Congress Passes Postal Reform Bill

The postal reform bill (H.R. 6407) that passed today in the US Senate and House of Representatives represents a major victory for the millions of businesses, nonprofit organizations, and consumers across the country that rely on the United States Postal Service (USPS).

The Direct Marketing Association (DMA) extends its appreciation to the legislators who worked tirelessly in the closing hours of the 109th Congress to ensure that a final compromise was reached that allowed the introduction of H.R. 6407 on Thursday and its passage in both houses overnight on Friday.

The final legislation reflects an agreement reached among key members of Congress, the Administration, and the mailing community.

Key Provisions

It contains all of the elements DMA and other mailing stakeholders have sought over the past several years, including:

-A cap that will tie future postal rate increases to the rate of inflation;

-A tight exigency clause defining the conditions for emergency rate increases;

-The return of the military retirement cost burden (some $27 billion) to the US Treasury; and

-Language supporting the continuation of worksharing agreements.

DMA Extends Its Appreciation

“Senators Susan Collins, Joseph Lieberman, and Tom Carper, and Representatives Tom Davis, Henry Waxman, John McHugh, and Danny Davis have been leaders on postal issues for many years,” said DMA President & CEO John A. Greco, Jr. “But over the past several days, they have really stepped up to the plate and done what was needed to bring this effort to a successful close.”

DMA also expressed its gratitude to its members as well as the many members of the mailing community who joined together in support of this much-needed legislation.

When this compromise bill is signed by President Bush, this will be the first comprehensive overhaul since the Postal Reorganization Act of 1970, which transformed the old cabinet-level Post Office Department into today’s United States Postal Service.

DMA has long held that postal reform will play a critical role in making sure that the Postal Service can continue to deliver the reliable, cost-effective service that consumers, businesses, and nonprofit organizations have come to expect.

“After working for more than a decade to ensure that the US Postal Service has the tools it needs for the 21st century,” said Greco, “we applaud today’s efforts and urge the President to quickly sign the measure into law.” “With more than 9 million jobs and $90 billion in commerce dependent on a viable postal service, this bill is a win for consumers, business, and the economy alike.”

Additional Information

The DMA will publish additional information on H.R. 6407 in the coming days.

In the meantime, DMA members are welcome to visit the postal section of our Web site, which is located at http://www.the-dma.org/postal