The U.S. Postal Service announced today that it would no longer deliver first-class mail, newspapers and magazines starting in early August, in an effort to stanch multi-billion-dollar deficits, but would continue regular parcel deliveries. The move, which could still be blocked by Congress or court action, is likely to affect rural Americans more than others. Their post offices could also be open less often.
...Congress has repeatedly passed legislation to guarantee six-day delivery, but Heath (right) said the postal service's legal position is that because the latest measure, the continuing resolution to fund the government, expires March 27, it can plan to stop six-day delivery after that "Postmaster General Donahoe explicity challenged the Congress by saying they could makes changes in the law to give relief," Heath told the Kentucky Press News Service. "That begs the question as to whether legislation requiring six-day, if passed or renewed, could not stop this unfortunate decision." (Read more)
Last year the Senate passed a broad postal-reform bill that would have helped USPS financially and guaranteed six-day delivery for two more years, but the House did not act on it.Officials predict the Saturday cutbacks will save $2 billion a year. Last year the Postal Service ran a deficit of almost $16 billion, Although new communication technology has decreased the amount of mail delivered, employee benefits are the primary source of its woes. The benefits Congress has required it to pay since 2006 accounted for nearly 70 percent of last year's deficit.