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Trump’s Tensions With USPS Block the Agency From Federal Funding Amid Crisis

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  • The United States Postal Service fears it could run out of money by September if it does not receive federal aid. It has seen a 30% decline in mail volume over the last week and anticipates $13 billion in losses this year.
  • While Democrats have tried to add funding to coronavirus bills for them, Trump has said he would not sign legislation that includes USPS funding.
  • Trump has a contentious history with the USPS. Some of these tensions stem from his dislike for Amazon’s Jeff Bezos. Trump believes that USPS loses money delivering Amazon packages and should charge more.
  • Republicans also are reluctant to give aid because they want to privatize USPS, which is the most favorable government agency amongst Americans.

USPS Requests Emergency Funding

As the United States Postal Service’s plea for money has been largely ignored or outright refused by Republicans, the disputed future of the agency has taken center stage. 

After reporting a 30% decline in mail volume in the last week, USPS is asking lawmakers for $89 billion, according to the New York Times. Without financial help, it could run out of money by the end of September. The agency is predicting a $13 billion revenue loss this year. 

While Democrats have worked to include funding for USPS in coronavirus relief and stimulus packages, there has been little interest from Republicans in including these measures. President Donald Trump has been equally closed off to it. 

“We told them very clearly that the president was not going to sign the bill if [money for the Postal Service] was in it,” a Trump administration official told the Washington Post. “I don’t know if we used the v-bomb, but the president was not going to sign it, and we told them that.”

This has left the USPS with the option of taking out a $10 billion loan from the Treasury Department, which would not carry them as far and could cause longer-term problems for them.

Trump Vs. USPS. Vs. Amazon

Trump’s cold shoulder to USPS is nothing new. The president has long been vocal about his frustrations, many of which stem from its relationship with Amazon. Trump is not a fan of Amazon or its leader, Jeff Bezos, who also owns the Washington Post. He has documented this over the years on Twitter, calling USPS Amazon’s “delivery boy,” and saying USPS makes Amazon “richer” and themselves “dumber and poorer.”

Because of this, Trump wants USPS to charge Amazon more so it can churn a bigger profit off of the online shopping giant. This idea, however, has faced no shortage of criticism. 

“Raising rates too much would lead private-sector competitors to develop their own cheaper methods to deliver packages,” Lori Rectanus, the director of physical infrastructure at the Government Accountability Office told the Post.

According to a New York Magazine piece from the end of 2019 said that raising prices with Amazon may not even benefit USPS. Trump has often stated that USPS loses $1.50 for every Amazon package it delivers, but writer Josh Barro claims that is a faulty number at best. Barro says that Trump is using a report from Citibank littered with mathematical errors, and that does not actually make that claim. 

“Citi makes no convincing argument that the post office is losing money on Amazon,” Barro wrote. 

“A rule forcing the post office to price packages higher, losing market share to private competitors, would lead to more unused capacity in the existing postal trucks, not to a right-sizing of the post office,” he added.

Privatizing USPS

On top of Trump’s rift with Amazon, for a long time Republicans have wanted to fully privatize USPS. The agency has seen a consistent revenue decline for years, and conservative lawmakers see turning it into a business as a way to bring in more money.

Hunter Walker, the White House correspondent for Yahoo News, wrote that this pandemic could give Republicans their shot at privatizing it if they wanted. Ronnie Stutts, the president of the National Rural Letter Carriers Association told Yahoo that plans to get funding for the USPS in stimulus packages seemed promising “until they got to the White House.”

The Treasury Department and Trump want “to privatize postal service,” he added.  

“There’s no two ways about it,” Stutts told Yahoo. “And when it got there, he killed it. They said no. He was not going to give us any money.”

Privatizing USPS would likely come with consequences. They would no longer have to fulfill the obligation of delivering mail anywhere throughout the country at an equal rate, something that would largely impact rural areas. 

Public Favorability for USPS

USPS saw a lot of support online over the weekend, with people using #SaveThePostOffice to encourage people to buy stamps and give the service revenue during this crisis. USPS gets no taxpayer money and only profits off of the services it provides, making it even more vulnerable during this time. 

Despite these efforts to put the post office at risk, the public actually has a favorable opinion of the agency, which is established in the United States constitution. According to a 2019 poll from Pew, it is the most favorable government agency in the, getting a 90% approval rating. This is even higher than the National Parks Service and NASA. 

See what others are saying: (Business Insider) (Vox) (Vanity Fair)

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Nearly 9 Million Are Without Water in Texas, Some Face Electric Bills up To $17,000

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  • More than 8.8 million people in Texas remained under boil water notices Monday, and over 120,000 had no water service at all. 
  • Gov. Greg Abbott (R) said Sunday that the state has distributed around 3.5 million bottles of water, though many of the lines to receive that water were plagued with hours-long waits.
  • Meanwhile, power outages in the state have fallen below 20,000, but many Texans are also beginning to receive astronomical electric bills of as much as $17,000.
  • Both Abbott and Houston Mayor Sylvester Turner (D) said those prices are not the fault of customers. While some form of forgiveness is likely, no immediate plan has been outlined yet. 

