	Background: The Pursuit of Postal Reform

Legislatively, the pursuit of reform of the U.S. Postal Service (USPS) began during the 104 th Congress. 6407 , the Postal Accountability and Enhancement Act (PAEA). President George W. Bush signed it into law on December 20, 2006 (PAEA; P.L. 109-435 ; 120 Stat. 3198). A number of factors encouraged the movement for postal reform. Perhaps foremost were the financial challenges of the USPS. Yet the USPS's costs—about 76% of which were labor-related—rose with the addition of 2 million new addresses each year and mounting obligations for USPS future retiree health benefits. The act reduced the USPS's pension outlays. Alteration of the USPS's budget submission p rocess. Establishment of the Postal Service Retiree Health Benefits Fund . Possible PAEA Oversight Issues for Congress

The inherent complexity of lawmaking and the execution thereof invites disagreement and confusion over what a law means. As described earlier, the PAEA made numerous significant changes to U.S. postal law. However, his predecessor, President George W. Bush, did issue a signing statement that addressed a number of sections of PAEA, often in the context of the separation of powers. The Role and Performance of the Postal Regulatory Commission

PAEA replaced the Postal Rate Commission with the Postal Regulatory Commission. Congress has held many hearings on the USPS since enactment of the PAEA during which it has examined the implementation of PAEA and the role of the PRC. The law states:
Congress finds that—
(A) the Postal Service has more than 400 logistics facilities, separate from its post office network;
(B) ... the Postal Service has more facilities than it needs and the streamlining of this distribution network can pave the way for the potential consolidation of sorting facilities and the elimination of excess costs;
(C) the Postal Service has always revised its distribution network to meet changing conditions and is best suited to address its operational needs; and
(D) Congress strongly encourages the Postal Service to—
(i) expeditiously move forward in its streamlining efforts; and
(ii) keep unions, management associations, and local elected officials informed as an essential part of this effort and abide by any procedural requirements contained in the national bargaining agreements. The USPS's Authority to Provide Nonpostal Products and Services and the Viability of the USPS's Business Model

As noted above, Section 101 of the PAEA defined "postal service" to mean "the delivery of letters, printed matter, or mailable packages, including acceptance, collection, sorting, transportation, or other functions ancillary thereto."
President George W. Bush signed the Postal Accountability and Enhancement Act (PAEA; P.L. 109-435; 120 Stat. 3198) on December 20, 2006. The PAEA was the first broad revision of the 1970 statute that replaced the U.S. Post Office with the U.S. Postal Service (USPS), a self-supporting, independent agency of the executive branch.
This report describes Congress's pursuit of postal reform and summarizes the major provisions of the new postal reform law. The report also suggests possible PAEA-related oversight issues for Congress.
Legislatively, the pursuit of reform of the U.S. Postal Service (USPS) began during the 104th Congress, in 1996. A number of factors encouraged the movement for postal reform. Perhaps foremost were the financial challenges of the USPS.
A decade later, Congress enacted the PAEA, which made over 150 changes to postal law. Some of the more significant alterations are defining the term "postal service"; restricting the USPS's authority to provide nonpostal services; altering the USPS's budget submission process; requiring the USPS to prefund its future retiree health benefits by establishing the Postal Service Retiree Health Benefits Fund; and replacing the USPS's regulator, the Postal Rate Commission, with the more powerful Postal Regulatory Commission.
The inherent complexity of lawmaking and the execution thereof invites disagreement and confusion over what a law means and how it should be implemented. In the six years since the enactment of the PAEA, some issues and questions concerning the law's provisions have arisen. These include, but are not limited to, possible executive branch concerns about the PAEA and the separation of powers; the cost of prefunding USPS future retiree health benefits; the role of the public in the closure of nonretail postal facilities; the USPS's authority to provide nonpostal products and services, and the viability of the USPS's business model.
This report will be updated should events warrant.