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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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3 years ago

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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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Survey and Census Data Shows Record Number of Americans are Struggling Financially

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1 week ago

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May 23, 2023

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Americans are choosing not to pursue medical treatment more and more frequently as they encounter money troubles.

A recent federal survey shows that a record number of Americans were worse off financially in 2022 than a year prior.

Coupled with recent census data showing pervasive poverty across much of the country, Americans are forced to make difficult decisions, like foregoing expensive healthcare. 

According to a recent Federal Reserve Bureau survey, 35% of adults say they were worse off in 2022 than 2021, which is the highest share ever recorded since the question was raised in 2014. 

Additionally, half of adults reported their budget was majorly affected by rising prices across the country, and that number is even higher among minority communities and parents living with their children.

According to recent census data, more than 10% of the counties in the U.S. are experiencing persistent poverty, meaning the area has had a poverty rate of 20% or higher between 1989 and 2019. 

16 states report at least 10% of their population living in persistent poverty. But most of the suffering counties were found in the South — which accounts for over half the people living in persistent poverty, despite making up less than 40% of the population. 

These financial realities have placed many Americans in the unfortunate situation of choosing between medical treatment and survival. The Federal Reserve study found that the share of Americans who skipped medical treatment because of the cost has drastically increased since 2020. 

The reflection of this can be found in the overall health of households in different income brackets. 75% of households with an income of $25,000 or less report being in good health – compared to the 91% of households with $100,000 or more income. 

See what others are saying: (Axios) (The Hill) (Federal Reserve)

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Montana Governor Signs TikTok Ban

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2 weeks ago

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May 18, 2023

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The ban will likely face legal challenges before it is officially enacted next year. 

First Statewide Ban of TikTok

Montana became the first state to ban TikTok on Wednesday after Gov. Greg Gianforte (R) signed legislation aimed at protecting “Montanans’ personal and private data from the Chinese Communist Party.”

The ban will go into effect on Jan. 1, 2024, though the law will likely face a handful of legal challenges before that date. 

Under the law, citizens of the state will not be held liable for using the app, but companies that offer the app on their platforms, like Apple and Google, will face a $10,000 fine per day of violations. TikTok would also be subject to the hefty daily fine. 

Questions remain about how tech companies will practically enforce this law. During a hearing earlier this year, a representative from TechNet said that these platforms don’t have the ability to “geofence” apps by state.

Roger Entner, an analyst at Recon Analytics, told the Associated Press that app stores could have the capability to enforce the restriction, but it would be difficult to carry out and there would be a variety of loopholes by tools like VPNs.

Montana’s law comes as U.S. politicians have taken aim at TikTok over its alleged ties to the CCP. Earlier this year, the White House directed federal agencies to remove TikTok from government devices. Conservatives, in particular, have been increasingly working to restrict the app.

“The Chinese Communist Party using TikTok to spy on Americans, violate their privacy, and collect their personal, private, and sensitive information is well-documented,” Gov. Gianforte said in a Wednesday statement. 

Criticism of Montana Law

TikTok, however, has repeatedly denied that it gives user data to the government. The company released a statement claiming Montana’s law “infringes on the First Amendment rights of the people” in the state. 

“We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana,” the company said. 

The American Civil Liberties Union condemned Montana’s law for similar reasons. 

“This law tramples on our free speech rights under the guise of national security and lays the groundwork for excessive government control over the internet,” the ACLU tweeted. “Elected officials do not have the right to selectively censor entire social media apps based on their country of origin.”

Per the AP, there are 200,000 TikTok users in Montana, and another 6,000 businesses use the platform as well. Lawsuits are expected to be filed against the law in the near future.

See what others are saying: (Associated Press) (Fast Company) (CBS News)

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How a Disney-Loving Former Youth Pastor Landed on The FBI’s “Most Wanted” List

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1 month ago

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April 24, 2023

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 “Do what is best, not for yourself, for once. Think about everyone else,” Chris Burns’ 19-year-old son pleaded to his father via The Daily Beast. 

Multi-Million Dollar Scheme 

Former youth pastor turned financial advisor Chris Burns remains at large since going on the run in September of 2020 to avoid a Securities Exchange Commission investigation into his businesses.

Despite his fugitive status, the Justice Department recently indicted Burns with several more charges on top of the $12 million default judgment he received from the SEC. 

Burns allegedly sold false promissory notes to investors across Georgia, North Carolina, and Florida. The SEC claims he told the investors they were participating in a “peer to peer” lending program where businesses that needed capital would borrow money and then repay it with interest as high as 20%. Burns allegedly also reassured investors that the businesses had collateral so the investment was low-risk. 

The SEC says that Burns instead took that money for personal use. 

Burns’ History 

Burns began his adult life as a youth pastor back in 2007 before transitioning into financial planning a few years later.  By 2017, he launched his own radio show, The Chris Burns Show, which was funded by one of his companies, Dynamic Money – where every week Burns would “unpack how this week’s headlines practically impact your life, wallet, and future,” according to the description. He also frequently appeared on television and online, talking about finances and politics. 

The SEC alleges that he used his public appearances to elevate his status as a financial advisor and maximize his reach to investors.

His family told The Daily Beast that he became obsessed with success and he reportedly bought hand-made clothes, a million-dollar lakehouse, a boat, several cars, and took his family on several trips to Disney World. His eldest son and wife said that Burns was paying thousands of dollars a day for VIP tours and once paid for the neighbors to come along. 

Then in September 2020, he reportedly told his wife that he was being investigated by the Securities Exchange Commission but he told her not to worry. 

The day that he was supposed to turn over his business documents to the SEC, he disappeared, telling his wife he was just going to take a trip to North Carolina to tell his parents about the investigation. Then, the car was found abandoned in a parking lot with several cashier’s checks totaling $78,000

FBI’s Most Wanted

The default judgment in the SEC complaint orders Burns, if he’s ever found, to pay $12 million to his victims, as well as over $650,000 in a civil penalty. Additionally, a federal criminal complaint charged him with mail fraud. Burns is currently on the FBI’s Most Wanted list. 

Last week, the Justice Department indicted him on several other charges including 10 counts of wire fraud and two counts of mail fraud. 

“Burns is charged for allegedly stealing millions of dollars from clients in an illegal investment fraud scheme,” Keri Farley, Special Agent in Charge of FBI Atlanta, said in a statement to The Daily Beast. “Financial crimes of this nature can cause significant disruptions to the lives of those who are victimized, and the FBI is dedicated to holding these criminals accountable.”

His family maintains that they knew nothing of Burns’ schemes. His wife reportedly returned over $300,000 that he had given to her. 

She and their eldest son, who is now 19, told The Daily Beast they just want Burns to turn himself in, take responsibility for his actions, and try to help the people he hurt. 

“Do what is best, not for yourself, for once. Think about everyone else,” Burns’ son said in a message to his father via The Daily Beast. 

See what others are saying: (The Daily Beast) (Fox 5) (Wealth Management)

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