Millions Without Water

As of Monday morning, nearly 8.8 million people in Texas are still under boil water notices following last week’s snowstorm. That’s about one out of every three Texans.

Despite being a giant chunk of the state’s population, that figure is actually an improvement from 10 million people on Sunday. 

Another 120,000 Texans are still without water service at all.

Gov. Greg Abbott (R) said Sunday almost 3.5 million bottles of water have been distributed across Texas by helicopter, airplane, and truck.

The need for water has been extremely visible. An Austin City Council member shared a video on Twitter Sunday showing a massive line of vehicles waiting for clean water. Some waited for more than an hour before the distribution event began. At another site, she said cars began lining up more than five hours before the event. 

Abbott said the state is bringing in more plumbers to increase repair efforts for damaged water systems. Additionally, Abbott said homeowners without insurance could qualify for emergency reimbursement from FEMA.

Meanwhile, one large-scale effort from Rep. Alexandria Ocasio-Cortez (D-NY.) has now raised more than $5 million since first being launched on Thursday. That money will go to several organizations, including the Houston Food Bank, Family Eldercare, Feeding Texas, and the Bridge Homeless Recovery Center.

Texas Electric Bills Soar as High as $17K

All but just under 20,000 Texas homes and businesses have now had their power restored as of Monday morning.

That’s a stark contrast from the more than 4 million that were out of power at one point last week. 

While that’s largely good news, many Texans are now beginning to receive sky-high electric bills. That’s especially evident for those whose power stayed on during the storm. In fact, some people have now told multiple media outlets they’re facing bills as high as $17,000.

One 63-year-old Army vet, who was charged $16,752, told The New York Times that his bill was about 70 times higher than normal.

“My savings is gone,” he said. “There’s nothing I can do about it, but it’s broken me.”

As far as why his and others’ eclectic bills are so high, many people in Texas have plans that are directly tied to the wholesale price of electricity. Usually, that helps keep their costs low, but as demand for power surged during last week’s snowstorm, those prices hit astronomical highs. 

In a statement on Saturday, Abbott said Texas lawmakers “have a responsibility to protect Texans from spikes in their energy bills that are a result of the severe winter weather and power outages,” 

He added that the state Legislature is working “on solutions to help Texas families and ensure they do not get stuck with skyrocketing energy bills.”

In a similar tone, Houston Mayor Sylvester Turner (D) said in an interview with CBS on Sunday, “It’s not the consumers who should assume [these] costs. They are not at fault for what happened this week.”

That said, Turner also laid blame at the feet of the Legislature, calling the current crisis “foreseeable” on the part of lawmakers because a similar snowstorm and outages struck Texas in 2011.

Turner added that, at the time, he was part of the Texas legislature and had filed a bill that would have required the agency overseeing Texas’ grid to “ensure that there was an adequate reserve to prevent blackouts.”

“The leadership in Austin did not give it a hearing,” he said. 

While no aid has been fully guaranteed yet, Texas has prevented electric companies from being able to shut off power for people who don’t pay their bills on time. 

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

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Texans Still Face Broken Pipes, Flooding, and Carbon Monoxide Poisoning as Million Regain Power

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  • The number of Texans without power fell from 3.3 million on Wednesday to below 500,000 by Thursday.
  • Still, millions are currently under a boil advisory, pipes have burst as they begin to thaw, and some individuals have died or been hospitalized because of carbon monoxide poisoning. 
  • The Federal Emergency Management Agency said Wednesday that it has sent generators, water, and blankets to Texas, adding that it’s working to send additional diesel for generators.
  • Gov. Greg Abbott and President Joe Biden have also reportedly discussed the possibility of extra funding for people’s electricity bills, as well as for burst pipes.

Power May Be Back but Problems Persist

Power outages in Texas Thursday morning fell to under 500,000 — down from 3.3 million Wednesday morning. 

According to the state’s main grid operator, the Electric Reliability Council of Texas (ERCOT), the remaining outages are largely weather-related and not connected to problems related to forced outages. 

While that return of power to millions is significant, Texans are still facing a host of other problems.

For example, there have been numerous reports of carbon monoxide poisoning as people still without power try to keep warm in their cars or through other means. An adult and a child were found dead Tuesday after running their car inside of a garage, prompting Houston police to issue a statement warning that “cars, grills and generators should not be used in or near a building.”

Six children and four adults were rushed to the hospital Wednesday night for carbon monoxide poisoning after setting up grills inside their homes. 

Even for those now with power, water has become a major issue. On Wednesday, 7 million Texans were placed on a boil advisory and about 263,000 were without functioning water providers. 

