The U.S. Postal Service (USPS) reported a $9.5 billion loss for fiscal year (FY) 2024. This is a significant increase from last year, when the USPS reported a $6.5 billion net loss. In total, the USPS has lost more than $100 billion over the past fifteen years and expects to lose an additional $60-70 billion by 2030. These losses have accumulated even as the agency has repeatedly changed leadership, hiked stamp prices, and pursued consolidation measures. The USPS’s reckless policies have completely failed taxpayers and consumers. It was bad enough when the agency hiked the price of First-Class Mail Forever stamps from 68 cents to 73 cents in July. Recently, the USPS proposed raising stamp prices five more times within the next three years, ostensibly to meet their “legal obligation to be financially self-sufficient.” Agency leadership doesn’t seem to understand a basic point that should’ve been obvious years ago: stamp price hikes won’t turn around their finances. Stamp prices have
skyrocketed 50 percent over the past ten years, all the while postal debt has exploded. It’s time for a different approach. Out-of-control labor costs continue to derail any hope of postal reform. Compensation costs make up around 80 percent of total postal expenses, and a recent agreement with the National Association of Letter Carriers will add even more red ink. Retroactive pay bumps on top of already-growing compensation is a recipe for disaster for the beleaguered agency. Instead of relying on a costly career labor force, the USPS should take a page from the private sector and rely more on temporary and seasonal workers. This would allow for a more flexible operating model, saving the USPS billions of dollars per year. USPS leadership needs to stop passing the buck and embrace reform. Taxpayers cannot afford continued bailouts of the agency. Consumers cannot afford five more stamp price increases over the next three years. Change won’t be an easy task, but it most certainly is
necessary for America’s mail carrier.

Time for Entitlement Reform

Irrespective of whether politicians reform Social Security and Medicare, those programs will experience benefit cuts in roughly a decade’s time. Either lawmakers will design these cuts — with which age cohort they will begin, how they will account for income, etc. — or they will occur automatically as trust funds become insolvent. Social Security faces a 21 percent benefits reduction by 2033; Medicare, an 11-percent reduction by 2036. Ignoring the issue is not an option. Taxpayers should have little optimism that Congress, should it continue to procrastinate until it reaches the brink of insolvency, would succeed in enacted well-crafted reforms. However, initiating these reforms now — while time remains to deliberate, negotiate, and fully consider the issues at hand — would allow the nation to avoid assured chaos in the 2030s. In January, Republicans will assume control of a unified government. The fiscally conservative impulses of the party of Calvin Coolidge and Andrew Mellon should once
again reassert themselves. However, the sort of overhaul Social Security and Medicare require must have bipartisan support and participation. As the national debt climbs towards $40 trillion, anyone — of any party — should welcome such efforts. It is less a matter of political preference than simple mathematics. Admitting you have a problem is the first step to fixing it, as the saying goes. “Spending on [Social Security and Medicare] alone consumes 45 percent of the federal budget,” Veronique de Rugy noted in 2023. “Along with Medicaid, these programs are the drivers of our current and future debt. And to drive home the seriousness of our predicament, note that Medicare and Social Security together face a shortfall of $116 trillion over the next 30 years.”

Social Security consumes an astounding portion of public resources. It “is the single largest federal government program, spending $1.2 trillion in 2023 or 4.5 percent of gross domestic product (GDP),” analysts Romina Boccia and Ivane Nachkebia wrote. With a projected annual deficit in the hundreds of billions, it faces a $23 trillion cumulative deficit through the year 2053 and will balloon to 5.2 percent of GDP by 2033.

Medicare, the second largest program, is faring little better. Medicare outlays reached $1 trillion (3.8 percent of GDP) in 2023 and will likely top $2 trillion (more than 5 percent of GDP) within a decade. Its projected 30-year shortfall sits at $77 trillion. Fortunately, the American people, when confronted with cold realities, support reform. According a 2023 poll from the Taxpayers Protection Alliance (TPA), voters believe lawmakers have done far too little to ensure Social Security and Medicare remain operational. Voters overwhelmingly like these programs; and the political hazards that attend attempts to reform them today will likely pale next to the chaos that, absent such reform, will erupt from insolvency and mandatory benefits cuts.

