IB 
Union Calendar No. 171 
117TH CONGRESS 
2D SESSION 
H. R. 3076 
[Report No. 117–89, Parts I and II] 
To provide stability to and enhance the services of the United States Postal 
Service, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2021 
Mrs. CAROLYN B. MALONEY of New York (for herself, Mr. CONNOLLY, Ms. 
FOXX, and Mr. COMER) introduced the following bill; which was referred 
to the Committee on Oversight and Reform, and in addition to the Com-
mittees on Energy and Commerce, and Ways and Means, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
JULY 16, 2021 
Reported from the Committee on Oversight and Reform with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 16, 2021 
Referral to the Committees on Energy and Commerce and Ways and Means 
extended for a period ending not later than September 30, 2021 
SEPTEMBER 30, 2021 
Referral to the Committees on Energy and Commerce and Ways and Means 
extended for a period ending not later than November 8, 2021 
NOVEMBER 4, 2021 
Referral to the Committees on Energy and Commerce and Ways and Means 
extended for a period ending not later than November 18, 2021 
NOVEMBER 18, 2021 
Referral to the Committees on Energy and Commerce and Ways and Means 
extended for a period ending not later than December 3, 2021 
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DECEMBER 3, 2021 
Referral to the Committees on Energy and Commerce and Ways and Means 
extended for a period ending not later than January 21, 2022 
JANUARY 21, 2022 
Referral to the Committees on Energy and Commerce and Ways and Means 
extended for a period ending not later than March 18, 2022 
FEBRUARY 1, 2022 
Additional sponsors: Mr. LYNCH, Mrs. LAWRENCE, Mr. HUFFMAN, Mr. 
THOMPSON of California, Mr. YOUNG, Ms. TENNEY, Mrs. NAPOLITANO, 
Ms. MALLIOTAKIS, Mr. KAHELE, Ms. STEFANIK, Mr. LARSEN of Wash-
ington, Mr. GARBARINO, Mr. SOTO, Mr. LATURNER, Mr. CASE, Mr. 
GROTHMAN, Mr. HARDER of California, Ms. MACE, Mr. SUOZZI, Mr. 
BACON, Mr. HORSFORD, Mr. VALADAO, Mr. NADLER, Mr. MAST, Mr. 
ESPAILLAT, Mr. RESCHENTHALER, Mr. KILDEE, Mr. BOST, Mr. 
KHANNA, Mr. SMITH of New Jersey, Ms. TITUS, Mr. GIBBS, Ms. KAP-
TUR, Mr. VAN DREW, Ms. MANNING, Mr. RODNEY DAVIS of Illinois, Mr. 
HIGGINS of New York, Mr. SIMPSON, Mr. COHEN, Mr. GONZALEZ of 
Ohio, Mr. CROW, Mr. KATKO, Mr. FOSTER, Ms. STRICKLAND, Ms. ROY-
BAL-ALLARD, Ms. DELAURO, Mr. GALLEGO, Mr. COOPER, Ms. SCHA-
KOWSKY, Ms. OCASIO-CORTEZ, Ms. MENG, Mr. FITZPATRICK, Ms. CRAIG, 
Mrs. HAYES, Ms. WATERS, Mrs. DINGELL, Mr. GOTTHEIMER, Mr. 
OWENS, Mr. BURGESS, Mr. NEGUSE, Mr. JOYCE of Ohio, Mr. MORELLE, 
Ms. SHERRILL, Mr. MCCAUL, Mr. GARCI´A of Illinois, Mr. SIRES, Mr. 
GARCIA of California, Mr. JONES, Ms. GRANGER, Ms. NEWMAN, Mr. 
ARMSTRONG, Ms. BASS, Mr. KINZINGER, Ms. WILD, Mr. HUDSON, Ms. 
PORTER, Mr. SESSIONS, Mr. BUTTERFIELD, Mr. FORTENBERRY, Mr. 
NORCROSS, Mr. ROGERS
of Alabama, Mr. KRISHNAMOORTHI, Mr. 
ROUZER, Mr. RUPPERSBERGER, Mr. CAWTHORN, Ms. LOFGREN, Mr. 
GRAVES of Missouri, Mr. LOWENTHAL, Mr. UPTON, Mr. LAWSON of 
Florida, Mr. BUCSHON, Mr. SCHNEIDER, Mr. TONY GONZALES of Texas, 
Mrs. AXNE, Mrs. KIM of California, Mr. MURPHY of North Carolina, Mr. 
COURTNEY, Ms. ESHOO, and Mrs. SPARTZ 
FEBRUARY 1, 2022 
Committees on Energy and Commerce and Ways and Means discharged; com-
mitted to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on May 11, 2021] 
A BILL 
To provide stability to and enhance the services of the United 
States Postal Service, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Postal Service Reform Act of 2021’’. 
