On March 8, 2022, the Senate passed the $107 billion Postal Service Reform Act (H.R. 3076, S. 1720) by an overwhelmingly bipartisan vote of 79-19. The Postal Service Reform Act previously passed the House last month by a margin of 342-92. This bill is intended to address long-term financial challenges for the USPS, including repealing a mandate that required the USPS to pre-fund retirement for all employees, and is expected to save the USPS nearly $50 billion over the next decade. This much-needed reform was a key step in addressing structural issues created by the 2006 Postal Accountability and Enhancement Act.

The Congressional Budget Office estimates this postal reform bill would reduce FEHB premiums for federal employees and annuitants, including savings for the government’s share of contributions for non-postal annuitants and $827 million for federal employees. Further, analysis from the Office of Personnel Management shows an expected 1 percent decrease in FEHB premiums, once H.R. 3076’s reforms would take effect (in Fiscal Year 2025).

FMA has signed on to multiple letters with the Fed-Postal Coalition in support of this important legislation and has been a strong proponent of it for several years. President Biden is expected to sign this legislation into law in short order.