of minimum retirement contributions could provide $15 billion or more in relief through 2030, he said.

Taub contrasted this assessment with earlier testimony from Postal Service leadership, which had warned of running out of cash within 12 months. A Postal Service spokesperson previously described the pension-payment suspension as providing only a small financial cushion and urged Congress to expand borrowing authority this year.