White House rejects bailout for U.S. Postal Service battered by coronavirus

White House rejects bailout for U.S. Postal Service battered by coronavirus

The Washington Post reports:

Through rain, sleet, hail, and even a pandemic, mail carriers serve every address in the United States, but the coronavirus crisis is shaking the foundation of the U.S. Postal Service in new and dire ways.

The Postal Service’s decades-long financial troubles have worsened dramatically as the volume of the kind of mail that pays the agency’s bills ― first-class and marketing mail ― withers during the pandemic. The USPS needs an infusion of money, and President Trump has blocked potential emergency funding for the agency that employs around 600,000 workers, repeating instead the false claim that higher rates for Internet shipping companies Amazon, FedEx and UPS would right the service’s budget.

Trump threatened to veto the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act, or Cares Act, if the legislation contained any money directed to bail out the postal agency, according to a senior Trump administration official and a congressional official who, like others in this report, spoke on the condition of anonymity.

“We told them very clearly that the president was not going to sign the bill if [money for the Postal Service] was in it,” the Trump administration official said. “I don’t know if we used the v-bomb, but the president was not going to sign it, and we told them that.”

The Postal Service projects it will lose $2 billion each month through the coronavirus recession while postal workers maintain the nationwide service of delivering essential mail and parcels, such as prescriptions, food and household necessities.

That work often comes at great personal risk. Nearly 500 postal workers have tested positive for the coronavirus and 462 others are presumptive positives, USPS leaders told lawmakers. Nineteen have died; more than 6,000 are in self-quarantine because of exposure. [Continue reading…]

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