House Subcommittee Holds Hearing to Examine Postal Service Revenue-Generation Initiatives

Postal Service has developed new products and services to address its financial challenges

FOR IMMEDIATE RELEASE: Wednesday November 4, 2009
CONTACT: Bruce Fernandez (202) 225-5147 Bruce.Fernandez at

WASHINGTON, D.C. – On Thursday, November 5, 2009 at 10:00am in room 2154 of the Rayburn House Office Building, the Subcommittee on Federal Workforce, Postal Service, and the District of Columbia will hold a hearing entitled, “More than Stamps: Adapting the Postal Service to a Changing World.”

The purpose of the hearing is to examine revenue-generation initiatives recently undertaken by the Postal Service in order to further address the agency’s ongoing financial challenges. In addition, the hearing is also expected to discuss existing barriers to the Postal Service’s ability to innovate its operations through the introduction of new products and services.

As one means of addressing its unprecedented fiscal challenges, the Postal Service has undertaken a series of revenue-generation activities and begun to consider additional innovative services and product offerings. Notably, since June of 2008, the Postal Service has begun to focus its attention on the diversification of its Mailing and Shipping Services, including the pursuit of an integrated business model based on private sector best practices. In addition, the Postal Service recently developed and implemented a Standard Mail Volume Incentive Program, providing eligible mailers with a 30% rebate on certain Standard Mail letters and flats volume during the summer of 2009. Furthermore, the Postal Service has begun to explore the viability of pursuing several new sources of revenue, ranging from the sale of flat rate priority shipping boxes to the implementation of banking, telecommunications, and insurance services in postal retail facilities.

“While the Postal Service, a self-funded government entity, has already implemented a series of cost-cutting efforts in response to its deteriorating financial condition, the current situation also mandates that the agency take significant and innovative steps designed to enhance its products and services and generate revenue,” said Chairman Stephen F. Lynch. “Meaningful oversight of these activities will serve to better ensure that the Postal Service is able to address its financial shortfalls by growing the value of the mail and by generating greater revenue. These actions will in turn minimize the impact of cost-cutting measures on our hardworking postal employees, mailers, postal operations, and the agency’s future viability.”

Witnesses’ testimonies, the Chairman’s opening statement, and a 10:00 a.m. live broadcast of the hearing can be found on the Subcommittee’s website,

The Subcommittee on Federal Workforce, Postal Service, and the District of Columbia’s jurisdiction includes federal employee issues, non-appropriation municipal affairs of the District of Columbia, and the Postal Service, including post office namings, holidays, and commemoratives

2 thoughts on “House Subcommittee Holds Hearing to Examine Postal Service Revenue-Generation Initiatives

  1. Sirs, The following are questions that spring to mind :
    1) By concept, is Postal Service a service entity or a corporation ?
    2) Is the current operating principle of the USPS saying that the recession will not end or is it just used as an opportunity to ram corporate changes thru ?
    3) Does the cost prohibitive manager to employee ratio that the USPS carries not a factor in terms of costs ?
    4) Are the overly business friendly postage sustainable or a reason for the postal deficit ?
    5) As one of the last decent middle class jobs available that has NOT been ” outsourced ” going to be turned over to illegal immigrants like the construction industry has to ” drive down ” costs ?
    6) Does everything have to be ” for profit ” ?
    7) Is the purpose of the government to use taxpayers money to develop a business or industry and then hand it over to private industry to make money on, like the renewable resource industries ?
    As the government has not been acting ” For the People ” since the 70’s; but instead, acting in the interest of whonsoever pays them the most, will there be anything left that it will do for the majority of the citizens in terms of the ” right ” thing to do ?

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