President Obama on Monday proposed bailing out the U.S. Postal Service, urging that it be allowed to cut mail delivery to five days a week and raise the price of postage.
He also proposed allowing the service to get a $6.9 billion refund from an over funded pension fund.
“Bold action is needed,” Obama said. “The administration recognizes the enormous value of the U.S. Postal Service to the nation’s commerce and communications, as well as the urgent need for reform to ensure its future viability.”
Unless the government acts quickly, he said, the service will be insolvent by the end of the month, when it will have used up its cash reserves, will have reached its government mandated borrowing limit of $15 billion, and will be unable to make a required $5.5 billion payment to its retiree health program.
Obama also proposed restructuring the Postal Service’s pension plan and allowing it to sell non-postal goods to bring in more money.