I 
119TH CONGRESS 
1ST SESSION H. R. 3004 
To amend title 39, United States Code, to modernize the Postal Service 
regulations, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 24, 2025 
Mr. GRAVES introduced the following bill; which was referred to the 
Committee on Oversight and Government Reform 
A BILL 
To amend title 39, United States Code, to modernize the 
Postal Service regulations, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘USPS Services En-
hancement and Regulatory Viability Expansion and Sus-
tainability for the US Act’’ or the ‘‘USPS SERVES US 
Act’’. 
SEC. 2. COST AND EFFICIENCY REFORMS. 
(a) IN GENERAL.—Section 3622(d) of title 39, 
United States Code, is amended— 
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(1) in paragraph (1)(A), by striking ‘‘to be set 
by’’ and all that follows and inserting the following: 
‘‘equal to the amount that is the percentage change 
in the Consumer Price Index for All Urban Con-
sumers unadjusted for seasonal variation over the 
most recent available 12-month period preceding the 
date the Postal Service files notice of its intention 
to increase rates less— 
‘‘(i) 0.5 percent; or 
‘‘(ii) such other percentage as speci-
fied in an order by the Commission if such 
order describes the reasons of the Commis-
sion for selecting such other percentage 
and such order applies such other percent-
age with respect to only one such annual 
limitation;’’; and 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) REVISIONS.—In revising the system as 
permitted by subsection (a), the Postal Regulatory 
Commission shall make no change which would 
cause the revised system to be inconsistent with this 
section.’’. 
(b) REGULATIONS.—Not later than 60 days after the 
date of the enactment of this Act, the Postal Regulatory 
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Commission shall issue such regulations as are necessary 
to carry out section 3622(d)(1)(A) of title 39, United 
States Code, as amended by this section. 
SEC. 3. SANCTIONS FOR CERTAIN FAILURES OF SERVICE. 
(a) IN GENERAL.—Subchapter VII of chapter 36 of 
title 39, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 3693. Sanctions. 
‘‘(a) IN GENERAL.—If, pursuant to section 3653 or 
a complaint proceeding conducted pursuant to section 
3662, the Postal Regulatory Commission determines that 
the Postal Service failed to meet a target established 
under section 3692 and that such failure is a covered fail-
ure, the Commission may reduce the maximum amount 
by which the Postal Service may adjust the rates for the 
market-dominant products affected by such failure under 
section 3622, except that such reduction may not cause 
such maximum amount to be less than zero. In making 
such determination, the Commission shall consider evi-
dence of losses incurred by users of the product or prod-
ucts concerned as a result of the failure. 
‘‘(b) APPLICABILITY.— 
‘‘(1) IN
GENERAL.—A reduction under sub-
section (a) to the maximum amount by which the 
Postal Service may adjust the rates for a market- 
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dominant product under section 3622 shall apply 
only with respect to— 
‘‘(A) the first implementation of such an 
adjustment for such market-dominant product 
occurring during the period beginning on the 
date on which the Postal Regulatory Commis-
sion makes such reduction and ending on the 
date on which Commission determines that the 
Postal Service is meeting the target established 
under section 3692 with respect to which the 
Commission made such reduction; and 
‘‘(B) each subsequent implementation of 
such an adjustment for such market-dominant 
product occurring during such period to the ex-
tent determined appropriate by the Commis-
sion. 
‘‘(2) SUBSEQUENT
IMPLEMENTATION
DETER-
MINATION.—In making the determination described 
in paragraph (1)(B) with respect to a reduction for 
a failure described in subsection (a), the Postal Reg-
ulatory Commission shall consider evidence of losses 
incurred by users of each product affected by such 
failure. 
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‘‘(c) COVERED FAILURE DEFINED.—In this section, 
the term ‘covered failure’ means a failure to meet a target 
established under section 3692— 
‘‘(1) that is not the result of a natural disaster 
or another disruptive event the cause of which was 
outside the control of the Postal Service; 
‘‘(2) that has persisted for not less than one 
year; and 
‘‘(3) with respect to which the Postal Service 
does not have a credible plan for achieving and 
maintaining performance sufficient to meet the tar-
geted level within a reasonable time.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 36 of title 39, United States Code, is amended 
by inserting after the item relating to section 3692 the 
following: 
‘‘3693. Sanctions.’’. 
SEC. 4. IMPROVING CHANGE-IN-SERVICE PROCEDURES. 
