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U.S. Postal Service Begs for Funding, Warns It Could Run Out of Money by End of September

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  • The U.S. Postal Service is asking lawmakers for $89 billion to help keep it afloat, warning that it could run out of operational funds by the end of September.
  • The coronavirus pandemic led to a drastic 30% decline in mail volume last week, with the service estimating a 50% drop by the end of the third quarter. 
  • Still, postal employees have continued to deliver essentials like prescriptions, mail-in ballots, medical supplies, and more all over the country and Democrats warn that without them, many could lose access to necessary goods. 
  • Lawmakers have been battling to agree on relief deals, with some believing conservatives and the Trump administration are using the pandemic to force the mail service towards privatization. 

Post Office Sees Drastic Mail Decline 

The U.S. Postal Service is begging lawmakers for $89 billion to help to keep it from crumbling, saying it could run out of operational funds by the end of September if it doesn’t receive financial assistance. 

In a video conference Thursday with members of the House Committee on Oversight and Reform, Postmaster General Megan Brennan told lawmakers that the USPS believes it will see a “$13 billion revenue loss” this year due to the coronavirus pandemic. Their projections say the virus could cost the agency another $54 billion over the next decade.

The U.S. Postal Service has faced financial struggles for some time now, but the pandemic has added new strain that quickly escalated problems. Mail volume has drastically declined in recent weeks as businesses all over the world close their doors, pause their services, and cut back on advertisements. 

The mail volume had dropped by 5.3% four weeks ago, according to Rep. Gerry Connolly, a Virginia Democrat and the chairman of the oversight subcommittee that oversees the USPS. Last week, it saw a 30% decline and the post office estimates that it could see as much as a 50% drop in the third quarter of this year. 

Package volume has increased, however, packages only make up less than 30% of total revenue for the agency.

But even with the declining volume of mail, postal workers have remained on the front line of the crisis, delivering essential goods like medical supplies, prescriptions, lab test materials, mail-in ballots, paperwork for unemployment claims, and other crucial items. Like medical professionals, grocery store employees, and countless other essential workers, they too are struggling with low stocks of protective gear as they work to deliver these items amid the pandemic.

Unlike other private mail carriers, the U.S. Postal Service is required to deliver goods all over the country, including in rural areas where profit margins are smaller. Without its services, Democrats warn that vulnerable populations would lose their access to necessary items. 

USPS Asks For Help 

The Postal Service is asking Congress for the $89 billion to help keep it running.

According to House Democrats, the USPS is asking for $25 billion in federal grants to cover lost revenue from the pandemic, $25 billion in “unrestricted borrowing authority from Treasury,” and another $25 billion to help modernize its aging infrastructure. It is also requesting $14 billion needed to pay off debt related to a retirement benefits program. 

“At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business,” Brennan told The New York Times Thursday. “The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover.”

Lawmakers Battle Over How to Help

The battle between Republicans and Democrats over funding for the mail system has been fierce and efforts to give the agency money in the $2.2 trillion stimulus package failed.

As far as President Donald Trump’s stance on the issue, he argued that the agency could fix its economic problems by raising prices of packages delivered by big online retailers like Amazon. 

“They have to raise the prices to these companies that walk in and drop thousands of packages on the floor of the Post Office and say, ‘Deliver it,’” Trump said at a press briefing this week. “And if they’d raise the prices by actually a lot, then you’d find out that the Post Office could make money or break even. But they don’t do that. And I’m trying to figure out why.”

According to CNN, sources told the network that the Trump administration rejected any direct funding for the USPS when Democrats tried to include $25 billion for the agency during discussions. Instead, the USPS was promised it could apply for $10 billion in loans with the Treasury Department. The problem there is that loans come with strings attached that Democrats say add more burdens to the struggling agency. 

Some lawmakers, postal union workers, and others who rely on the agency fear that the Trump administration is using the crisis to try and achieve conservative’s long-running goal of pushing the mail service towards privatization.  Many believe that the administration is trying to do this by forcing the service into tough loan terms or into bankruptcy, which would help commercial competitors like UPS and FedEx.   

Democrats have been increasingly vocal about assisting the post office in recent days, drawing in support with the hashtag #SaveThePostOffice which was trending Friday.

“As Congress and the Administration take steps to support businesses and industries around the country, it is imperative that they also take action to shore up the finances of the Postal Service, and enable us to continue to fulfill our indispensable role during the pandemic, and to play an effective role in the nation’s economic recovery,” Brennan said in a statement.

“We are at a critical juncture in the life of the Postal Service,” she added. “At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business.”

See what others are saying: (CNN) (The New York Times) (Fox News

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After Uvalde, Politicians, Public Figures, Gun Violence Survivors, and More Call For Change

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“When are we going to do something?” Golden State Warriors Coach Steve Kerr asked during an emotional plea at a press conference. 


