Hearings to examine reforming the U.S. Postal Service's business model

Health Care Costs and Drug PricingSenate Homeland Security and Governmental Affairs · 2026-06-24 · 119th Congress
The Senate Homeland Security and Governmental Affairs Committee met to examine the U.S. Begins at 0:13:52
Transcript
Highlights

Title

Postal Service financial losses, hiring freeze, and mail-in ballot rule

Purpose

The Senate Homeland Security and Governmental Affairs Committee met to examine the U.S. Postal Service's finances, including its controllable losses and near-exhaustion of its Treasury borrowing authority, and to press new Postmaster General David Steiner on cost-cutting steps. The hearing also became a venue for sharp partisan debate over a proposed USPS rule requiring states to submit absentee-voter lists tied to the "Kit 600" ballot-tracking system. Begins at0:13:52

Who spoke

Chair Rand Paul (R-KY)0:13:52: Said the Postal Service lost $117 billion since 2007 ($9 billion last year, ~$18 billion controllable) while adding 120,000 employees as volume fell0:14:220:15:37; pushed for an immediate hiring freeze worth an estimated $1.8 billion/year0:18:08 and floated cutting delivery to four days (saving ~$3 billion) or letting customers pay extra for six-day service0:32:03; repeatedly demanded a detailed savings plan and criticized former PMG DeJoy's spending1:56:00.

Sen. Gary Peters (D-MI), Ranking Member0:19:23: Cited $9.7 billion in controllable losses over five years and a $2.4 billion rate-authority boost from the PRC0:20:510:21:19; focused heavily on the proposed vote-by-mail rule, calling it an unconstitutional federal overreach into state-run elections0:23:420:24:26; also raised the death of USPS worker Nicholas Acker and a resulting nationwide safety audit0:22:18.

David Steiner, Postmaster General & CEO0:26:51: Testified USPS has a "broken business model" due to mandates like universal six-day delivery, price caps, and a $15 billion borrowing limit0:27:230:28:51; said USPS instituted a hiring and spending freeze ~40 days earlier0:32:54; stated bluntly "we are out of cash" and is borrowing from retirement funds to cover operations0:59:41; defended the Kit 600 ballot-barcode system as a longstanding best practice, not new policy0:43:26, and confirmed under the proposed rule USPS would not mail ballots without a state's voter manifest0:44:53.

Sen. Ron Johnson (R-WI)0:47:39: Noted $166 billion in remaining unfunded liability after the 2022 reform shifted $107 billion to Medicare0:49:02; pressed Steiner on employee retirement vesting periods, which Steiner could not answer0:49:28; questioned the cost of new "vanity" zip codes, cited at up to $800 billion0:50:37.

Sen. Maggie Hassan (D-NH)0:53:33: Got Steiner to commit to following any court order against the ballot rule0:54:49; cited New Hampshire on-time delivery falling over 10 points below the 87% target0:55:15; pressed for the five-year financial projections due Friday, which Steiner said he would meet0:57:46.

Sen. James Lankford (R-OK)1:00:47: Asked about delivery speed versus Amazon/UPS and USPS's "end-to-end visibility" initiative1:02:15; raised Oklahoma zip-code confusion (Enid/North Enid, Broken Bow)1:03:56.

Sen. Andy Kim (D-NJ)1:06:48: Questioned USPS use of mail carriers as Census enumerators, noting a prior pilot was discontinued over Title 13/Title 39 legal conflicts that Steiner said he was unaware of1:07:061:08:45; raised unresolved OSHA issues at the Trenton, NJ processing facility1:11:09.

Sen. Rick Scott (R-FL)1:11:48: Argued marketing mail is priced below cost due to PRC rules, citing a $700 million pricing decision that benefited mailers at USPS's expense1:14:59; said taxpayers ultimately cover USPS losses1:15:37.