(b) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—POSTAL SERVICE FINANCIAL REFORMS 
Sec. 101. Postal Service Health Benefits Program. 
Sec. 102. USPS Fairness Act. 
Sec. 103. Nonpostal services. 
TITLE II—POSTAL SERVICE OPERATIONAL REFORMS 
Sec. 201. Performance targets and transparency. 
Sec. 202. Integrated delivery network. 
Sec. 203. Review of Postal Service cost attribution guidelines. 
Sec. 204. Rural newspaper sustainability. 
Sec. 205. Funding of Postal Regulatory Commission. 
Sec. 206. Flats operations study and reform. 
Sec. 207. Reporting requirements. 
Sec. 208. Postal Service transportation selection policy revisions. 
Sec. 209. USPS Inspector General oversight of Postal Regulatory Commission. 
TITLE I—POSTAL SERVICE 
FINANCIAL REFORMS 
SEC. 101. POSTAL SERVICE HEALTH BENEFITS PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Chapter 89 of title 5, United 
States Code, is amended by inserting after section 
8903b the following: 
‘‘§ 8903c. Postal Service Health Benefits Program 
‘‘(a) DEFINITIONS.—In this section— 
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‘‘(1) the term ‘covered Medicare individual’ 
means an individual who is entitled to benefits under 
Medicare part A, but excluding an individual who is 
eligible to enroll under such part under section 1818 
or 1818A of the Social Security Act (42 U.S.C. 
1395i–2, 1395i–2a); 
‘‘(2) the term ‘initial contract year’ means the 
contract year beginning in January of 2023; 
‘‘(3) the term ‘initial participating carrier’ 
means a carrier that enters into a contract with the 
Office to participate in the Postal Service Health 
Benefits Program during the initial contract year; 
‘‘(4) the term ‘Medicare part A’ means part A of 
title XVIII of the Social Security Act (42 U.S.C. 
1395c et seq.); 
‘‘(5) the term ‘Medicare part B’ means part B 
of title XVIII of the Social Security Act (42 U.S.C. 
1395j et seq.); 
‘‘(6) the term ‘Office’ means the Office of Per-
sonnel Management; 
‘‘(7) the term ‘Postal Service’ means the United 
States Postal Service; 
‘‘(8) the term ‘Postal Service annuitant’ means 
an annuitant enrolled in a health benefits plan under 
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‘‘(c) ESTABLISHMENT
OF
THE
POSTAL
SERVICE 
HEALTH BENEFITS PROGRAM.— 
‘‘(1) IN GENERAL.—The Office shall establish the 
Postal Service Health Benefits Program under which 
the Office contracts with carriers to offer health bene-
fits plans as described under this section. Except as 
otherwise provided in this section, any such contract 
shall be consistent with the requirements of this chap-
ter for contracts under section 8902 with carriers to 
offer health benefits plans other than under this sec-
tion. The Program shall— 
‘‘(A) to the greatest extent practicable, in-
clude plans offered by— 
‘‘(i) each carrier for which the total en-
rollment in the plans provided under this 
chapter includes, in the contract year begin-
ning in January 2022, 1,500 or more en-
rollees who are Postal Service employees or 
Postal Service annuitants; and 
‘‘(ii) any other carrier determined ap-
propriate by the Office; 
‘‘(B) be available for participation by Post-
al Service employees and Postal Service annu-
itants, in accordance with subsection (d); 
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‘‘(C) provide for enrollment in a plan as an 
individual, for self plus one, or for self and fam-
ily; and 
‘‘(D) not be available for participation by 
an individual who is not a Postal Service em-
ployee or Postal Service annuitant (except as a 
member of family of such an employee or annu-
itant or as provided under paragraph (5)). 
‘‘(2) SEPARATE POSTAL SERVICE RISK POOL.— 
The Office shall ensure that each Program plan in-
cludes rates that reasonably and equitably reflect the 
cost of benefits provided to a risk pool consisting sole-
ly of Postal Service employees, Postal Service annu-
itants, and covered members of family of such em-
ployees and annuitants (regardless of the health plan, 
coverage, or benefit program in which such an em-
ployee, annuitant, or member of family is enrolled), 
taking into specific account the change in benefits cost 
for the Program plan due to the Medicare enrollment 
requirements under subsection (e) and any savings or 
subsidies resulting from subsection (f). 
‘‘(3) ACTUARIALLY
EQUIVALENT
COVERAGE.— 
The Office shall ensure that each carrier participating 
in the Postal Service Health Benefits Program pro-
vides coverage under the Program plans offered by the 
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carrier that is actuarially equivalent, as determined 
by the Office, to the coverage that the carrier provides 
under the health benefits plans offered by the carrier 
under this chapter that are not Program plans. 
