The Treasury Department announced Wednesday that it has reached an agreement to increase around $10 billion into this U.S. Postal Service (USPS) under a provision of the coronavirus-relief package passed by Congress in March after months of discussions —and hostility from President Trump, who has derided the Postal Service as a “joke.”
Though the loan was approved months ago as a member of this Coronavirus Aid, Relief, and Economic Security (CARES) Act, the supply permitted Treasury Secretary Steve Mnuchin to negotiate terms of this loan with postal direction, which resulted in some months-long delay in sending the capital.
Trump known as the USPS that a “joke” in late April and stated “this thing’s losing billions of dollars” and “if they don’t raise the price I’m not signing anything,” talking to his longstanding effort to find the agency to bill more.
For decades, Trump has promised that costs are too low and in 2018 he pushed their head of the bureau to bill Amazon and other huge e-commerce retailers more to send packages, asserting USPS was losing money on bundles delivered to their own.
From the USPS statement Wednesday, Postmaster General Louis DeJoy Reported the loan will “delay the approaching liquidity crisis,” including that the Postal Service still “remains on an unstable path” and they will continue to work to place it upon a “trajectory for long-term financial stability.”
Considering beginning his function in mid-June, DeJoy—a governmental contributor to Trump—has generated significant operational changes that may slow down email delivery, such as telling letter carriers to depart email supporting at distribution centres when it occurs late and coming back to pick up them would delay them out of their paths, based on some Washington Post report.
Most Trump critics fear that a politicized Postal Service may make election chaos this season, when more mail-in ballots (that Trump has derided) will probably be at use—as a report in the New Yorker cautioned Wednesday: “[Trump’s] demagoguery and also the appointment of DeJoy raise obvious questions about whether the direction of voting by email is going to be manipulated in support of Trump’s reëlection.”
The Postal Service’s finances are a problem for several decades. It reported a net loss of $8.8 billion in 2019, $4.9 billion over the preceding year. Running expenses for the year were $79.9 billion, an increase of $5.4 billion, or 7.3%, in comparison to 2018. The Postal Service’s finances are promoted since the coronavirus pandemic has caused people to be reliant upon shipping solutions. The pandemic has had a substantial effect employees. The National Association of Letter Carriers (NALC) reported on July 15 that roughly two,100 of their 8,000 currently quarantined postal workers have tested positive for the virus, and also at least 500 more individuals are assumed to be optimistic. They stated another 3,000 postal workers who tested positive previously have recovered and returned to work, however that 72 postal employees have died from the virus, including 15 letter carriers.
“The Postal Service is in a financially unsustainable position, stemming from substantial declines in mail volume, and a broken business model,” DeJoy said in a July 27 statement urging Congress and the Postal Regulatory Commission to enact legislative and regulatory reforms.
In 2018, USPS administrators told the Wall Street Journal Trump’s desire to increase package prices for Amazon along with other big retailers stems from his desire to hurt Amazon because of that the unfair policy he believes he’s obtained from the Washington Post, which will be owned by Amazon founder and CEO Jeff Bezos.