In January, a new Congress will sit, and a new president will move into the White House. They should recognize reality and proceed accordingly.

Wasteful Defense Contracts

As taxpayers are painfully aware, government contracts can easily go awry. Federal taxpayers paid Boeing an astounding $3.9 billion to build two Air Force One aircraft; costs have ballooned with taxpayers on the line for ancillary costs. Now, the Department of Defense is doubling down on fiscal misfeasance by hiring a discredited company to safety-test drugs that have already been approved by the Food and Drug Administration. Given that the Pentagon can’t stop failing its annual financial audits, these bank-breaking contracts are terrible news for taxpayers. The Pentagon must stop squandering money and give taxpayers a break on opaque contracts.

In August 2023, the Defense Department announced that it had inked a “Cooperative Research and Development Agreement” with a company called Valisure to “generate objective drug quality data through independent sourcing and testing for metrics that are expected to differentiate the quality of available manufacturers of a given list of drugs.” Never mind that the FDA monitors drug quality, coordinates recalls, keeps an eye out for contaminated medicines, and maintains stringent import controls. Between taxes and user fees, the agency rakes in about $7 billion yearly to do its job. Given the FDA’s excessive risk aversion and meddling in drug development, the agency could probably take its foot off the gas and do its job on a leaner budget. However, given the agency’s overzealous enforcement, it makes little sense to duplicate already robust FDA efforts.

It makes even less sense to entrust this effort to Valisure. In December 2022, the FDA sent the company a letter pointing out that its online pharmacy didn’t take the time to investigate suspect or illegitimate products and strayed from FDA reporting requirements. The agency further pointed out that Valisure “failed to establish and document the accuracy, sensitivity, specificity and reproducibility of its test methods.” While the company was using FDA testing techniques such as the Gas Chromatography-Mass Spectrometry method and the Liquid Chromatography High Resolution Mass Spectrometry methods to detect product abnormalities, the FDA found that the company was serially misapplying these methods and coming to faulty conclusions. In addition, Valisure failed to “provide sufficient evidence that (testing) equipment was qualified for its intended purpose and could robustly perform the required operations.” In science, “trust me bro” is no substitute for rigorous research and documentation.
The Taxpayers Protection Alliance Foundation has sent multiple Freedom of Information Act requests to Defense and the FDA to get to the bottom of this botched testing, but it has yet to hear back. Yet, Defense insists that taxpayers and consumers trust Valisure to vouch for medications already approved by the FDA. In its press release announcing the contract, the department cites statutory requirements in the National Defense Authorization Act (NDAA), which instructs the Pentagon to “assess risks to the Department’s pharmaceutical supply chain.”

However, the Pentagon doesn’t need to reinvent the wheel to deliver on Congress’ mandate. Defense officials could comply with the NDAA language by paying close attention to FDA recalls and the latest agency warning letters sent to suspect suppliers. It could also prioritize drug brands that have ample supply and manufacturing capacity. The department needn’t rely on a contractor with a spotty testing record to double-check a federal agency’s findings. If Congress wants to bolster the safety and availability of drugs for consumers, focusing on FDA reform would be a far more promising route than vague NDAA language. As the Taxpayers Protection Alliance notes in a 2023 report on FDA reform, the agency is failing to use all the empirical data (e.g., studies using historical data) to evaluate medications.

Lawmakers can push the FDA toward considering all the evidence and creating a more holistic approval process. This is far better than bilking taxpayers for costly and unnecessary contracts.

BLOGS:

Tuesday: Taxpayer Watchdog Urges Louisiana to Level Playing Field for Marketplace Facilitators ([link removed])

Wednesday: The Next Congress Must Pursue Entitlement Reform ([link removed])

Thursday: Energy Abundance Should Be a Priority for the Trump Administration ([link removed])

Friday: TPA Warns Congress Against an Omnibus Funding Bill ([link removed])

Media:

November 7, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA for their story on the Baltimore mayor and overlooking organizations misuse of tax dollars.

November 8, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, “Transparency gaps leave experts concerned about Baltimore's taxpayer-backed youth fund.”

November 8, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, “Digging into DJS reveals information sharing gap.”