‘‘(4) APPLICABILITY
OF
FEDERAL
EMPLOYEES 
HEALTH
BENEFITS
PROGRAM
REQUIREMENTS.—Ex-
cept as otherwise set forth in this section, all provi-
sions of this chapter applicable to health benefits 
plans offered by carriers under section 8903 or 8903a 
shall apply to plans offered under the Program. 
‘‘(5) 
APPLICATION
OF
CONTINUATION
COV-
ERAGE.—In accordance with rules established by the 
Office, section 8905a shall apply to health benefits 
plans offered under this section in the same manner 
as such section applies to other health benefits plans 
offered under this chapter. 
‘‘(d) ELECTION OF COVERAGE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), each Postal Service employee and Postal 
Service annuitant who elects to receive health benefits 
coverage under this chapter— 
‘‘(A) shall be subject to the requirements of 
this section; and 
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‘‘(B) may not enroll in any other health 
benefits plan offered under any other section of 
this chapter. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) LACK OF GEOGRAPHIC COVERAGE.— 
An individual who is a Postal Service employee 
or Postal Service annuitant may enroll in a 
health benefits plan offered under any other sec-
tion of this chapter if the individual resides in 
a geographic area for which there is not a Pro-
gram plan in which the individual may enroll. 
‘‘(B) ANNUITANTS AS OF PROGRAM INCEP-
TION.— 
‘‘(i) CURRENT MEDICARE COVERED AN-
NUITANTS.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), in the case of an indi-
vidual who, as of January 1, 2023, is 
a Postal Service Medicare covered an-
nuitant who has not enrolled in both 
Medicare part A and Medicare part B, 
such individual may enroll in a health 
benefits plan offered under any other 
section of this chapter, and may not 
enroll in a Program plan. 
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‘‘(II) PROGRAM
PLAN
ENROLL-
MENT FOLLOWING MEDICARE PARTS A 
AND B ENROLLMENT.—In the case of 
an individual described in subclause 
(I) who subsequent to January 1, 2023, 
is enrolled in both Medicare part A 
and Medicare part B, beginning with 
the first contract year beginning after 
the date such individual is enrolled in 
both Medicare part A and Medicare 
part B, subclause (I) shall no longer 
apply to such individual and such in-
dividual may receive health benefits 
under this chapter only through a Pro-
gram plan. 
‘‘(ii) PRE-MEDICARE ANNUITANTS.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), an individual who, as 
of January 1, 2023, is a Postal Service 
annuitant and is not a Postal Service 
Medicare annuitant (for a reason other 
than eligibility to enroll in Medicare 
part A under section 1818 or 1818A of 
the Social Security Act) may enroll in 
either a Program plan or in a health 
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benefits plan offered under any other 
section of this chapter. 
‘‘(II) EXCEPTION.—In the case of 
an individual described in subclause 
(I) who enrolls in a Program plan for 
any contract year beginning on or 
after the date on which the individual 
becomes a Postal Service Medicare cov-
ered annuitant, beginning with such 
contract year, subclause (I) shall no 
longer apply to the individual and the 
individual may receive health benefits 
under this chapter only through enroll-
ment in a Program plan. 
‘‘(C) CERTAIN EMPLOYEES AS OF PROGRAM 
INCEPTION.— 
‘‘(i) LEGACY
COVERAGE.—A Postal 
Service employee who is enrolled in a health 
benefits plan under this chapter for the con-
tract year immediately preceding the initial 
contract year that is not a health benefits 
plan offered by an initial participating car-
rier may enroll in either a Program plan or 
in a health benefits plan offered under any 
other section of this chapter, except that— 
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‘‘(I) if the Postal Service employee 
changes enrollment to a different health 
benefits plan under this chapter during 
the open season for the initial contract 
year, or after the start of the initial 
contract year, the Postal Service em-
ployee may only enroll in a Program 
plan; 
‘‘(II) if the health benefits plan in 
which such employee is enrolled for 
such contract year becomes available as 
a Program plan, the Postal Service 
employee may only enroll in a Pro-
gram plan; and 
‘‘(III) upon becoming a Postal 
Service annuitant, if the Postal Service 
employee elects to continue coverage 
under this chapter, the Postal Service 
employee shall enroll in a Program 
plan during the open season that is— 
‘‘(aa) being held when the 
Postal Service employee becomes a 
Postal Service annuitant; or 
‘‘(bb) if the date on which the 
Postal Service employee becomes a 
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Postal Service annuitant falls out-
side of an open season, the first 
open season following that date. 
‘‘(ii) CURRENT
EMPLOYEES
AGED
AND OVER.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), an individual who, as 
of January 1, 2023, is a Postal Service 
employee and is at least 64 years of 
age may enroll in either a Program 
plan or in a health benefits plan of-
fered under any other section of this 
chapter. 
