Maloney, Peters, Connolly, and Carper Question Terms of Treasury Loan to Postal Service
Washington, D.C. (July 29, 2020) – Today, Rep. Carolyn B. Maloney, the Chairwoman of the Committee on Oversight and Reform; Senator Gary Peters, the Ranking Member of the Homeland Security and Governmental Affairs Committee; Rep. Gerald E. Connolly, the Chairman on the Subcommittee on Government Operations; and Senator Tom Carper issued the following joint statement after the Treasury Department and U.S. Postal Service announced an agreement on a $10 billion loan provided for in the CARES Act:
“Secretary Mnuchin and the leadership of the U.S. Postal Service appear to be exploiting this public health pandemic to hold the Postal Service to unreasonable loan terms without even consulting Congress. The term sheet we have been provided would inappropriately insert the Treasury into the internal operations of the Postal Service using onerous loan conditions.
“These terms would severely limit the Postal Service’s access to capital and could accelerate the demise of the Postal Service that all Americans, especially seniors, small businesses, veterans and those living in rural communities, rely upon every day, especially during the pandemic. We will not stop fighting to protect this critical service that communities depend on and to ensure that every American can safely participate in the November elections.”
According to the Postal Service, the terms would allow the funding to be used only on operational expenses with approval of the Department of the Treasury. The restrictions threaten the independence of the Postal Service and put postal operations in the hands of the Trump Administration.
With an upcoming election that will depend on the mail more than ever and an ongoing pandemic keeping millions of Americans isolated in their homes, the Postal Service needs adequate funding.