Uvalde Shooting Kills 21 People

Democratic politicians, activists, and many others are calling for gun reform in the United States after 19 children and two teachers were killed in a Tuesday shooting at Robb Hill Elementary School in Uvalde, Texas.

The 18-year-old suspected gunman was reportedly killed by officers. The massacre marks the 27th school shooting of 2022, according to Education Week.

It also comes just a week and a half after 10 people were killed in a shooting in Buffalo, New York, and another shooting in a Southern California church left one person dead and several others injured.

Sen. Chris Murphy (D-Ct.) spoke fervently on the Senate floor Tuesday, slamming his colleagues for refusing to pass gun control legislation that could prevent future shootings. 

“What are we doing?” he asked of his fellow lawmakers. “Why do you spend all this time running for the United States Senate? Why do you through all the hassle of getting this job, of putting yourself in a position of authority, if your answer is, as the slaughter increases, as kids run for their lives, we do nothing? What are we doing? 

“Why are you here if not to solve a problem as existential as this?” he continued. “This isn’t inevitable. These kids weren’t unlucky. This only happens in this country.” 

“And it is a choice. It is our choice.”

President Joe Biden likewise urged action by supporting the now-expired assault weapons ban.

“We can do more. We must do more,” he added.

Public Figures And Shooting Survivors Speak Out

The demands for change spread far past political figures. Golden State Warriors coach Steve Kerr took time out of a pre-game press conference to passionately plead for common-sense gun control. He specifically called on Senators to vote on H.R. 8, a background check bill previously passed in the House.

“When are we going to do something?” Kerr asked while slamming his hands on the table.  

“I ask you, Mitch McConnell, I ask all of you senators who refuse to do anything about the violence and school shootings and supermarket shootings. I ask you: Are you going to put your own desire for power ahead of the lives of our children and our elderly and our churchgoers?” Kerr continued. “Because that’s what it looks like.” 

He went on to say that Americans, who largely support background checks, are “being held hostage by 50 Senators who refuse to even put it to a vote.” 

Grammy Award-winning musician Taylor Swift shared his message, adding that she is filled with “rage and grief” not just from the shootings, but by “the ways in which we, as a nation, have become conditioned to unfathomable and unbearable heartbreak.”

“It doesn’t have to be this way,” tweeted David Hogg, an activist and survivor of the 2018 school shooting in Parkland, Florida. “The way we will make this time different is by Americans on both sides of the aisle collaborating on what we can agree on to get something done even if small. Kids are dying we have to do something.”

Manuel Oliver, the father of one of the children lost in the Parkland shooting, slammed the inaction of politicians in an interview on CBS News

“The families don’t need your freaking hearts,” Oliver said. “They need their kids, and the kids are not there anymore. So I feel very angry and offended and I just don’t understand how come a whole society doesn’t wake up.” 

People impacted by the 2012 Sandy Hook shooting also spoke out, including Mary Ann Jacob, who worked as a librarian at the school during the shooting.

“I’m so sorry those deaths did not change our world,” Jacob wrote. 

Texas-based figures felt especially compelled to stand up as the tragedy hit so close to home. Academy Award-winning actor Matthew McConaughey, whose hometown is Uvalde, wrote a message on social media asking Americans to “take a longer and deeper look in the mirror and ask ourselves, ‘What is it that we truly value?’”

“We have tragically proven that we are failing to be responsible for the rights our freedoms grant us,” McConaughey wrote. 

“Action must be taken so that no parent has to experience what the parents in Uvalde and the others before them have endured.”

Fellow Texas native Selena Gomez also took to social media to argue for action.

“If children aren’t safe at school where are they safe? It’s so frustrating and I’m not sure what to say anymore,” the “Only Murders in the Building” star wrote on her Instagram story. “Those in power need to stop giving lip service and actually change the laws to prevent these shootings in the future.”

We make it a point to not include the names and pictures of those who may have been seeking attention or infamy and will not link out to websites that might contain such information.

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Lawmakers Call For Action as Oil Companies Post Record Profits Amid Rising Gas Prices

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A recent analysis from the Center for American Progress found that the top five oil companies earned over 300% more in profits during the first quarter of 2022 than the same period last year.


As Consumer Prices Climb, Big Oil Profits

American oil companies are facing increased scrutiny over profiteering practices as gas prices continue to surpass record highs driven by Russia’s ongoing war in Ukraine.

Last week, costs surged to above $4 per gallon in all 50 states for the first time ever, according to the auto club AAA. Prices are currently averaging over $4.59 per gallon nationwide, which is 50% higher than they were this time last year.

In addition to consumers hurting at the pump, there are also rising concerns for industries that rely on fuel and oil like trucking, freight, airlines, and plastic manufacturers. 