Section 3661 of title 39, United States Code, is 
amended— 
(1) in subsection (b)— 
(A) by striking ‘‘When the’’ and insert 
‘‘(1) When the’’; 
(B) by striking ‘‘advisory opinion’’ and in-
serting ‘‘a decision’’; and 
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graph (1) with respect to a plan or initiative, 
the Postal Service shall justify the change in 
the nature of postal services implied by the plan 
or initiative and, to the extent necessary, justify 
the underlying plan or initiative in a hearing 
before the Commission. 
‘‘(ii) Each hearing under clause (i) 
shall be conducted in accordance with sec-
tions 556 and 556 of title 5. 
‘‘(3) Each decision of the Postal Regulatory 
Commission under this subsection shall be trans-
mitted to the Governors of the Postal Service. The 
Governors may accept the decision or, by unanimous 
written decision, reject the decision and adopt the 
original proposal of the Postal Service, in the case 
of a request by the Postal Service for a decision, or 
approve the plan or initiative found by the Commis-
sion to have required a decision under paragraph 
(2). The decision of the Governors shall be a final 
order for purposes of section 3663 of this title. If 
the Governors have not acted upon a Commission 
decision within 60 days of receiving it, the Commis-
sion decision will be deemed a final order for pur-
poses of section 3663 of this title.’’; and 
(2) in subsection (c)— 
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(A) by inserting ‘‘designated pursuant to 
section 505 of this title’’ after ‘‘officer of the 
Commission’’; and 
(B) by striking ‘‘his judgment’’ and insert-
ing ‘‘the judgment of such Commissioner’’. 
SEC. 5. ONE RATE INCREASE ANNUALLY. 
Section 3622(d)(1)(B) of title 39, United States 
Code, is amended by inserting after ‘‘amounts’’ the fol-
lowing: ‘‘, except that rates may not change more fre-
quently than once every 12 months’’. 
SEC. 6. LIMIT ON UNDERWATER SURCHARGES. 
Section 3622(d)(2) of title 39, United States Code, 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(D) USE OF RATE AUTHORITY FOR NON- 
COMPENSATORY CLASSES.— 
‘‘(i) 
LIMITATION.—Notwithstanding 
paragraph (1)(A), the Commission may au-
thorize the Postal Service to increase the 
rates for a non-compensatory class in ex-
cess of annual limitation under paragraph 
(1)(A) if— 
‘‘(I) the change in the attrib-
utable cost (as such term is defined in 
section 3631) per piece of mail for 
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such class does not exceed the annual 
limitation under paragraph (1)(A), as 
determined by the Commission using 
year-to-year comparable costing meth-
odologies; 
‘‘(II) in the immediately pre-
ceding fiscal year, the Postal Service 
has— 
‘‘(aa) pursuant to section 
3652 and without the use of any 
proxy data not approved by the 
Commission, directly measured 
and reported the compliance of 
the Postal Service with the tar-
gets established under section 
3692 for each product in such 
class for such fiscal year; and 
‘‘(bb) met each such target 
for such fiscal year; and 
‘‘(III) no target described in sub-
clause (II) for the immediately pre-
ceding fiscal year was reduced from 
the preceding fiscal year. 
‘‘(ii) NON-COMPENSATORY CLASS DE-
FINED.—In this subparagraph, the term 
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‘non-compensatory class’ means a class of 
mail for which the attributable costs (as 
defined in section 3631(b)) of the Postal 
Service exceed revenues of the Postal Serv-
ice attributable to such class of mail.’’. 
SEC. 7. CASE-SPECIFIC OBJECTIVES. 
Section 3622 of title 39, United States Code, is 
amended— 
(1) in subsection (b), in the matter preceding 
paragraph (1), by inserting ‘‘, and all of which shall 
be applied to each class or type of mail service and 
product’’ after ‘‘others’’; and 
(2) in subsection (c), in the matter preceding 
paragraph (1), by inserting after ‘‘such system,’’ the 
following: ‘‘or when evaluating whether a class or 
type of mail service or product complies with the ap-
plicable provisions of this chapter and the regula-
tions issues under such provisions,’’. 
SEC. 8. RETAINED EARNINGS FROM COST SAVINGS. 
Section 3622(b)(5) of title 39, United States Code, 
is amended by inserting after ‘‘retained earnings’’ the fol-
lowing: ‘‘resulting from improvements in efficiency or re-
ductions in cost only’’. 
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SEC. 9. OFFICE OF THE CUSTOMER ADVOCATE. 
(a) IN GENERAL.—Section 505 of title 39, United 
States Code, is amended to read as follows: 
‘‘§ 505. Office of the Customer Advocate 
‘‘(a) IN GENERAL.—The Postal Regulatory Commis-
sion shall establish in the Postal Regulatory Commission 
an Office of the Customer Advocate (in this section re-
ferred to as the ‘Office’). 
