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Dear John,
In 2022, Congress passed legislation to help the US Postal Service survive by expanding into new services and building new revenue streams.
But Postmaster General Louis DeJoy has not made use of these opportunities. Instead of expanding services, he has reduced them, by closing dozens of post offices, cutting thousands of jobs, slowing mail delivery -- and losing $6.5 billion in 2023.
This planned obsolescence seems designed to dovetail with DeJoy’s original plans under Trump to privatize the post office as part of his ten-year plan to do away with the public post office altogether.
President Biden has not taken the steps needed to remove DeJoy, presumably as a sign of his willingness to work “across the aisle,” but as long as DeJoy remains as Postmaster General, the USPS will need to find creative ways to boost its revenues.
One of the most promising ideas for expanding post office services is postal banking. Demand Congress reintroduce and pass new postal banking legislation now!
Postal banking refers to offering simple banking services, such as cashing checks or managing checking and savings accounts, at local post office branches. Postal banking can both fill unmet needs in segments of society, and provide a public-based alternative to the corrupt big banks.
Over 1,200 underserved communities have been identified as banking deserts, defined by the US Census as a tract or neighborhood that has no bank branches within 10 miles of its center. These banking deserts are mostly in rural communities and low income urban neighborhoods. These areas have no bank, but they almost always have a local post office.
In addition to banking deserts, over 7 million individual American households currently are “unbanked,” that is, they have no access to a checking account or basic financial services. By setting up accounts at their local post office, these folks could use low-cost savings and checking accounts.
Postal banking could also offer alternatives to costly payday loan companies and the predatory banking practices of private banks, such as big fees on prepaid debit cards, outrageous credit card interest rates, and onerous overdraft fees.
With the Postmaster General taking no constructive actions to expand services, it’s up to Congress to introduce legislation such as the Postal Banking Act to find new revenue streams, and provide needed services to underserved communities.
Tell Congress to take action by adding your name now!
And thank you for helping to strengthen the US Postal Service.
Robert Reich
Inequality Media Civic Action
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