US Treasury Agrees to Lend Postal Services $10 Billion as Part of Coronavirus Relief
The U.S Postal Service (USPS) has been granted with the agreement of a $10 billion relief loan from the Trump administration. On Wednesday, the government approved the terms of the loan the agency can apply on, as included in the recent coronavirus relief legislation.
The Treasury Department announced the news in response to the concerns about the future of the mail service. It has reported falling revenue and increasing the costs for the years while getting an onslaught criticism from President Trump, according to HuffPost. Initially, the loan was authorized in March under a major COVID-19 Relief Act passed by the Congress.
The revenue fell in recent years, but during the coronavirus pandemic, the Postal Service unexpectedly boomed in shipments. In April and May, the Postal Service reported that deliveries rose as Americans were forced to stay at home.
The mail service remains in an unsustainable path despite the support, according to the postmaster general. Steven Mnuchin, Treasury Secretary, said that USPS does not need to borrow now. Still, the money will be available to assure that the agency will be financially strained to access the relief loan. Mnuchin said, "While the USPS can fund its operating expenses without additional borrowing, we are pleased to have reached an agreement on the material terms and conditions of a loan, should the need arise."
The Postal Service provided copies of service agreements the agency made with major companies like FedEx and Amazon to the Treasury Department. Pres. Trump repeatedly claimed that the Postal Service favors Amazon, and without evidence, he added that the agency's woes were linked to the poor terms in the deals.
President Trump targeted Amazon and Jeff Bezos, Amazon's founder, previously on social media. The president is reported to call the Postal Service a "joke" and the tech giant, "delivery boy."
Postmaster General Louis DeJoy said that the access to a $10 billion relief loan would delay the approaching liquidity crisis. The USPS remains on an unsustainable path, but the management will continue to focus on improving the efficiency of the operations and will pursue other reforms to put USPS on a trajectory for long-term financial stability. DeJoy also said that throughout his tenure, he would uphold the service's "cherished role in our nation."
In a statement, DeJoy said that working with the Postal Service for many years have made him grateful for the institution and the workers who dedicatedly and faithfully execute the agency's mission. The head of the service added that USPS workers are the heart and soul of the institution honoring the work and their unions.
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