To account for high prices, some in sectors have responded by ramping up prices further down the supply chain to account for costs, putting even more of a burden on consumers to pay for everyday items.

But as Americans struggle with sky-high gas prices at a time of record inflation, recently released earnings reports show that many of the world’s largest oil companies thrived in the first quarter of 2022.

ExxonMobil more than doubled its earnings from the same period last year, reporting a net profit of $5.5 billion. Meanwhile, Chevron logged its best quarterly earnings in almost a decade, and Shell had its highest earnings ever.

According to a new analysis conducted by the Center for American Progress, the top five oil companies — including the three mentioned above —  earned over 300% more in profits this quarter than during the same time last year.

“In fact, these five companies’ first-quarter profits alone are equivalent to almost 28 percent of what Americans spent to fill up their gas tanks in the same time period,” the report noted.

Per Insider, for at least four of those companies, that growth marks a tremendous increase in profits from even before the pandemic.

Lawmakers Ramp-Up Efforts to Reduce Prices

To address these startling disparities, federal lawmakers have moved in recent weeks to increase pressure on oil companies and take steps to lower prices.

On Thursday, the House of Representatives passed a bill proposed by Rep. Katie Porter (D-Ca.) that aims to reduce gas prices. The legislation, called The Consumer Fuel Price Gouging Prevention Act, would give the president the authority to issue an Energy Emergency Declaration that would be effective for up to 30 days with the possibility of being renewed.

In that emergency period, it would be illegal for anyone to increase gas or home energy fuel prices to a level that is exploitative or “unconscionably excessive.” 

The proposal would also give the Federal Trade Commission the power to investigate and manage instances of price gouging from larger companies and give state authorities the ability to enforce price-gouging violations in civil courts.

The bill, which has already seen widespread opposition from Republicans and extensive lobbying from pro-oil interest groups, faces an uphill battle in the 50-50 split Senate.

During debate on the act Thursday, Rep. Porter delivered an impassioned speech accusing oil companies of driving their record profits by using their market power to unfairly increase prices.

“The oil and gas industry currently has more than 9,000 permits to drill for oil on federal land, but they are deliberately keeping production low to please their investors and increase their short-term profits,” she said. “Even when the price of crude oil falls, oil and gas companies have refused to pass those savings on to consumers.”

“Let me be clear: price gouging is anti-capitalist,” Porter continued. “It exploits a lack of competition, which is a hallmark of capitalism. It is an effort to juice corporate profits at the expense of customers. Energy markets are reeling because of Russia’s invasion of Ukraine. Big oil companies, however, are using this temporary chaos to cover up their abuse.”

See what others are saying: (The Washington Post) (Vox) (NPR)

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Lincoln College to Close for Good After COVID and Ransomware Attack Ruin Finances

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Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.


One of the Only Historically Black Colleges in the Midwest Goes Down

After 157 years of educating mostly Black students in Illinois, Lincoln College will close its doors for good on Friday.

The college made the announcement last month, citing financial troubles caused by the coronavirus pandemic and a ransomware attack in December.

Enrollment dropped during the pandemic and the administration had to make costly investments in technology and campus safety measures, according to a statement from the school.

A shrinking endowment put additional pressure on the college’s budget.

The ransomware attack, which the college has said originated from Iran, thwarted admissions activities and hindered access to all institutional data. Systems for recruitment, retention, and fundraising were completely inoperable at a time when the administration needed them most.

In March, the college paid the ransom, which it has said amounted to less than $100,000. But according to Lincoln’s statement, subsequent projections showed enrollment shortfalls so significant the college would need a transformational donation or partnership to make it beyond the present semester.

The college put out a request for $50 million in a last-ditch effort to save itself, but no one came forward to provide it.

A GoFundMe aiming to raise $20 million for the college only collected $2,452 as of Tuesday.

Students and Employees Give a Bittersweet Goodbye

“The loss of history, careers, and a community of students and alumni is immense,” David Gerlach, the college’s president, said in a statement.

Lincoln counts nearly 1,000 enrolled students, and those who did not graduate this spring will leave the institution without degrees.

Gerlach has said that 22 colleges have worked with Lincoln to accept the remaining students, including their credits, tuition prices, and residency requirements.

“I was shocked and saddened by that news because of me being a freshman, so now I have to find someplace for me to go,” one student told WMBD News after the closure was announced.

When a group of students confronted Gerlach at his office about the closure, he responded with an emotional speech.

“I have been fighting hard to save this place,” he said. “But resources are resources. We’ve done everything we possibly could.”

On April 30, alumni were invited back to the campus to revisit the highlights of their college years before the institution closed.

On Saturday, the college held its final graduation ceremony, where over 200 students accepted their diplomas and Quentin Brackenridge performed the Lincoln Alma Mater.

Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.

See what others are saying: (The New York Times) (Herald Review) (CNN)

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