November 9, 2024: WZTA 1370 AM (Vero Beach, Fla.) interviewed me for their segment on government spending.

November 9, 2024: The Baltimore Sun (Baltimore, Md.) quoted TPA in their article, “FOX45: Transparency gaps leave experts concerned about Baltimore’s youth fund.”

November 9, 2024: The Maryland Gazette (Annapolis, Md.) quoted TPA in their article, “FOX45: Transparency gaps leave experts concerned about Baltimore’s youth fund.”

November 9, 2024: The Baltimore Post (Baltimore, Md.) quoted TPA in their article, “FOX45: Transparency gaps leave experts concerned about Baltimore’s youth fund.”

November 9, 2024: The Baltimore Sun (Baltimore, Md.) quoted TPA in their article, “FOX45: Digging into the Department of Juvenile Services reveals information sharing gap.”

November 9, 2024: The Baltimore Post (Baltimore, Md.) quoted TPA in their article, “FOX45: Digging into the Department of Juvenile Services reveals information sharing gap.”

November 10, 2024: The Baltimore Sun (Baltimore, Md.) quoted me in their article, “Look into Department of Juvenile Services reveals information sharing gap.”

November 11, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on President-elect Trump’s plan for tax reform and his ideas discussed in his campaign.

November 11, 2024: WCBM 680 AM (Baltimore, Md.) interviewed me for their story on Project Baltimore.

November 11, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, “Maryland leaders brace for uncertainty under second Trump term.”

November 11, 2024: The Baltimore Sun (Baltimore, Md.) quoted TPA in their article, “Oversight sought for youth fund Millions in taxes sent to nonprofits, but some not reflected on tax forms.”

November 11, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA for their story on Baltimore federal spending.

November 11, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA for their story on the Department of Public Works.

November 12, 2024: WJLA-TV ABC 7 (Arlington, Va.) quoted TPA in their article, “Maryland leaders brace for uncertainty under second Trump term.”

November 12, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA for their story on the Department of Public Works.

November 12, 2024: The Baltimore Sun (Baltimore, Md.) quoted TPA in their article, “FOX45: Maryland leaders brace for uncertainty under second Trump term.”

November 12, 2024: The Maryland Gazette (Annapolis, Md.) quoted TPA in their article, “FOX45: Maryland leaders brace for uncertainty under second Trump term.”

November 12, 2024: The Baltimore Post (Baltimore, Md.) quoted TPA in their article, “FOX45: Maryland leaders brace for uncertainty under second Trump term.”

November 12, 2024: Inside Sources ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 12, 2024: WMAL 105.9 FM (Washington, D.C.) quoted TPA for their story on Republicans bringing money into Maryland.

November 12, 2024: Fox Eyewitness News (Charleston, W.V.) quoted TPA for their story on Baltimore federal spending.

November 12, 2024: The Antigo Daily Journal (Burlington, Wisc.) ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 13, 2024: The Detroit News (Detroit, Mich.) ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 14, 2024: American Family News quoted TPA in their article, "Tax group says Vivek, Elon are on right track with DOGE but will have to work with Congress."

November 14, 2024: The Milton Courier (Milton, Wisc.) ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 14, 2024: WBOB Salem Radio Network (Jacksonville, Fla.) interviewed me for their segment on government spending and waste.

November 14, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Maryland’s projected budget shortfall and predicted deficit increase.

November 14, 2024: The Herald (New Britain, Conn.) ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 14, 2024: The Bristol Press (Bristol, Conn.) ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 14, 2024: The Chronicle (Willimantic, Conn.) ran TPA’s op-ed, “Taxpayers deserve better than wasteful defense contracts.”

November 14, 2024: RealClear Health ran TPA’s op-ed, “FDA Drug Rejections Have One Fatal Flaw.”

Have a great weekend!

Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 500
Washington, D.C. xxxxxx

============================================================
** ([link removed])
** Like Us On Facebook ([link removed])
** ([link removed])
** Follow Us On Twitter ([link removed])
Our mailing address is:
1101 14th Street NW
Suite 1120
Washington, DC xxxxxx

Want to change how you receive these emails?
You can ** update your preferences ([link removed])
or ** unsubscribe from this list ([link removed])