House Oversight and Government Reform Committee Chairman Darrell Issa says the time has come for Congress to enact reforms to the U.S. Postal Service “to avoid a taxpayer-funded bailout.”
The California Republican made the comment as the Postal Service predicted a $9 billion loss by the end of the year and raised the possibility of having to ask Congress to raise the agency’s debt limit to $15 billion to help cover health benefit and other financial obligations to its employees.
“These deficits clearly cannot be closed by bailing out the Postal Service with taxpayer money or allowing the Postal Service to amass obligations to employees, retirees and taxpayers that are unlikely to be fully met in the future,” Issa said.
Issa said only “serious cost-cutting structural reforms” would help reduce costs. “The Postal Service must adapt its outdated brick-and-mortar model to meet current customer needs,” he said.
The agency has already been forced to close many offices nationwide, reduce hours, and lay off workers. Those efforts have helped, but losses are expected to continue as more people and businesses shun the traditional use of mail to correspond electronically.
© 2016 Newsmax. All rights reserved.