‘‘(II) EXCEPTION.—In the case of 
an individual described in subclause 
(I) who enrolls in a Program plan for 
any contract year beginning on or 
after the date on which the individual 
becomes a Postal Service Medicare cov-
ered annuitant, beginning with such 
contract year, subclause (I) shall no 
longer apply to the individual and the 
individual may receive health benefits 
under this chapter only through enroll-
ment in a Program plan. 
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‘‘(D) CERTAIN OTHER ANNUITANTS.— 
‘‘(i) ANNUITANTS
AND
FAMILY
MEM-
BERS
EXCLUDED
FROM
PREMIUM-FREE 
MEDICARE PART A.— 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), a Postal Service annu-
itant who is eligible to enroll in Medi-
care Part A under section 1818 or 
1818A of the Social Security Act may 
enroll in either a Program plan or in 
a health benefits plan offered under 
any other section of this chapter if the 
annuitant— 
‘‘(aa) is eligible to enroll in 
Medicare part A under section 
1818 or 1818A of the Social Secu-
rity Act; or 
‘‘(bb) includes in the annu-
itant’s plan enrollment one or 
more family members who are eli-
gible to enroll in Medicare part A 
under section 1818 or 1818A of 
such Act. 
‘‘(II) EXCEPTION.—In the case of 
an annuitant described in subclause 
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(I) who enrolls in a Program plan for 
any contract year beginning on or 
after the date on which the annuitant 
or any member of family covered by 
the enrollment becomes eligible to enroll 
in Medicare part A, beginning with 
such contract year, subclause (I) shall 
no longer apply to the annuitant and 
the annuitant may receive health bene-
fits under this chapter only through 
enrollment in a Program plan. 
‘‘(ii) LIMITED
OR
REDUNDANT
COV-
ERAGE.—An individual who is a Postal 
Service annuitant may enroll either in a 
Program plan (subject to subsection (e) of 
this section and to sections 226(j) and 
1837(o)(2) of the Social Security Act) or in 
a health benefits plan offered under any 
other section of this chapter for any con-
tract year in which the annuitant or mem-
ber of family covered by the enrollment, re-
spectively, is a covered Medicare individual 
and— 
‘‘(I) the annuitant or family 
member, respectively, resides in an 
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area where the Office has determined 
that no Medicare providers are avail-
able; 
‘‘(II) the annuitant receives com-
prehensive medical coverage provided 
by the Department of Veterans Affairs 
under subchapter II of chapter 17 of 
title 38, United States Code; or 
‘‘(III) the annuitant receives com-
prehensive medical coverage provided 
by the Indian Health Service under the 
Indian Health Care Improvement Act 
(25 U.S.C. 1601 et seq.). 
‘‘(iii) REGULATIONS.—Not later than 
90 days after the date of enactment of this 
section, the Office shall, in consultation 
with the Secretary of Health and Human 
Services, the Secretary of Veterans Affairs, 
and the Postmaster General, promulgate 
any regulations necessary to implement this 
subparagraph. 
‘‘(e) REQUIREMENT OF MEDICARE ENROLLMENT FOR 
CERTAIN ANNUITANTS AND THEIR FAMILY MEMBERS.— 
‘‘(1) ANNUITANTS.—Except as provided under 
subsection (d)(2), a Postal Service Medicare covered 
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annuitant may not enroll under a Program plan un-
less the annuitant is enrolled in both Medicare part 
A and Medicare part B. 
‘‘(2) MEDICARE COVERED FAMILY MEMBERS.—In 
the case of a Postal Service annuitant who is required 
under this subsection to enroll in Medicare part A 
and Medicare part B to enroll under the Program, if 
a member of family of such Postal Service annuitant 
is a covered Medicare individual or is eligible to en-
roll in Medicare Part A under section 1818 or 1818A 
of the Social Security Act, that member of family 
may not enroll under the Program as a member of 
family of the Postal Service annuitant unless that 
member of family is enrolled in both Medicare part 
A and Medicare part B. 
‘‘(3) PROCESS FOR COORDINATED ELECTION OF 
MEDICARE ENROLLMENT.—The Office shall establish a 
process under which— 
‘‘(A) Postal Service annuitants and mem-
bers of family who are subject to the require-
ments of paragraph (1) or (2)— 
‘‘(i) are informed, prior to enrollment 
under this section, of such requirement; and 
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Medicare part A pursuant to section 1818 or 1818A 
of the Social Security Act) pursuant to the same co-
ordination of benefits method used in connection with 
plans offered under any other section of this chapter. 
‘‘(2) MEDICARE
PART
D
PRESCRIPTION
DRUG 
BENEFITS.—The Office shall require each Program 
plan to provide prescription drug benefits to any 
Postal Service annuitant and member of family of 
such annuitant who is a part D eligible individual 
(as defined in section 1860D–1(a)(3)(A) of the Social 
Security Act) through employment-based retiree 
health coverage (as defined in section 1860D–22(c)(1) 
of such Act) through a prescription drug plan (as de-
fined in section 1860D–41(a)(14) of such Act). 