One reporter tweeted out a video of people lining up at a park to fill up buckets of water.

“This is not a third world country,” she said. “This is Houston, Texas.”

The Food and Drug Administration and the National Weather Service have even cited melting and boiling snow as an emergency option if people can’t find water elsewhere, an option many have already turned to. 

For some, all these problems only seemed to compound in the form of burst pipes. One viral video shows water gushing out of a third-story apartment. Others posted images of their broken pipes and the damage they have caused. 

As a result, a number of local media outlets have begun to outline steps people can take once their pipes start to thaw or if they break. 

Amid Problems, Aid is Being Distributed

Alongside the overwhelming amount of problems, there has also been a large aid response.

A FEMA spokesperson said Wednesday that the agency has sent 60 “very large” generators to help keep hospitals and other critical infrastructure open. 

White House Press Secretary Jen Psaki added that FEMA is preparing to move diesel into Texas to keep that backup power going.

So far, FEMA said it has sent “millions of liters of water” and “tens of thousands” of blankets.

Governor Greg Abbott and President Joe Biden have also reportedly discussed the possibility of extra funding for people’s electricity bills, as well as for burst pipes. That’s because as the storm first hit, electrical demand surged. Since many Texans have plans connected to the wholesale price of electricity, they’re potentially set to be hit with sky-high bills.

Among other issues plaguing Texans is food spoilage; however, that can potentially be reimbursed through renters’ and homeowners’ insurance.

According to an official from the Insurance Council of Texas, “Food coverage is often related to personal property.”

Notably, there are some stipulations depending on individual circumstances and policy. To learn more about how insurance providers accept food spoilage claims, click here.

See what others are saying: (KTRK) (The New York Times) (Houston Chronicle)

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Texas Mayor Tells “Lazy” Residents “No One Owes You” Anything Amid Power Outages

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  • When residents in Colorado City, Texas turned to a local Facebook group to ask if the city or county had emergency shelter plans in place to keep people warm amid power outages, Mayor Tim Boyd shared a Facebook message that sparked outrage.
  • “Sink or swim it’s your choice! The City and County, along with power providers or any other service owes you NOTHING! I’m sick and tired of people looking for a damn handout!” he wrote before suggesting that those struggling are “lazy.”
  • “Only the strong will survive and the weak will parish,” he added. “Get off your ass and take care of your own family!”
  • Hours later, Boyd said he was speaking as a citizen since he had already turned in his resignation and had not signed up to run for mayor again ahead of the deadline a few days ago. It’s unclear when he actually resigned and he is still listed as mayor on the city’s website.

Mayor Under Fire

The mayor of Colorado City, Texas is facing intense backlash for comments he made on Facebook Tuesday claiming the local government has no responsibility to assist residents struggling amid historic winter temperatures.

The remarks came after community members turned to a local Facebook page asking if the city or county had emergency shelters in place to keep people warm amid widespread power outages.

In response, Mayor Tim Boyd wrote, “No one owes you [or] your family anything; nor is it the local government’s government’s responsibility to support you during trying times like this!”

“Sink or swim it’s your choice!” He continued. “The City and County, along with power providers or any other service owes you NOTHING! I’m sick and tired of people looking for a damn handout!”

Boyd argued that residents should come up with their own plans to keep their families safe. Those that are sitting at home in the cold waiting for assistance, he said, are “lazy” as a direct result of their raising.

“Only the strong will survive and the weak will parish,” he continued, likely meaning perish in his statement.

He blamed the calls for basic services like heat and electricity a product of a “socialist government where they feed people to believe that the FEW will work and others will become dependent for handouts.”

He closed by telling locals to “quit crying,” adding, “Get off your ass and take care of your own family!”

Source: KTXS

Mayor Doubles Down, Says He Already Resigned

That now-deleted post drew immediate backlash as Texans continue to slam the government for not delivering adequate support amid the storm.

The outrage eventually prompted Boyd to write a follow-up post, which he also later deleted.

In it, he claimed that his comments “were taken out of context” and did not apply to the elderly; however, he continued to double down.

“I was only making the statement that those folks that are too lazy to get up and fend for themselves but are capable should not be dealt a handout. I apologize for the wording and some of the phrases that were used!”

Boyd said he already turned in his resignation and had not signed up to run for mayor again ahead of the deadline a few days ago. He also said he wished he would’ve kept his words to himself or been more descriptive, and he added that all the anger and harassment since his post has caused his wife to lose her job.

Source: KTXS

Ultimately, he said he was speaking as a citizen since he is no longer mayor and called for the harassment of his family to stop.

According to The Washington Post, it isn’t immediately clear if he resigned before or after writing his controversial Facebook post. As of early Wednesday morning, the paper noted that he was still listed as mayor on Colorado City’s website, and city council agendas showed that he had served in that role as recently as last week.

See what others are saying: (The Washington Post) (KTXS) (People)

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