John,

4.5% of U.S. households are “unbanked”—meaning no one in the household has a bank account. That’s 5.9 million households. Not surprisingly, the households that were most likely to be underbanked are low-income, more likely to not have a college degree, more likely to have someone with a disability in the household, and are Black and Latine.^1,2

It’s no secret that Postmaster General Louis DeJoy has severely weakened the United States Postal Service (USPS) by closing dozens of post offices and laying off thousands of workers, all in the name of “cost cutting.” In actuality, the USPS is still in financial trouble, ending FY2023 with a $6.478 billion loss.³

One service that could not only strengthen the USPS and generate new revenue, but also serve individuals underserved by private institutions, is postal banking. Postal banking is simply the provision of financial services via the USPS.

With more than 30,000 post offices across the country, including more than 17,000 located in “banking deserts”, postal banking is the simplest and most obvious remedy for the struggle for those who are unbanked. It’s time for the USPS to offer access to basic savings and checking accounts at post offices nationwide.

Tell Congress: Pass postal banking legislation now.

Racist, discriminatory policies make traditional banks expensive, inaccessible, and often predatory towards those who don’t already have money—a disproportionate share of whom are people of color. For example, communities of color have less banking options in their neighborhoods and instead, are preyed upon by check cashing and bill pay services that charge usurious fees that can cost up to $2,400 annually.⁴

The FDIC found that 21.7% of unbanked households report they “don’t have enough money to meet minimum balance” as the main reason for not having an account.⁵

Postal banking isn’t a new, radical idea. We did it for a good chunk of the 20th century.

The Postal Savings Program ran from 1911 to 1967 and not only did it work, it helped connect immigrants and others to the banking system.⁶ A USPS Office of the Inspector General report found postal banking could generate as much as $8.9 billion in annual revenue, at a time when the post office really needs it.⁷

Postal banking is a win-win for the USPS and the millions of unbanked individuals in the U.S.

SIGN NOW to demand Congress reintroduce and pass legislation to re-establish postal banking.

Thank you for all you do,

Deborah Weinstein
Executive Director, CHN Action

¹ Millions of ‘unbanked’ Americans lack adequate access to financial services
² 2021 FDIC National Survey of Unbanked and Underbanked Households
³ The PMG’s 10-Year Plan: Veering off Course?
⁴ Banking Fair: The Promise and Urgency of Doing Postal Banking Right
⁵ Despite COVID-19 Pandemic, Record 96% of U.S. Households Were Banked in 2021
⁶ Banking Fair
⁷ Providing Non-Bank Financial Services for the Underserved