‘‘(g) POSTAL SERVICE CONTRIBUTION.— 
‘‘(1) IN GENERAL.—Subject to subsection (i), for 
purposes of applying section 8906(b) to the Postal 
Service, the weighted average shall be calculated in 
accordance with paragraphs (2) and (3). 
‘‘(2) WEIGHTED
AVERAGE
CALCULATION.—Not 
later than October 1 of each year (beginning with 
2022), the Office shall determine the weighted average 
of the rates established pursuant to subsection (c)(2) 
for Program plans that will be in effect during the 
following contract year with respect to— 
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‘‘(A) enrollments for self only; 
‘‘(B) enrollments for self plus one; and 
‘‘(C) enrollments for self and family. 
‘‘(3) WEIGHTING IN COMPUTING RATES FOR INI-
TIAL CONTRACT YEAR.—In determining such weighted 
average of the rates for the initial contract year, the 
Office shall take into account (for purposes of section 
8906(a)(2)) the enrollment of Postal Service employ-
ees and annuitants in the health benefits plans offered 
by the initial participating carriers as of March 31, 
2022. 
‘‘(h) RESERVES.— 
‘‘(1) SEPARATE RESERVES.— 
‘‘(A) IN GENERAL.—The Office shall ensure 
that each Program plan maintains separate re-
serves (including a separate contingency reserve) 
with respect to the enrollees in the Program plan 
in accordance with section 8909. All provisions 
of section 8909 relating to contingency reserves 
shall apply to contingency reserves of Program 
plans in the same manner as to those of other 
plans under this chapter, except to the extent 
that such provisions are inconsistent with the re-
quirements of this subsection. 
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‘‘(B) REFERENCES.—For purposes of the 
Program, each reference to ‘the Government’ in 
section 8909 shall be deemed to be a reference to 
the Postal Service. 
‘‘(C) AMOUNTS TO BE CREDITED.—The re-
serves (including the separate contingency re-
serve) maintained by each Program plan shall be 
credited with a proportionate amount of the 
funds in the reserves for health benefits plans of-
fered by the carrier. 
‘‘(2) DISCONTINUATION OF PROGRAM PLAN.—In 
applying section 8909(e) relating to a Program plan 
that is discontinued, the Office shall credit the sepa-
rate Postal Service contingency reserve maintained 
under paragraph (1) for that plan only to the sepa-
rate Postal Service contingency reserves of the Pro-
gram plans continuing under this chapter. 
‘‘(i) NO EFFECT ON EXISTING LAW.—Nothing in this 
section shall be construed as affecting section 1005(f) of title 
39 regarding variations, additions, or substitutions to the 
provisions of this chapter. 
‘‘(j) HEALTH BENEFITS EDUCATION PROGRAM.— 
‘‘(1) Not later than 180 days after the date of en-
actment of this section, the Postal Service shall estab-
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lish a Health Benefits Education Program. Under the 
Program, the Postal Service shall— 
‘‘(A) notify annuitants and employees of the 
Postal Service about the Postal Service Health 
Benefits Program established under subsection 
(c)(1); 
‘‘(B) provide information regarding the 
Postal Service Health Benefits Program to such 
annuitants and employees, including a descrip-
tion of the health care options available under 
such Program, the enrollment provisions of sub-
section (d), and the requirement that annuitants 
and their family members be enrolled in Medi-
care under subsection (e); and 
‘‘(C) in coordination with the Centers for 
Medicare & Medicaid Services and the Commis-
sioner of Social Security, respond and provide 
answers to any inquiry from such employees and 
annuitants about the Postal Service Health Ben-
efits Program or Medicare enrollment. 
‘‘(2) The Office shall timely provide the Postal 
Service with such information as the Postal Service 
determines to be necessary to conduct the Medicare 
Education Program.’’. 
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(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) Section 8903(1) of title 5, United States 
Code, is amended by striking ‘‘two levels of bene-
fits’’ and inserting ‘‘2 levels of benefits for enroll-
ees under this chapter generally and 2 levels of 
benefits for enrollees under the Postal Service 
Health Benefits Program established under sec-
tion 8903c’’. 
(B) The table of sections for chapter 89 of 
title 5, United States Code, is amended by in-
serting after the item relating to section 8903b 
the following: 
‘‘8903c. Postal Service Health Benefits Program.’’. 