‘‘(b) REPRESENTATION.— 
‘‘(1) IN GENERAL.—The Office shall represent 
the interests of the general public in all public pro-
ceedings of the Commission, including the interests 
of customers of market-dominant products and 
classes. 
‘‘(2) RIGHTS AND LIMITS.— 
‘‘(A) IN GENERAL.—The Office— 
‘‘(i) shall have the same right as any 
interested person to lodge a complaint with 
or petition the Commission, or otherwise 
seek to have the Commission initiate a 
public proceeding, including rulemakings; 
and 
‘‘(ii) is subject to the same ex parte 
rules and limitations as any other litigant 
with respect to communication with the 
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Commission, Commissioners, and the advi-
sory staff of the Commission. 
‘‘(B) REPRESENT
CONFLICTING
INTER-
EST.— 
‘‘(i) IN
GENERAL.—The Office may 
represent conflicting interests of the gen-
eral public in a public proceeding of the 
Commission to the extent that the head of 
the Office determines necessary for the Of-
fice to effectively represent the interests of 
the general public in such proceeding. 
‘‘(ii) SEPARATE REPRESENTATIVES.— 
If the Office is representing conflicting in-
terests of the general public in a public 
proceeding of the Commission, the head of 
the Office shall ensure that such con-
flicting interests are represented by dif-
ferent individuals to the extent and in such 
manner as the head of the Office deter-
mines necessary for the Office to effec-
tively represent the interests of the general 
public in such proceeding. 
‘‘(3) OFFICE
AUTONOMY.—The Commission 
may not terminate or otherwise take adverse employ-
ment action against any employee of or individual 
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detailed to the Office based on the representation of 
the interests of the general public by such employee 
or detailee as an employee of or detailee to the Of-
fice, respectively, in a public proceeding of the Com-
mission, except for cause. 
‘‘(c) RESEARCH AUTHORITY.—The Office may— 
‘‘(1) conduct research and policy development 
for the purposes of representing the interests of the 
general public, including research and policy develop-
ment that is unrelated to a specific proceeding of the 
Commission; and 
‘‘(2) subject to the availability of funds, obtain 
the temporary or intermittent services of experts or 
consultants for such purposes. 
‘‘(d) OUTSIDE CONSULTATION.—The Office shall 
consult with outside persons and organizations the postal 
interests of which are relevant to the mission of the Office, 
including those persons and organizations that are actual 
or potential litigants before the Commission. 
‘‘(e) RATE AND CLASSIFICATION INQUIRY.—The Of-
fice shall inquire into the rates and classifications of com-
petitive products only to the extent necessary to evaluate 
compliance with sections 3622(b)(8) and 3622(b)(9) of 
this title, subchapter II of chapter 36 of this title, and 
the regulations issued under such subchapter. 
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‘‘(f) OFFICE STAFF.—The Commission shall ensure 
that, to the extent practicable, the Office has employees 
of a sufficient quantity and quality for the Office to effec-
tively carry out the responsibilities of the Office under this 
section, including by maximizing the duration of the detail 
of individuals detailed to the Office.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 5 of title 39, United States Code, is amended 
by striking the item relating to section 505 and inserting 
the following: 
‘‘505. Office of the Customer Advocate.’’. 
SEC. 10. COMPLAINT PROCESS IMPROVEMENT. 
Section 3662 of title 39, United States Code, is 
amended— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘The Postal’’ and 
inserting ‘‘With respect to a complaint 
received under subsection (a), the 
Postal’’; and 
(II) by striking ‘‘, within 90 days 
after receiving a complaint under sub-
section (a)’’; and 
(ii) in subparagraph (A)— 
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(I) by striking clause (i) and in-
serting the following: 
‘‘(i) begin proceedings on such com-
plaint— 
‘‘(I) immediately after the expira-
tion of the period described in para-
graph (3) if the Commission finds 
that such complaint raises material 
issues of fact or law and no motion 
described in clause (ii) with respect to 
such complaint is filed in such period; 
‘‘(II) immediately after the Com-
mission denies all motions described 
in clause (ii) with respect to such 
complaint that were filed during the 
period described in paragraph (3) if 
the Commission finds that such com-
plaint raises material issues of fact or 
law and all such motions are denied 
not later than 45 days after the date 
on which the Commission received 
such complaint under such subsection; 
or 
‘‘(III) not later than 45 days 
after the date on which the Commis-
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sion receives such complaint under 
such subsection if subclause (I) and 
(II) do not apply with respect to such 
complaint; or’’; and 
(II) in clause (ii)— 
(aa) 
by 
inserting 
before 
‘‘issue’’ the following: ‘‘if the 
Commission finds that, after con-
sideration of any motion assert-
ing that such complaint raises no 
material issues of law or fact, 
that such complaint raises no 
such issue, upon making such 
finding’’; and 
(bb) by inserting ‘‘within 45 
days after receiving such com-
plaint under such subsection’’ 
after ‘‘dismissing the complaint’’; 
and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) PROMPT MOTIONS.—A motion described in 
subparagraph (A)(ii) with respect to a complaint 
may only be filed during the 25-day period begin-
ning on date on which such complaint is filed, or 
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during such shorter period as the Postal Regulatory 
Commission may prescribed by regulation.’’; and 
(2) in subsection (c)— 
(A) by striking ‘‘or requiring’’ and insert-
ing ‘‘requiring’’; and 
(B) by inserting after ‘‘competitive prod-
ucts’’ the following: ‘‘or, upon a finding that 
the Postal Service has unreasonably delayed the 
proceeding, ordering reimbursement consistent 
with section 3681’’. 
