April 14, 2021
After drawing down $8.464 billion of its CARES Act appropriation, USPS was reported by Treasury to hold $25.77 billion in cash and securities in the Postal Service Fund on March 31, 2021. This is a record amount of cash held by USPS. They have access to another $1.5 billion in CARES money and $1 billion in borrowing capacity.
Combined with a year-to-date profit, this record cash hoard makes the second set of rate increases USPS plans this year, the 3X- to 4X-inflation taxing authority granted by the PRC, all the more superfluous and absurd.
Why are the USPS managers bound and determined to take the additional $2.3 billion annually from customers still recovering from the pandemic while they are sitting on over $25 billion and making a profit? Because they have been asking for the taxing authority for over a decade. Because the regulator has taken four years to grant the new taxes. Because the time value of money says take it as soon as you can. Because they are likely to lose the appeal in the U.S. Court of Appeals. And because the court will roll back the increases, but not make the agency return the billions unlawfully taken from mailers in the meantime.