Congressional Budget Office says Senate postal reform bill would cost $6.3 billion over ten years

The Congressional Budget Office has released its analysis of S. 1789, the postal reform legislation introduced by Senator Joe Lieberman, and co-sponsored by Senators Tom Carper, Scott Brown and Susan Collins:


S. 1789 would change the laws that govern the operation of the United States Postal Service (USPS). Major provisions of the bill would:

  •  Transfer more than $11 billion in surplus retirement contributions from the Civil Service Retirement and Disability Fund (CSRDF) to the Postal Service Fund;
  • Change the payments that the Postal Service is required to make to the Postal Service Retiree Health Benefits Fund (PSRHBF);
  • Permit the Postal Service to reduce mail delivery from six days per week to five;
  • Authorize the Postal Service to offer employees credit for additional years of service as an incentive to retire; and
  • Reduce payments to most federal workers receiving benefits under the Federal Employees¡¦ Compensation Act (FECA) and reform the administration of that act.

In addition, other provisions of S. 1789 would aim to help the Postal Service reduce its costs and increase its revenues.

CBO estimates that enacting the bill would result in off-budget savings of $25.6 billion over the 2012-2022 period and on-budget costs totaling about $31.9 billion. (USPS cash flows are recorded in the federal budget in the Postal Service Fund and are classified as off-budget, while the cash flows of the PSRHBF, CSRDF, and the FECA account are on-budget.)

Combining those effects, CBO estimates that the net cost to the unified budget of enacting S. 1789 would be $6.3 billion over the 2012-2022 period. All of those effects reflect changes in direct spending. In addition, we estimate that enacting S. 1789 would decrease revenues by $15 million over the 2012-2015 period. Pay-as-you-go procedures apply because enacting the legislation would increase on-budget direct spending and decrease revenues.

Here’s the full report:

CBO Analysis of S. 1789

  • crazy

    Congress will never agree to stop the prefunding of benefits, because they spend that money on other things, which leaves nothing left to return. Going from 6 to 5 day delivery, they might as well take out the word service from their title. Stop the prefunding and let the USPS spend that on incentives for early retirement at all levels. They would get a lot of employees to take that early out, which would eliminate workforce that could eventually become close to what the different bills are suggesting. Taking away service to try and make the financial numbers work is not the answer, no matter how badly Issa wants to gut the system.

  • to all congress men

    some promising their constituents saying this” we will do all to make usps keep offices open at any costs” … translation… I dont care!
    some writing bills..s.2309, s.1789… while 2006 paea can create 6 billion profits per year inspite of equal loss by federal agency!…translation making profit out of loss incurred by the same person!…I can create such one to create more problems!…note 1789 is not so bad but not transprent enough to meet the future which is the 2010’s, which is futuristic.
    some creating bills like 1351..good job( but they have foes to rationalise that this is a mistake, but rest of America is with you seeing!)..beloved congress men think 300 million americans always nothing else.

  • auditors please see this

    to the auditors.. learn 101.. the profits which they think will reduce.. does not exist in the first place for it to reduce!… account to the right numbers not to what treasury is receiving due to miscalculation!

  • auditors please see this

    and also this presentation is focussed on federal budget defeceit, if this was due to spending like building new post officess .. then it is right! but this is $ which should not have been gotten to the feds! in the first place like a “tax refund. Is refund free $’s no it is overpayment” if feds can keep prefunding and now name this as a defecit, then IRS can keep all of Americas tax refunds too….extrapolating points!..scary though

  • repayment in 10 years!

    reapyment of overfunding in 10 years is not right.. it should be done in short term, for this created dents in the usps finaces…. feds should see usps as its body part.. it should not treat usps as foreign and hurt it.. if parts are in working order then the whole body is fine.

  • Stan

    Why don’t people wake up and start questioning people that will tell the truth?…We hear abd see what they want us to…..early retirement and foolish spending needs to be addresses…..QUIT CUTTING THE WORKING PEOPLE AND CUT AT THE TOP!!

  • Anthony

    First, leave the CSRS funds alone.
    Why are we showing a defeated attitude with the USPS?
    We should be thinking about competing with UPS and Fed Ex in the package business . There is still revenue to be made there.
    If it fits, it ships is a good service with priority mail.
    We have employee’s that can make the service great again.Unless the Senator’s and Congressional personnel leave the operation to Postal employees, we are not going to get better financially. We need legislations that will allow us to compete fairly.