SEC. 11. REIMBURSEMENT OF UNLAWFUL RATES; PENALTY 
FOR UNREASONABLE DELAY. 
Section 3681 of title 39, United States Code, is 
amended— 
(1) by striking ‘‘No mailer’’ and inserting ‘‘(a) 
No mailer’’; 
(2) by striking ‘‘through 3664 of this title, or 
is superseded by a lower rate or fee established 
under subchapter II of this chapter’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b)(1)(A) If the Postal Regulatory Commissions de-
termines that a rate or fee for a product is unlawful in 
a review conducted pursuant to section 3653 of this title 
or in a complaint proceeding conducted pursuant to sec-
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tion 3662 of this title, the Commission shall order the 
price increase authority for such product and all other 
products in the class of mail containing such product to 
be reduced (but not below zero) for the next following 
price adjustment and each succeeding price adjustments 
until the amount of foregone revenue is equal to amount 
of revenue received by the Postal Service from the portion 
of such rate or fee that exceeded the lawful amount such 
rate or fee. 
‘‘(B) In this paragraph, the term ‘foregone rev-
enue’ means the difference between— 
‘‘(i) the revenue that the Postal Service 
would have received from the sale of the prod-
ucts subject to an order under subparagraph 
(A) during the period that the Postal Service is 
unable to increase the prices of such products 
pursuant to such order if— 
‘‘(I) the Commission had not issued 
such order; and 
‘‘(II) the rate or fee for the product 
with the unlawful rate or fee for which the 
Commission issued such order was the 
maximum lawful rate or fee for such prod-
uct at the time the Commission issued 
such order; and 
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‘‘(ii) the revenue the Postal Service re-
ceives from the sale of the products subject to 
such order during such period. 
‘‘(2)(A) In a complaint proceeding conducted pursu-
ant to section 3662 of this title, if the Postal Regulatory 
Commission finds that the Postal Service has unreason-
ably delayed the proceeding, the Commission may order 
a reduction in the price increase authority for the product 
or products whose rate or fee it has determined to be un-
lawful to the extent that the unreasonable delay caused 
by the Postal Service has extended the time during which 
users of such product or products have paid the unlawful 
rate or fee. 
‘‘(B) A reduction under subparagraph (A) shall 
be in addition to any reduction under paragraph (1). 
‘‘(C) The Commission shall include in an order 
under subparagraph (A) with respect to the unrea-
sonably delay of a proceeding an explanation of the 
basis for the determination of the Commission re-
garding the time such proceeding would have re-
quired absent such unreasonable delay.’’. 
SEC. 12. MAIL VOLUME SYSTEM OBJECTIVE. 
Section 3622(b) of title 39, United States Code, is 
amended— 
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(1) by redesignating paragraph (9) as para-
graph (10); and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) To maintain and, to the extent practicable, 
increase the volume of market-dominant mail, with 
due regard to total contribution to the institutional 
costs of the Postal Service.’’. 
SEC. 13. NEW PRODUCT DEFINITION CRITERIA. 
Section 3642(b)(3) of title 39, United States Code, 
is amended— 
(1) in subparagraph (B), by striking ‘‘and’’; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) the importance of paragraphs (7), 
(8), and (11) of section 3622(c) of this title in 
the appropriate definition of market-dominant 
products.’’. 
SEC. 14. MAIL VOLUME ESTIMATION MODEL. 
(a) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act, the Postal Regulatory 
Commission shall develop a model for estimating the de-
mand for postal services. 
