NAPS — A Postal ‘Thought Leader'

NAPS — A Postal ‘Thought Leader’
By Bob Levi
NAPS Director of Legislative & Political Affairs

On June 9, NAPS President Ivan D. Butts once again participated in a postal roundtable conducted by the Congressional Postal Service Caucus co-chaired by Reps. Nikki Budzinski (D-IL) and Jack Bergman (R-MI). The event took place in the U.S. Capitol.

NAPS, the Postal Regulatory Commission (PRC), four mailer organizations and the National Association of Letter Carriers were seated at the “roundtable.”

The caucus co-chairs and other members of Congress underscored the importance of bringing together a variety of postal stakeholders to have high-level conversations on issues crucial to the Postal Service and its customers. As part of the discussion, Budzinski asked Butts to outline the background and key elements of the legislative framework NAPS developed to safeguard the Postal Service’s universal service obligation (USO).

This is a proposal NAPS has shared with and solicited feedback from key members of Congress, two leading policy think tanks and several postal stakeholders. Butts told caucus members that the proposal responds to three congressional objectives.

First, it would help sustain universal mail service. Second, it would strengthen accountability by linking the existing USPS Public Service Appropriation to the fulfillment of the USO. And third, it would alleviate some of the financial burdens the USO places on the Postal Service. You may review the proposal and its justification in Butts’ submitted caucus statement on page 23.

During discussion regarding NAPS’ proposal, a roundtable panelist described NAPS as a “thought leader” in the postal community for its efforts to sustain and improve the Postal Service. While the recognition is appreciated, delivering the final product is our measure of success.

A week before the Postal Caucus Roundtable, on June 4, the House Oversight and Government Subcommittee on Government Operations heard from all four members of the PRC at a hearing that focused on the Postal Service’s poor financial condition, lingering diminished postal performance resulting from the “Delivering for America” (DFA) plan and the important role the PRC plays regarding the Postal Service’s USO. The commissioners were the only witnesses invited to testify.

Two days before the hearing, Postmaster General David Steiner sent a letter to the bipartisan leadership of the House and Senate committees that have jurisdiction over postal affairs in which he summarized the Postal Service’s immediate legislative request. First, Steiner asked Congress to increase the agency’s borrowing authority from $15 billion to $34.5 billion.

Second, the PMG proposed reforming and resuming the USPS’ public service appropriation. (Although not similar, this proposal generally aligns with NAPS’ proposal.) And third, the Postal Service seeks to diversify investment of its retirement trust funds. (At the 2024 NAPS National Convention, NAPS delegates voted to support legislation implementing this investment strategy.)

At the beginning of the hearing, Subcommittee Chairman Pete Sessions (R-TX) referenced the letter, indicating he was skeptical about the PMG’s request to increase the agency’s borrowing authority. Sessions and the other committee members seemed inclined to explore other options, including enhancing the authority of the PRC and providing the Postal Service with the ability to diversify its trust fund investments.

I want to take the opportunity in this column to wish John “JD” Guerrero, Sessions’ trusted postal policy adviser, best wishes as he departs Capitol Hill for the University of Texas School of Law. JD has been with the chairman for more than three years and participated in this year’s NAPS Legislative Training Seminar.

On June 17, the Senate Homeland Security and Governmental Affairs Committee held a confirmation hearing on two individuals President Donald Trump nominated to the Postal Service Board of Governors: Jeffrey Brodsky and William Gallo. Anthony Lomangino and Robert Steffens also were nominated and scheduled to appear, but, at the last minute and without explanation, they were removed from the witness list.

Brodsky is a co-founder and managing director of Quest Turn Around Advisors, a management company that provides advice, interim management or liquidation of companies confronting financial crises. Gallo founded Emergency Medical Solutions, a medical supply and logistics company. Lomangino has been an executive in the waste management and recycling industry. Steffens was a former executive at Marvel Entertainment, the corporate home of the Spider-Man and Ironman enterprises.

Under questioning by Sen. Gary Peters (D-MI), Brodsky claimed he “has no view” on postal privatization; Gallo testified he was opposed to it. Peters also secured the agreement of both nominees that the PRC performs a valuable service. This position conflicts with USPS Headquarters; PMG David Steiner and former PMG Louis DeJoy have severely criticized the PRC for interfering in postal decision-making.

Sen. Josh Hawley (R-MO) expressed his long-standing criticism of the DFA plan’s negative impact on rural mail service and received assurance from the nominees that, if confirmed, they would revisit the DFA plan. Committee Chair Rand Paul (R-KY) focused on the financial status of the Postal Service. Gallo suggested the agency should consider closing the funding gap half through revenue increases and half through cutting expenses.

Sen. Elissa Slotkin (D-MI) focused on Trump’s executive order requiring the agency to refrain from delivering absentee ballots to voters who do not appear on a federally approved voting list. Brodsky and Gallo deferred to the courts for resolution of this issue.

As we went to press, state election authorities still were awaiting final rules from the USPS on a definitive federal court decision relating to the legality and constitutionality of Trump’s executive order restricting mailed absentee ballots. Under the order, the Postal Service is directed to stop the delivery of absentee ballots in any state that does not develop a voting list in a federally prescribed format.

In addition, the USPS is required to stop the delivery of a ballot to an otherwise eligible voter who does not appear on a USPS voting list with an associated, unique intelligent bar code. Under regulations proposed by the USPS, the agency would launch a portal through which states could submit a list of vote-by-mail voters, along with the unique codes for each voter.

It is unclear how much this initiative will cost and how it will be funded, if it survives legal challenge. In May, a Washington-based federal court declined to block the executive order. However, other federal courts are deliberating over the matter.