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In Other News, CBO Says Postal Service Reform Bill Could Save $6.2 Billion Over 10 Years

In Other News, CBO Says Postal Service Reform Bill Could Save $6.2 Billion Over 10 Years
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It turns out, there are things happening in Washington other than investigations into Russia, healthcare reform and President Donald Trump’s tweets. An under-the-radar Postal Service reform bill would save the country $6.2 billion over the next decade, according to the Congressional Budget Office.

The bill would allow the USPS to raise prices on certain mail categories and phase out direct-to-business mail delivery. In addition, it would establish a new health benefits program for USPS employees.

The Bill's Uphill Battle

While budget-minded Americans and USPS employees are eagerly-anticipating the changes, the changes may take a while to go into effect, Height Securities analyst Edwin Groshans said. The reason the bill hasn’t gotten much media coverage is because it’s not a top priority at the moment in Washington.

“The impending retirement of House Oversight and Government Reform Committee Chairman Jason Chaffetz (R–UT), the bill’s lead sponsor, and other legislative priorities that Congress must tackle (healthcare reform, tax reform, infrastructure, debt ceiling to name a few), presents an uphill battle for postal reform to make its way onto the crowded legislative agenda in the near future,” Groshan’s wrote this week. He predicts the postal reform bill won’t be approved before the end of 2017.

Related Link: Post Office Reform Act Likely Dead This Year After House Republican Investigating Trump Steps Down 

The USPS has generated negative taxpayer income for 10 consecutive years, losing $62 billion total in that time.

“A longstanding decline in mail volume coupled with an increase in costs associated with salaries and benefits are driving losses for USPS,” Height’s Shrey Verma wrote last month.

The USPS’s largest workshare partner, Pitney Bowes Inc. (NYSE: PBI), and its investors will continue to monitor the postal reform bill’s progress closely.

Image Credit: By Michael Rivera - Own work, CC BY-SA 4.0, via Wikimedia Commons

Latest Ratings for PBI

Jun 2018Maxim GroupInitiates Coverage OnBuy
Nov 2017Loop CapitalMaintainsHold
Aug 2017Sidoti & Co.UpgradesNeutralBuy

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