The Senate is expected to finish work on H.R.3076, The Postal Service Reform Act. The bill, which the White House and postal unions support, would eliminate a requirement that the Postal Service prefund retiree health benefits, saving what the Postal Service projects is at least $27 billion over 10 years. The bill would also require postal workers to enroll in Medicare when they reach 65 years old, something that Congress said about a quarter of the agency’s workers don’t do. That change would save the Postal Service about $22.6 billion over a 10-year period. It also would make permanent six-day-a-week delivery, a policy that Congress has put into annual appropriations bills as a bulwark against a conservative drive to force service cuts. The Postal Service would also be able to strike agreements with local governments to provide services like offering fishing, hunting and drivers’ licenses. Its supporters anticipate that the bill will also allow the Postal Service to invest in package-sorting equipment to speed mail-delivery and to restructure it for a world in which first-class mail will decline further while package delivery rises.
The Senate is continuing to negotiate the omnibus funding package. Without congressional action, federal agencies will run out of money around March 11th and could struggle to respond adequately to another emergency. The White House is asking Congress for $10 billion in emergency funding to boost its response to Russia’s invasion of Ukraine, part of a $32.5 billion supplemental request that also includes extra funds for fighting the pandemic. Of the $10 billion, $4.8 billion would go to the Pentagon and $5 billion to the State Department, with the remainder going to the departments of Treasury, Commerce, Justice and Energy. The administration is also requesting $1.25 billion for cyber and intelligence support to accelerate capabilities and upgrade weapons systems. Another $1.8 billion would cover the deployment of U.S. military units to support the U.S. European Command and NATO response forces. Those costs include transportation of personnel and equipment, temporary duty, special pay, flying hours, airlift, weapons, and medical support. The White House also will need $1.75 billion to replenish weapons and material stocks already provided to Ukraine. For the fight against Covid-19, the administration asked for $22.5 billion for immediate new investment in testing, anti-viral treatments, and improved vaccines in anticipation of a possible new variant and subsequent wave of infections. Funding would also flow to global vaccine efforts. Republicans have said new Covid spending should be paid for by repurposing unspent money from last year’s economic rescue plan. So far, lawmakers and the administration have yet to determine where those funds could come from. It is anticipated there will be strong Republican resistance to adding $22.5 billion in new COVID-19 relief to a $1.5 trillion omnibus spending package that negotiators are trying to wrap up by March 11th.
Also of note, the Senate Banking Committee is holding a hearing on the semiannual monetary policy report with Federal Reserve Chair Jerome Powell testifying.
The House is expected to complete consideration of H.R. 3967 – Honoring our PACT Act of 2021.
Adam S. Olsen, Washington, D.C.
