Unless Congress takes action now, the future of the United States Postal Service is in jeopardy. If Congress will enact a sensible, sweeping reform of the postal service, we can protect taxpayers from another bailout and make it possible for USPS to implement a sustainable business plan for the future. The problems facing USPS are many: declining mail volume, an aging fleet of delivery vehicles, an outdated brick-and-mortar retail network, the burden of honoring labor agreements that account for 80 percent of the USPS annual budget, and the absence of an efficient mechanism for addressing these crises. Together, these realities have accounted for more than $20 billion in aggregate deficits since 2007 and could mean losses in excess of $42 billion over the next four years, according to USPS’ own projections.

The primary challenge to USPS comes from the precipitous drop in mail volume that has accompanied the digital age. Since 2000, when nearly 80 percent of household bill payments were made by mail, the number of homeowners shifting to forms of electronic payment has more than quadrupled. At this rate, USPS predicts that mail will drop an additional 30 percent off of a 2006 peak volume of 213 billion pieces. Given these numbers, USPS employs roughly 200,000 more workers than are needed to handle current mail volume.