If a smidgen of suspense lingered earlier today about whether much of the government would shut down tomorrow, there was never the slightest doubt that the U.S. Postal Service would skip a legally required retiree health care payment for the third straight year.
Pretty much ever since the Postal Service defaulted on the 2012 payment, USPS leaders have been warning they would miss the $5.6 billion obligation due by midnight tonight; in another 15 minutes or so, the agency will officially be in default. Unlike past years, however, when an anxious Congress either cut the amount of the annual installment or pushed back the deadline, this year’s no-show routine now seems . . . routine.
But Sens. Tom Carper, D-Del., and Tom Coburn, R-Okla., sponsors of a Senate bill that would give the Postal Service some relief on the “prepayment” requirement, put out a joint statement calling the default a reminder of the agency’s broader financial woes. After holding two hearings on the bill earlier this month, Carper said, “I hope to move our bipartisan legislation swiftly through our committee and onto the Senate floor for a vote as soon as possible.”
The current pre-funding schedule is laid out in the 2006 Postal Accountability and Enhancement Act. According to numbers included in a Government Accountability Office report, the agency has made $17.9 billion in required payments and-as of tomorrow–will have defaulted on $16.7 billion worth.