Bowling Green Today

U.S. Senator Rand Paul has raised concerns over the financial management of the United States Postal Service (USPS), calling for substantial labor reforms. During a Senate Homeland Security and Governmental Affairs Committee hearing titled "Oversight of the United States Postal Service: Understanding Proposed Service Changes," Dr. Paul emphasized the need for structural changes to address ongoing financial losses.

Despite receiving over $120 billion since 2020, USPS reported a net loss of $9.5 billion this year, marking a significant increase from last year's $6.5 billion loss. Dr. Paul criticized USPS's decision to convert 190,000 employees to permanent positions with union benefits, arguing that it contributes to rising debt.

Dr. Paul highlighted that private businesses facing similar financial challenges would reduce workforce costs rather than expand them. He called on Congress to halt further funding until USPS implements alternative labor solutions or outsources its workforce.

The senator referenced economist Milton Friedman in his remarks, drawing parallels between Friedman's views on government inefficiency and USPS's current situation. He recalled that Congress was assured in 2020 that a $107 billion bailout would stabilize USPS within three to four years and lead to break-even operations by 2031.

However, the Delivering for America initiative has not yielded expected results, with USPS continuing to report substantial losses in fiscal years 2023 and 2024. Dr. Paul argued against further funding without labor practice changes during discussions on the Postal Service Reform Act.

USPS attributes some financial difficulties to uncontrollable costs but is also investing heavily in infrastructure projects like electric delivery vehicles and facility upgrades, which have yet to improve service efficiency.

The Postal Service has requested an increase in its borrowing limit with the Treasury Department, prompting Dr. Paul to urge accountability for these expenses instead of seeking congressional bailouts.

Congress has provided $120 billion in funding and relief over four years despite growing national debt concerns. Earlier this year, USPS sought additional taxpayer funds through a transfer from the Office of Personnel Management.

Dr. Paul stressed that massive structural reform is needed within USPS's workforce hiring and retention practices rather than its network infrastructure.