Sen. Elissa Slotkin (D-MI)1:19:06: Contrasted proposed mail service cuts with recent war spending1:19:23; pressed Steiner on whether Michigan ballots would still be delivered without submitted voter rolls, and he confirmed current ballots move as normal1:22:42.

Sen. Joni Ernst (R-IA)1:25:08: Raised rural service downgrades under the Delivering for America plan's 50-mile hub radius1:25:36; described Urbandale, Iowa's six zip codes for one 47,000-person community1:28:59; touted her bill to end discounted rates for political mail (2.3 billion pieces/year)1:31:25.

Sen. Ruben Gallego (D-AZ)1:32:10: Described San Luis, Arizona's lack of home delivery despite growing from 2,000 to 35,000 residents, citing effects on disabled veterans and prescription access1:32:331:35:15.

Sen. Bernie Moreno (R-OH)1:35:55: Offered to help package reform legislation1:36:24; criticized Democrats over the 2021 "For the People Act" while accusing them of hypocrisy on the ballot rule1:37:15; asked Steiner about USPS's role fighting mail fraud and scams1:39:11.

Sen. Josh Hawley (R-MO)1:43:33: Displayed photos of thousands of dumped, undelivered mail pieces found in North St. Louis on April 29, and said Steiner was hearing about it for the first time1:44:031:45:05; cited 76% on-time delivery in Missouri in 20251:45:57; challenged Steiner's $305,781 bonus amid poor service and asked him to pledge to forgo bonuses, which Steiner declined to directly answer1:47:401:48:08.

Sen. Richard Blumenthal (D-CT)1:57:44: Pressed Steiner to confirm USPS has no constitutional authority to review or deny mail-in ballots1:58:55; got Steiner to confirm that under the proposed rule, USPS would withhold delivery if a state didn't submit the voter manifest2:01:19.

Key moments

Paul stated first-class mail volume is down 34% since 2014 while USPS workforce grew 9%, and labor is 80% of USPS costs versus ~60% at UPS0:16:39.

Steiner declared unambiguously "we are out of cash" and said USPS is currently borrowing from its own retirement plans to fund operations0:59:551:00:05.

Steiner disclosed USPS converted about 285,000 workers to career positions since 2020 even as revenue fell, locking in higher pay and pension obligations0:17:08.

Peters and Steiner sparred over the vote-by-mail rule: Peters got Steiner to confirm that under the proposal, USPS would refuse to mail ballots if a state doesn't turn over its voter manifest — "That's the answer. You'd tell them no"0:44:530:45:01.

Hawley confronted Steiner with photos of a pile of thousands of undelivered mail pieces (tax documents, prescriptions, bills) dumped in North St. Louis on April 29; Steiner said it was the first he'd heard of it despite prior letters from the delegation1:44:031:45:05.

Hawley pressed Steiner on his $305,781 bonus amid poor service; Steiner laughed and would not pledge to forgo future bonuses, prompting Hawley to call for his resignation if service doesn't improve1:47:401:49:14.

Paul and Steiner disputed the math on savings: transportation ($2B) and hiring freeze/labor savings ($3B) don't reconcile with a still-projected $9–10 billion net loss this year1:55:301:56:00.

Johnson noted the 2022 reform act's $107 billion Medicare offload of retiree liabilities left $166 billion in liability still unaddressed0:49:02.

Steiner said 58% (18,000) of post offices lose money, totaling over $2.5 billion in operating costs, and 84% of city and 52% of rural delivery routes are financially underwater0:27:230:27:51.

Blumenthal got Steiner to confirm USPS would still deliver ballots to voters a state certifies as registered, but under the proposed rule would withhold delivery absent a submitted voter manifest, calling the review "bogus"2:00:342:01:30.

Metadata

CommitteeSenate Homeland Security and Governmental Affairs
Chamber / CongressSenate · 119th Congress
Date2026-06-24
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript383 caption blocks · 17,105 words · 2:04:14 runtime
EventCongress.gov 338582