In response to the financial losses the Postal Service faces due to the coronavirus pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) included language to provide USPS with a $10 billion loan from the Department of Treasury in order to survive the fiscal year. However, the law requires the Secretary of Treasury and the Board of Governors to come to agreement on the terms and conditions of the loan.
On Wednesday, July 29, 2020, Postmaster General Louis DeJoy announced that an agreement had been reached, granting USPS access to the funds. In a press release, PMG DeJoy commented, "Access to an additional $10 billion in borrowing authority will delay the approaching liquidity crisis. The Postal Service, however, remains on an unsustainable path and we will continue to focus on improving operational efficiency and pursuing other reforms in order to put the Postal Service on a trajectory for long-term financial stability.” It should be noted,however,that details of the terms of agreement have not been made public. The loan announcement comes on the heels of the implementation of a pilot program that is creating intentional delivery delays, and the NPMHU is concerned that the terms will include significant and permanent operational changes that would impact the membership.
Stay tuned for more details.