(b) COORDINATION WITH MEDICARE.— 
(1) MEDICARE PART A.—Section 226 of the So-
cial Security Act (42 U.S.C. 426) is amended by add-
ing at the end the following new subsection: 
‘‘(j)(1) In the case of an individual who— 
‘‘(A) on or after January 1, 2023, is— 
‘‘(i) a Postal Service employee; 
‘‘(ii) a Postal Service annuitant who is 
not a Postal Service Medicare covered an-
nuitant; or 
‘‘(iii) a member of family of a Postal 
Service employee or of a Postal Service an-
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nuitant and who is not described in section 
1837(o)(1) of this Act; and 
‘‘(B) enrolls in a Program plan under sec-
tion 8903c of title 5, United States Code, 
such individual is deemed to be enrolled under this 
part, regardless of whether such individual has filed 
an application under subparagraph (A) or (C) of sub-
section (a)(2). 
‘‘(2) Entitlement to hospital benefits under part 
A by reason of paragraph (1) begins as of— 
‘‘(A) in the case of an individual who is a 
Postal Service employee or a Postal Service an-
nuitant who is eligible to become a Postal Serv-
ice Medicare covered annuitant, the date on 
which the individual becomes a Postal Service 
Medicare covered annuitant or the date of enroll-
ment in a Program plan, whichever is later; 
‘‘(B) in the case of an individual who is eli-
gible to enroll under section 1818 or 1818A, the 
date on which the individual attains such eligi-
bility or the date of enrollment in a Program 
plan whichever is later; and 
‘‘(C) in the case of an individual who is de-
scribed in paragraph (1)(A)(iii) and is eligible 
to become a covered Medicare individual, as of 
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the first date the individual becomes a covered 
Medicare individual or the date of enrollment in 
a Program plan, whichever is later. 
‘‘(3) The definitions in section 8903c(a) of title 
5, United States Code, shall apply for purposes of this 
subsection. 
‘‘(4) Nothing in this subsection shall be construed 
to deprive any individual of any other method or pe-
riod of enrollment to which such individual is entitled 
under this section.’’. 
(2) MEDICARE PART B.— 
(A) ENROLLMENT.—Section 1837 of the So-
cial Security Act (42 U.S.C. 1395p) is amended 
by adding at the end the following new sub-
section: 
‘‘(o)(1) In the case of an individual who— 
‘‘(A) as of January 1, 2023, is— 
‘‘(i) a Postal Service Medicare covered 
annuitant; or 
‘‘(ii) a member of family of a Postal 
Service employee or of a Postal Service an-
nuitant and is a covered Medicare indi-
vidual; 
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between such a Program plan and such a prescription 
drug plan’’. 
(4) WAIVER OF INCREASE OF MEDICARE PART B 
PREMIUM.—Section 1839(b) of the Social Security 
Act (42 U.S.C. 1395r(b)) is amended by inserting 
after ‘‘subsection (i)(4) or (l) of section 1837’’ the fol-
lowing: ‘‘or pursuant to the special enrollment period 
under subsection (o)(1) of such section’’. 
SEC. 102. USPS FAIRNESS ACT. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘USPS Fairness Act’’. 
(b) RATIONAL BENEFITS FUNDING
AND ACCOUNT-
ING.— 
(1) IN
GENERAL.—Section 8909a of title 5, 
United States Code, is amended by striking subsection 
(d) and inserting the following: 
‘‘(d)(1) Not later than June 30, 2024, and by June 
30 of each succeeding year, the Office shall compute, for the 
most recently concluded fiscal year, the difference between— 
‘‘(A) any Government contributions re-
quired to be paid from the Fund under section 
8906(g)(2)(A); and 
‘‘(B) the net claims costs under the enroll-
ment of the individuals described in section 
8906(g)(2)(A). 
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‘‘(2) Not later than September 30 of each year in 
which the Office makes a computation under para-
graph (1), the United States Postal Service shall pay 
into the Fund the difference computed in such para-
graph. 
‘‘(e) Any computation of the liability of the Fund re-
quired by law shall be based on— 
‘‘(1) the net present value of the future net 
claims costs with respect to— 
‘‘(A) current annuitants of the United 
States Postal Service as of the end of the fiscal 
year ending on September 30 of the relevant re-
porting year; and 
‘‘(B) current employees of the United States 
Postal Service who would, as of September 30 of 
that year,— 
‘‘(i) be eligible to become annuitants 
pursuant to section 8901(3)(A); and 
‘‘(ii) if they were retired as of that 
date, meet the criteria for coverage of annu-
itants under section 8905(b); 
‘‘(2) economic and actuarial methods and as-
sumptions consistent with the methods and assump-
tions used in determining the Postal surplus or sup-
plemental liability under section 8348(h); and 
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‘‘(3) any other methods and assumptions, includ-
ing a health care cost trend rate, that the Director of 
the Office determines to be appropriate. 
‘‘(f) After consultation with the United States Postal 
Service, the Office shall promulgate any regulations the Of-
fice determines necessary under this subsection. 
