HR-756-115
ASSUMING FIRST SPONSORSHIP - Mr. Garrett asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 756, a bill originally introduced by former Representative Chaffetz, for purposes of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
What it does
This bill would restructure how the U.S. Postal Service (USPS) funds health benefits and pensions for its employees and retirees, requiring Medicare-eligible postal retirees to enroll in Medicare Parts A, B, and D. It would reduce the USPS Board of Governors from nine to five members, shift delivery toward centralized mailboxes rather than door-to-door service, adjust postage rates, expand USPS authority to provide services to government agencies, and strengthen contracting ethics rules.
Who benefits
Current USPS employees and retirees would benefit from a dedicated health benefits risk pool that could lower their premiums. The USPS as an institution would benefit from reduced annual prefunding obligations and potential return of pension surpluses. Taxpayers and the federal government could benefit from reduced USPS financial losses. State, local, and tribal governments would gain access to USPS property and services. Non-union USPS employees would gain the right to appeal adverse personnel actions to the Merit Systems Protection Board.
Who is hurt
Postal retirees not previously enrolled in Medicare Part B would face new mandatory enrollment and its associated premiums (approximately $134/month in 2017). Residents in areas currently receiving door-to-door delivery — particularly elderly, disabled, or rural patrons — could face reduced convenience under a shift to centralized delivery. Mailers who rely on first-class mail would face a 1-cent postage increase. Political committees would lose access to the discounted nonprofit third-class mail rate. USPS workers in areas targeted for post office consolidation could face job losses.
Supporters argue
Supporters argue that the USPS faces a structural financial crisis driven largely by unsustainable retiree health benefit prefunding requirements and pension accounting methods that do not reflect postal-specific workforce data. By enrolling Medicare-eligible retirees in Medicare — a program they have already paid into — the bill would shift costs to a program designed for that purpose, reducing the USPS's direct liability and freeing resources for operations. Supporters contend that centralizing delivery is a proven cost-reduction strategy already used by growing communities, and that the governance changes would make the USPS more agile and accountable. They also argue that stronger contracting ethics rules would reduce waste and protect taxpayer dollars, and that returning pension surpluses to the USPS would correct a long-standing accounting inequity that has artificially inflated the agency's reported deficits.
Opponents argue
Opponents argue that mandatory Medicare Part B enrollment imposes new out-of-pocket costs on retirees who made career decisions based on existing benefit structures, effectively reducing promised compensation after the fact. They contend that shifting delivery to centralized mailboxes disproportionately burdens elderly, disabled, and rural residents who depend on door-to-door service and may have limited mobility. Critics also argue that reducing the Board of Governors from nine to five members concentrates governance authority and reduces the diversity of oversight perspectives. Opponents further contend that the 1-cent postage increase, while modest, adds costs for small businesses and individuals who rely heavily on first-class mail, and that expanding USPS services to government agencies could distort competition with private-sector vendors without adequate safeguards.
Constitutional context
The USPS is established under Article I, Section 8, Clause 7 (the Postal Clause), which grants Congress explicit authority to establish post offices and post roads — making this one of the clearest areas of federal legislative power. The Commerce Clause (Art. I, Sec. 8, Cl. 3) and Necessary and Proper Clause are also relevant to USPS rate-setting and service rules. The mandatory Medicare enrollment provision could raise Due Process questions regarding vested benefit expectations. The governance restructuring and creation of a consolidated Inspector General touch on the Appointments Clause (Art. II, Sec. 2). Post-Loper Bright (2024), any agency rulemaking under this bill — particularly OPM's actuarial valuations and the Postal Regulatory Commission's rate-setting — would be subject to independent judicial review rather than deference to agency interpretation.
Checks and balances
The bill shifts operational authority within the executive branch: it reduces the USPS Board of Governors (a quasi-independent body) from nine to five members, concentrating governance in fewer presidentially appointed officials. It removes the board's authority to delegate power to the Postmaster General, centralizing strategic control with the governors. The creation of a consolidated Inspector General — appointed by the President — brings USPS and PRC oversight more directly under executive branch appointment authority. The Postal Regulatory Commission retains and in some areas gains rate-setting authority, preserving an independent regulatory check on USPS pricing decisions.
Historical precedent
The Postal Accountability and Enhancement Act of 2006 (PAEA) established the retiree health benefit prefunding requirement this bill seeks to modify. The Postal Reorganization Act of 1970 created the modern USPS structure this bill partially restructures.