Instead, Mnuchin told lawmakers that the postal service could get a loan with conditions, or could get absolutely nothing. Desperate to save the agency, which was predicted at the time that the money would run out by October, lawmakers agreed to make the credit available. USPS announced a $4.5 billion loss for its last quarter of business on May 8, after warning that state intervention would be necessary to avoid a possible shutdown. The loss more than doubled from the $2.1 billion loss in the same period last year. International competition has also intensified for the USPS. From 1 July, a new price structure came into effect for small, low-value packages, increasing the prices of shipments that link several origin and destination mail systems. The deal comes after USPS warned earlier this year that it would run out of money by September without financial assistance. Mnuchin had insisted that this money be given in a loan if USPS makes changes like price increases for shipping. Democrats had publicly asked postal officials to stop funding from the Finance Ministry and not accept it if it meant waiving control of the agency. In the Senate, during a cycle of coronavirus exemption spending, a bipartisan agreement was reached to provide a $13 billion subsidy to the USPS, but Trump threatened to veto the entire bill – worth $2 trillion – and full of funds for unemployed workers, small businesses and other sectors that were swept away by the new Coronavirus pandemic recession – if postal funds were included. Democrats were boosted after the Post Office reported better-than-expected financial results in May. Due to the increase in parcel volume – postal workers say that parcels entering their distribution centers are clouding the Christmas level – the USPS now has nearly $14 billion in cash. Treasury Secretary Steven Mnuchin had previously tried to use the loan, which was linked to an early cycle of coronavirus relief spending, in exchange for full operational control of the postal service, including provisions that would allow the Trump administration to approve high-level postal personnel decisions, service contracts with third parties, collective bargaining strategies and high parcel prices.
By law, the Post Office must prove that its parcel business covers at least its costs, and the Postal Regulatory Commission reviews the service agreements negotiated between USPS and the companies to ensure that the agency receives a fair price. The U.S. Postal Service (USPS) has reached an “agreement in principle” with the U.S. Treasury for a $10 billion loan, which the agency needs to survive a sharp drop in mail volumes and shocking financial losses. The loan agreement was unanimously approved Tuesday by the USPS Board of Governors. The board of directors announced Wednesday that it expects the parties to formalize the agreement in credit documents developed in the coming weeks. Overview of MFGS, Inc.: In this exclusive Federal News Network survey, cybersecurity experts from the military and secret services provide an overview of how their agencies are redesigning their cybersecurity approaches to deal with evolving threats. President Trump has mocked the agency over the agreements, which industry experts say result in only about 5 percent savings. He called Amazon`s postal service “the delivery man” and falsely claimed that the agreements were the reason the agency fought financially.