‘‘(g) For purposes of this section, the term ‘net claims 
costs’ shall mean the difference between— 
‘‘(1) the sum of— 
‘‘(A) the costs incurred by a carrier in pro-
viding health services to, paying for health serv-
ices provided to, or reimbursing expenses for 
health services provided to, annuitants of the 
United States Postal Service and any other per-
sons covered under the enrollment of such annu-
itants; and 
‘‘(B) an amount of indirect expenses reason-
ably allocable to the provision, payment, or re-
imbursement described in subparagraph (A), as 
determined by the Office; and 
‘‘(2) the amount withheld from the annuity of or 
paid by annuitants of the United States Postal Serv-
ice under section 8906.’’. 
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(2) CLERICAL AMENDMENT.—The heading of sec-
tion 8909a of title 5, United States Code, is amended 
by striking ‘‘Benefit’’ and inserting ‘‘Benefits’’. 
(c) APPLICATION.— 
(1) CANCELLATION
OF
PAYMENTS.—Any pay-
ment required from the Postal Service under section 
8909a of title 5, United States Code, as in effect on 
the day before the date of enactment of this Act that 
remains unpaid as of such date of enactment is can-
celed. 
(2) EFFECT OF THIS ACT.—In any determina-
tion relating to the future liability for retiree health 
benefits of the United States Postal Service or the 
Postal Service Retiree Health Benefits Fund, the Of-
fice of Personnel Management shall take into account 
the actual and reasonably expected effects of this Act. 
(d) USE OF FUNDS FROM SALE OF REAL PROPERTY 
FOR CERTAIN PAYMENTS.— 
(1) IN GENERAL.—Chapter 29 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 2903. Use of funds from sale of property 
‘‘In the event that the Postal Service permanently 
ceases operations, any funds derived from the sale of any 
real property owned by the Postal Service shall be used to 
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pay any outstanding liability with respect to the salaries 
and expenses of any Postal Service employee. The balance 
of any remaining funds shall be deposited into the Postal 
Service Retiree Health Benefits Fund established under sec-
tion 8909a of title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions of such chapter is amended by adding after the 
item relating to section 2902 the following new item: 
‘‘2903. Use of funds from sale of property.’’. 
SEC. 103. NONPOSTAL SERVICES. 
(a) NONPOSTAL SERVICES.— 
(1) IN GENERAL.—Part IV of title 39, United 
States Code, is amended by adding after chapter 36 
the following: 
‘‘CHAPTER 37—NONPOSTAL SERVICES 
‘‘Sec. 
‘‘3701. Purpose. 
‘‘3702. Definitions. 
‘‘3703. Postal Service program for State governments. 
‘‘3704. Postal Service program for other Government agencies. 
‘‘3705. Transparency and accountability for nonpostal services. 
‘‘§ 3701. Purpose 
‘‘The purpose of this chapter is to enable the Postal 
Service to increase its net revenues through specific non-
postal products and services that are expressly authorized 
by this chapter. Postal Service revenues and expenses under 
this chapter shall be funded through the Postal Service 
Fund. 
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‘‘§ 3702. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘nonpostal services’ is limited to 
services offered by the Postal Service that are ex-
pressly authorized by this chapter and are not postal 
products or services; 
‘‘(2) the term ‘attributable costs’ has the meaning 
given such term in section 3631; and 
‘‘(3) the term ‘year’ means a fiscal year. 
‘‘§ 3703. Postal Service program for State governments 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this title, the Postal Service may establish a pro-
gram to enter into agreements with an agency of any State 
government, local government, or tribal government to pro-
vide property and services on behalf of such agencies for 
non-commercial products and services, but only if such 
property and services— 
‘‘(1) provide enhanced value to the public, such 
as by lowering the cost or raising the quality of such 
services or by making such services more accessible; 
‘‘(2) do not interfere with or detract from the 
value of postal services, including— 
‘‘(A) the cost and efficiency of postal serv-
ices; and 
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‘‘(B) unreasonably restricting access to post-
al retail service, such as customer waiting time 
and access to parking; and 
‘‘(3) provide a reasonable contribution to the in-
stitutional costs of the Postal Service, defined as re-
imbursement that covers at least 100 percent of at-
tributable costs of all property and services provided 
under each relevant agreement in each year. 
‘‘(b) PUBLIC NOTICE.—At least 90 days before offering 
a service under the program, the Postal Service shall make 
available to the public on its website— 
‘‘(1) the agreement with the agency regarding 
such service; and 
‘‘(2) a business plan that describes the specific 
service to be provided, the enhanced value to the pub-
lic, terms of reimbursement, the estimated annual re-
imbursement to the Postal Service, and the estimated 
percentage of attributable Postal Service costs that 
will be covered by reimbursement (with documenta-
tion to support the estimates). 
