News from Washington COVID-19 relief and recovery update The 117th Congress convened - NALC
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News from Washington
COVID-19 relief and recovery update
T
he 117th Congress convened
on Jan. 3, and while it will be
spending much of January
configuring operations, leadership,
committee assignments and priorities
for this Congress, it will remain re-
sponsible for responding to the needs
of Americans as COVID-19 cases spike
and relief and recovery needs remain
pressing.
Prior to adjourning the lame-duck
session of Congress just days before
Christmas, lawmakers passed a
$2.3 trillion combined omnibus/relief
pack-age that included $900 billion for
COVID-19 relief and $1.4 trillion to keep
the government funded until Sept. 30,
2021. The deal, which at press time
had been sent to the president for his the Emergency Coronavirus Relief Act
signature, came together after months of 2020—included language converting
of failed negotiations between the the $10 billion loan previously ap-
leaders of the Senate and the House of proved in the Coronavirus Aid, Relief,
Representatives. and Economic Security (CARES) Act
House Democratic leaders previous- (Public Law 116-136) into a grant. That
ly had called for a comprehensive $3.4 is a far cry from the $25 billion public-
trillion deal in additional relief fund- service appropriation NALC sup-
ing, while Senate Republican leaders ported to help the Postal Service cover
failed to advance two packages in the COVID-19 expenses. On the appropria-
$600 billion to $900 billion range. tions front, the government funding
In the end, it was the efforts of a bi- measure preserved six-day language
partisan group of senators, prompted for mail delivery.
to act by the House Problem Solvers Unfortunately, the COVID-19 deal
Caucus (a group whose influence has failed to include hazard pay for letter
risen in Congress with its ability to carriers and other front-line employ-
identify areas of commonality and el- ees. The deal also failed to include an
evate legislation on those issues) that extension of paid Family and Medical
led to the deal. In fact, the Problem Leave Act (FMLA) leave provisions for
Solvers Caucus was instrumental in employees whose school or child care
passage of the Postal Service Fairness is closed due to COVID-19, or the man-
Act (H.R. 2382), which moved to repeal date for emergency paid sick leave,
USPS’s mandate to pre-fund retiree which provided up to 80 hours of paid
health benefits. That bill was passed in leave for COVID-19-related absences.
the House earlier this year but was not Both provisions went into effect in
taken up in the Senate. April under the Families First Corona-
Regarding the Postal Service, the virus Response Act (FFCRA) but ex-
deal reached days before Christmas— pired Dec. 31, 2020. Instead, lawmak-
January 2021 The Postal Record 5
News
ers included a tax credit for employers two points of major
who choose to extend emergency paid contention between
sick leave, thus ending the mandate. the parties. Democrats
“Members of Congress will need to ended up dropping
step up to the plate in the next Con- demands for nearly $1
gress for letter carriers and the Postal billion in additional
Service,” NALC President Fredric Ro- state and local fund-
lando said. “NALC remains steadfast ing, while Republi-
in ensuring that letter carriers and the cans abandoned their
network are protected, and we expect demand for liability
the new administration and Congress protections for corpo-
to do the same as we remain on the rations worried about
front lines of this pandemic.” COVID-19-related law-
General provisions of the deal also suits from sick workers.
include $166 billion for another round Both issues are expect-
of direct payments—$600 per adult ed to re-emerge in the
making under $75,000 adjusted gross next round of relief and
income and $600 per child; $120 recovery negotiations in
billion for a 10-week extension of un- the new Congress.
employment insurance in the amount Relief and recovery
of $300 per week; $325 billion for small efforts are far from over.
businesses, mostly for an extension of Check the Government
the Paycheck Protection Program (not Affairs section of the
including unions); $12 billion for com- NALC website to get the Postal Service’s financial health and
munity banks; $45 billion for transpor- latest news on this and all NALC priori- maintains high quality service standards
tation—including $14 billion in airline ties this Congress. and performance. As adopted, these
payroll support; $69 billion for vaccine rules are necessary to enable the Market
testing, tracing and distribution; $82 Postal Regulatory Commission Dominant ratemaking system to achieve
billion for schools; $25 billion in rental adopts new rulemaking the statutory objectives set forth… .”
