On April 6, 2022, President Biden signed the $107 billion Postal Service Reform Act (H.R. 3076) into law. This followed the bipartisan votes of 79-19 in the Senate and 342-92 in the House earlier this year. This bill is intended to address long-term financial challenges for the USPS, including repealing a mandate that required the USPS to pre-fund retirement for all employees, and is expected to save the USPS nearly $50 billion over the next decade. This much-needed reform was a key step in addressing structural issues created by the 2006 Postal Accountability and Enhancement Act.

The Congressional Budget Office estimates this postal reform bill would reduce FEHB premiums for federal employees and annuitants, including savings for the government’s share of contributions for non-postal annuitants and $827 million for federal employees. Further, analysis from the Office of Personnel Management shows an expected 1 percent decrease in FEHB premiums, once H.R. 3076’s reforms take effect (in Fiscal Year 2025).

FMA has signed on to multiple letters with the Federal-Postal Coalition in support of this important legislation and has been a strong proponent of it for several years.