Post Office $5.6 Billion Default Raises Urgency of Reforms

Photo Credit: APWith Congress and the media focused on the government shutdown and how to avoid default on the national debt, little attention was directed toward the U.S. Postal Service which earlier this month defaulted on a required $5.6 billion payment for the healthcare of its future retirees.

The third default on the down-payment in just over a year underscores the necessity of much-needed reforms for the beleaguered Postal Service.

Rep. Darrell Issa of California told Newsmax that without “the freedom to realign its infrastructure and operations in line with the changing way Americans use mail, the agency will remain insolvent.”

“Prolonged insolvency of USPS will result in a massive taxpayer bailout and ongoing subsidy, or a sudden disruption in mail service, or both,” the California Republican said.

Just days before the default, USPS Board of Governors Chairman Mickey Barnett announced an increase in the price of stamps beginning in 2014, which he said was the result of USPS’ “precarious financial condition” and the “uncertain path toward enactment of postal reform legislation.”

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