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(b) INDEPENDENT DEVELOPMENT.—The Commis-
sion may not consider any models for estimating demand 
developed by the Postal Service when developing the model 
required under this section. 
(c) PUBLIC COMMENT.—In developing the model re-
quired under this section, the Postal Regulatory Commis-
sion shall solicit and provide adequate opportunity for 
public comment regarding the model. 
(d) REGULATIONS.—The Postal Regulatory Commis-
sion may issue such regulations, after notice and comment 
in accordance with section 553 of title 5, United States 
Code, as the Commission determines necessary to develop 
the model required under this section. 
(e) EXPERT ADVISORS.—The Commission may ob-
tain the temporary or intermittent services of experts or 
consultants to facilitate the development of the model re-
quired under this section. 
SEC. 15. INVESTMENT OF THE POSTAL SERVICE RETIREE 
HEALTH BENEFITS FUNDS. 
Section 8909a(c) of title 5, United States Code, is 
amended— 
(1) by striking ‘‘(c) The Secretary’’ and insert-
ing ‘‘(c)(1) Subject to paragraph (2), the Sec-
retary’’; and 
(2) by adding at the end the following: 
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‘‘(2)(A) The Secretary of the Treasury shall im-
mediately invest a specified percentage of the Fund, 
using one or more qualified professional asset man-
agers, in index funds modeled after those established 
under subparagraphs (B), (C), (D), and (E) of sec-
tion 8438(b)(1). The Secretary shall ensure, to the 
maximum extent practicable, that the investment 
replicates the performance of the longest-term target 
date asset allocation investment fund established by 
the Federal Retirement Thrift Investment Board. 
‘‘(B) In exercising authority under sub-
paragraph (A), including in the selection of spe-
cific qualified professional asset managers and 
in the development of specific investment guide-
lines to meet the requirement of such subpara-
graph, the Secretary shall consult with the 
Postal Service Retiree Health Benefits Fund 
Investment Committee. 
‘‘(C)(i) There is established a Postal Serv-
ice Retiree Health Benefits Fund Investment 
Committee that shall consist of— 
‘‘(I) the Secretary; 
‘‘(II) the Chair of the Board of 
Governors of the United States Postal 
Service; 
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‘‘(III) the Chairman of the Fed-
eral Retirement Thrift Investment 
Board; and 
‘‘(IV) two members, appointed by 
the President, who— 
‘‘(aa) shall represent the in-
terests of Postal Service employ-
ees and annuitants; 
‘‘(bb) have experience and 
expertise in the management of 
financial investments and Postal 
Service employee benefits; and 
‘‘(cc) shall serve for a term 
of 3 years. 
‘‘(ii) Subsections (b)(1) and (c)(2) of 
section 8477 shall apply with respect to 
the Postal Service Retiree Health Benefits 
Fund Investment Committee and each 
member of the Postal Service Retiree 
Health Benefits Fund Investment Com-
mittee in the same manner as such sub-
sections apply to a fiduciary with respect 
to the Thrift Savings Fund. 
‘‘(D)(i) The Secretary shall annually en-
gage an independent qualified public accountant 
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(as defined in section 8439) to audit and pro-
vide a report on the financial statements of the 
investments made pursuant to subparagraph 
(A). 
‘‘(ii) Not later than 180 days after 
the end of each fiscal year beginning after 
the date of the enactment of this para-
graph, the Secretary shall submit to Con-
gress an annual management report re-
garding the Fund that includes— 
‘‘(I) a statement of financial po-
sition; 
‘‘(II) a statement of operations; 
‘‘(III) a statement of cash flows; 
‘‘(IV) a statement on internal ac-
counting and administrative control 
systems; 
‘‘(V) the most recent report re-
sulting from an audit of the financial 
statements of the investments con-
ducted under clause (i); and 
‘‘(VI) any other comments and 
information the Secretary determines 
necessary to inform the Congress 
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about the operations and financial 
condition of the investments. 
‘‘(E) In this paragraph— 
‘‘(i) the term ‘specified percentage’ 
means 25 percent of the currently available 
portions of the Fund as are not imme-
diately required for payments from the 
Fund, except that the Postal Service Re-
tiree Health Benefits Fund Investment 
Committee may specify a higher percent-
age, not to exceed 30 percent, not earlier 
than 5 years after the date of enactment 
of the Postal Service Financial Improve-
ment Act of 2019, and as appropriate 
thereafter; and 
‘‘(ii) the term ‘qualified professional 
asset manager’ has the meaning given that 
term in section 8438(a).’’. 
Æ 
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