House GOP Budget Would Cut Compensation for Postal Workers

A postal worker delivers mail in Atlanta in 2013. A postal worker delivers mail in Atlanta in 2013. David Goldman/AP

The House Republican budget considered in committee Wednesday would require U.S. Postal Service employees to pay more for health care, using that reform and others to save $19 billion over 10 years.

Rep. Paul Ryan, R-Wis., targeted USPS employees in his budget blueprint as part of a larger effort to find cuts through the federal workforce. Ryan’s plan would also impose pension contribution hikes on all federal employees and reduce the size of the workforce through attrition measures.

Ryan pointed to the Postal Service’s large unfunded liabilities and continued losses to justify the need for reductions at the agency.

“The United States Postal Service is unable to meet its financial obligations and is in desperate need of structural reforms,” Ryan wrote in the budget.

The House Budget Committee chairman recommended giving USPS “the flexibility that any business needs to respond to changing market conditions,” and said the agency must reform compensation for its employees, who pay a smaller share of the costs of their health and life insurance premiums than other federal workers.

The American Postal Workers Union rejected Ryan’s proposals, noting USPS is not funded by taxpayers and therefore the cuts would not lead to deficit reduction.

Ryan’s postal provisions are a “thinly-veiled attempt to plunder the Postal Service -- to slash service, cut workers’ benefits and render our great national treasure ripe for privatization,”  APWU President Mark Dimondstein said.

The Postal Service was not the only agency Ryan singled out for cuts. The former Republican vice presidential candidate called the Internal Revenue Service bloated and proposed a simplified tax code, thereby “naturally reducing the agency’s size by promoting policies that lead to less reliance on the IRS.” He also said the Securities and Exchange Commission should not have nearly 4,000 employees, and the agency should “streamline and make more efficient its operations and resources.”

Ryan’s budget would place new caps on non-Defense discretionary spending, slashing agency expenditures beyond the levels set by sequestration. Office of Management and Budget Director Sylvia Mathews Burwell said the resulting cuts could, for example, reduce the number of Customs and Border Protection agents, federal prison guards and other law enforcement officials by several thousand. 

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


When you download a report, your information may be shared with the underwriters of that document.