assistance and an eviction morato- In its review, the PRC determined
rium through Jan. 31, 2021; $26 billion On Nov. 30, the Postal Regulatory
that while the PAEA’s rate-setting sys-
for nutrition assistance and agricul- Commission (PRC) released its “Statuto-
tem was largely successful in stream-
tural losses; $10 billion for child care ry Review of the System for Regulating
Rates and Classes for Market Dominant lining the process, it did not increase
assistance and $7 billion to expand
Products” (Docket No. RM2017-3). The pricing efficiently, had not achieved
broadband.
rulemaking stems from the requirement short- and long-term financial stability
The deal also makes COVID-19 relief
imposed by the Postal Accountability measures, and did not ensure high-
funds available for states and localities
and Enhancement Act of 2006 (PAEA), quality service. The revised rulemak-
for another year, includes an exten-
sion of employee retention tax credit, which directed the PRC to implement ing provides the Postal Service with
allows lower-income Americans who a new rate-setting system and review additional rate authority to address the
experienced wage loss in 2020 to use that system 10 years after enactment to Postal Service’s largest deficiencies—
earned income tax from 2019 to receive evaluate whether it meets the statutory financial losses from declining mail
larger refunds, and allows agencies to objectives of the PAEA. volume and the cost of pre-funding
reimburse contractors who were un- The PRC noted that the objectives retiree health care—while maintain-
able to work due to COVID-19-related of the PAEA were “to create a flexible, ing a CPI-based price cap system. The
facility closures. stable, predictable, and streamlined price cap is liberalized to allow for rate
Notably absent from the deal were ratemaking system that ensures the adjustments to address declining mail
6 The Postal Record January 2021
density, which increases the per-piece Biden agency review team teams, pulling together top experts
cost of delivering mail. The PRC’s order includes NALC chief of staff “responsible for understanding the
also allows for rate authority to ad- operations of each agency, ensuring a
dress the amortization costs of certain NALC Chief of Staff Jim Sauber has
smooth transfer of power, and prepar-
retiree liabilities. According to the PRC, been serving on the Biden-Harris tran-
ing for President-elect Biden and Vice
the rulemaking gives the USPS Board sition’s Agency Review Team for the
President-elect Harris and their cabinet
of Governors the decision-making au- United States Postal Service.
to hit the ground running on Day One,”
thority to ensure operational efficiency On Jan. 20, President-elect Joe
Biden said in a statement announcing
and quality service standards. Biden will be inaugurated and become
the agency review teams. “These teams
The PRC noted its removal of a pro- the 46th president. As is customary,
the president-elect has been using are composed of highly experienced
posed performance-based rate author- and talented professionals with deep
ity, opting to instead issue a separate the time between Election Day and
inauguration, known as the presiden- backgrounds in crucial policy areas
rulemaking to study rate-setting effects across the federal government. The
on service. tial transition, to prepare for the new
administration. teams have been crafted to ensure they
The PRC will review this new system
Part of this preparation involves not only reflect the values and priorities
after five years of implementation to
creating a formal transition team to of the incoming administration but re-
determine if it is meeting objectives
work with the outgoing administra- flect the diversity of perspectives crucial
that include:
tion on the peaceful transfer of power. for addressing America’s most urgent
(1) To maximize incentives to reduce The goal is to ensure the continuity and complex challenges.”
costs and increase efficiency. (2) To of government services and a smooth In his role on the agency review
create predictability and stability in handoff between administrations, team, Sauber is joined by former
rates. 8 (3) To maintain high quality which is especially crucial this year Deputy Postmaster General Ron Stro-
service standards established under with the pandemic and the associated man, New York University’s Xavier
section 3691. (4) To allow the Postal Briggs, Care Journey’s Aneesh Chopra
economic crisis.
Service pricing flexibility. (5) To and Boston Consulting Group’s Mat
Immediately following the election,
assure adequate revenues, includ-
Biden also established agency review Hernandez. PR
ing retained earnings, to maintain
financial stability. (6) To reduce the
President-elect
administrative burden and increase Joe Biden
the transparency of the ratemaking
process. (7) To enhance mail security
and deter terrorism. (8) To establish
and maintain a just and reasonable
schedule for rates and classifications,
however the objective under this
paragraph shall not be construed to
prohibit the Postal Service from mak-
ing changes of unequal magnitude
within, between, or among classes
of mail. (9) To allocate the total in-
stitutional costs of the Postal Service
appropriately between market-domi-
nant and competitive products.
The final rulemaking will go into
effect 30 days following publication in
the Federal Register.
January 2021 The Postal Record 7
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