US Postal Service Needs $ 10 Billion Loan To Fight Coronavirus After Months Of Negotiations And Trump Attacks | Zoom Fintech
The Treasury Department announced on Wednesday that it had reached an agreement to increase that United States Postal Service (USPS) by about $ 10 billion under a provision of the coronavirus relief program adopted by Congress in March. after months of discussions – and hostility from President Trump, who ridiculed the Postal Service as a “joke.”
Although the loan was approved months ago as a member of this Coronavirus Aid, Relief and Economic Security Act (CARES), the offer allowed Treasury Secretary Steve Mnuchin to negotiate the conditions of this loan with the postal management, which resulted in a delay of several months. by sending the capital.
Trump referred to as the USPS a “joke” in late April and said “this thing is losing billions of dollars” and “if they don’t raise the price, I’m not signing anything”, speaking of his efforts to long time to find the agency to charge more.
For decades Trump promised the costs were too low and in 2018 he pushed their office manager to charge Amazon and other major e-commerce retailers more to send packages, claiming the USPS was losing. money on the lots delivered to themselves.
In the USPS statement on Wednesday, Postmaster General Louis DeJoy reported that the loan would “delay the approach of the liquidity crisis”, including that the postal service “still remains on an unstable track” and that it will continue to work to put it on a “long term trajectory”. financial stability over time.
Planning to take office in mid-June, DeJoy – a government contributor to Trump – has spawned significant operational changes that may slow email delivery, such as telling letter carriers to quit emails in charge of call centers. delivery in case of delay and come back to pick up. would delay them out of their way, based on some Washington post report.
Most Trump critics fear that a politicized Postal Service could cause electoral chaos this season, when more mail-in ballots (which Trump scoffed at) will likely be used – as a report in the New Yorker warned on Wednesday: “[Trump’s] demagoguery and also DeJoy’s nomination raise obvious questions as to whether the direction of email voting is going to be manipulated in favor of Trump’s re-election.
The finances of the Post Office have been a problem for several decades. He reported a net loss of $ 8.8 billion in 2019, $ 4.9 billion from the previous year. Current spending for the year was $ 79.9 billion, an increase of $ 5.4 billion, or 7.3%, from 2018. Postal service finances have been favored since the pandemic of coronavirus has made people dependent on shipping solutions. The pandemic has had a substantial effect on employees. The National Letter Carriers Association (NALC) reported on July 15 that about 2,100 of its 8,000 postal workers currently in quarantine have tested positive for the virus, and at least 500 other people are believed to be optimistic. They said another 3,000 postal workers who had previously tested positive have recovered and returned to work, but 72 postal workers died from the virus, including 15 mail carriers.
“The Postal Service is in a financially unsustainable position, due to a substantial drop in mail volume and a broken business model, ”DeJoy said in a July 27 statement urging Congress and the Postal Regulatory Commission to adopt legislative and regulatory reforms.
In 2018, USPS administrators told the the Wall Street newspaper Trump’s desire to increase package prices for Amazon as well as other major retailers stems from his desire to harm Amazon because of the unfair policy he believes he obtained from the Washington post, which will be owned by Amazon founder and CEO Jeff Bezos.