‘‘(c) PUBLIC COMMENT.—Before offering a service 
under the program, the Postal Service shall provide for a 
public comment period of at least 30 days that allows the 
public to post comments relating to the provision of such 
services on the Postal Service website. The Postal Service 
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shall make reasonable efforts to provide written responses 
to the comments on such website at least 30 days before of-
fering such services. 
‘‘(d) APPROVAL REQUIRED.—The Postal Service may 
not establish the program under subsection (a) unless the 
Governors of the Postal Service approve such program by 
a recorded vote that is publicly disclosed on the Postal Serv-
ice website with a majority of the total Governors voting 
for approval. 
‘‘(e) APPLICATION OF REPORTING REQUIREMENTS.— 
For purposes of the reporting requirements under section 
3705, the Postal Service shall submit a separate report for 
each agreement with an agency entered into under sub-
section (a) analyzing the costs, revenues, rates, and quality 
of service for the provision of all services under such agree-
ment, including information demonstrating that the agree-
ment satisfies the requirements of paragraphs (1) through 
(3) of subsection (a). 
‘‘(f) REGULATIONS REQUIRED.—The Postal Regu-
latory Commission shall issue such regulations as are nec-
essary to carry out this section. 
‘‘(g) DEFINITIONS.—For the purpose of this section— 
‘‘(1) the term ‘local government’ means a county, 
municipality, city, town, township, local public au-
thority, school district, special district, intrastate dis-
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trict, council of governments, or regional or interstate 
government entity; 
‘‘(2) the term ‘State government’ includes the 
government of the District of Columbia, the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and any other terri-
tory or possession of the United States; 
‘‘(3) the term ‘tribal government’ means the gov-
ernment of an Indian tribe, as that term is defined 
in section 4(e) of the Indian Self-Determination Act 
(25 U.S.C. 450b(e)); and 
‘‘(4) the term ‘United States’, when used in a 
geographical sense, means the States, the District of 
Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana 
Islands, and any other territory or possession of the 
United States. 
‘‘(h) CONFIDENTIAL INFORMATION.—Subsection (b) or 
(c) shall not be construed as requiring the Postal Service 
to disclose to the public any information— 
‘‘(1) described in section 410(c); or 
‘‘(2) exempt from public disclosure under section 
552(b) of title 5. 
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‘‘§ 3704. Postal Service program for other Government 
agencies 
‘‘(a) IN GENERAL.—The Postal Service may establish 
a program to provide property and services to other Govern-
ment agencies within the meaning of section 411, but only 
if such program provides a reasonable contribution to the 
institutional costs of the Postal Service, defined as reim-
bursement by each agency that covers at least 100 percent 
of the attributable costs of all property and service provided 
by the Postal Service in each year to such agency. 
‘‘(b) APPLICATION OF REPORTING REQUIREMENTS.— 
For purposes of the reporting requirements under section 
3705, the Postal Service shall submit a separate report for 
each agreement with an agency entered into under sub-
section (a) analyzing the costs, revenues, rates, and quality 
of service for the provision of all services under such agree-
ment, including information demonstrating that the agree-
ment satisfies the requirements of subsection (a). 
‘‘§ 3705. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL REPORT TO THE COMMISSION.— 
‘‘(1) IN GENERAL.—Not later than 90 days after 
the last day of each year, the Postal Service shall sub-
mit to the Postal Regulatory Commission a report 
that analyzes costs, revenues, rates, and quality of 
service for each agreement for the provision of prop-
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erty and services under this chapter, using such meth-
odologies as the Commission may prescribe, and in 
sufficient detail to demonstrate compliance with the 
requirements of this chapter. 
‘‘(2) SUPPORTING MATTER.—A report submitted 
under paragraph (1) shall include any nonpublic 
annex, the working papers, and any other supporting 
matter of the Postal Service and the Inspector Gen-
eral related to the information submitted in such re-
port. 
‘‘(b) CONTENT AND FORM OF REPORT.— 
‘‘(1) IN GENERAL.—The Postal Regulatory Com-
mission shall, by regulation, prescribe the content and 
form of the report required under subsection (a). In 
prescribing such regulations, the Commission shall 
give due consideration to— 
‘‘(A) providing the public with timely, ade-
quate information to assess compliance; 
‘‘(B) avoiding unnecessary or unwarranted 
administrative effort and expense on the part of 
the Postal Service; and 
‘‘(C) protecting the confidentiality of infor-
mation that is commercially sensitive or is ex-
empt from public disclosure under section 552(b) 
of title 5. 
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‘‘(2) REVISED
REQUIREMENTS.—The Commis-
sion may, on its own motion or on request of any in-
terested party, initiate proceedings to improve the 
quality, accuracy, or completeness of Postal Service 
data required by the Commission if— 
‘‘(A) the attribution of costs or revenues to 
property or services under this chapter has be-
come significantly inaccurate or can be signifi-
cantly improved; 
‘‘(B) the quality of service data provided to 
the Commission for a report under this chapter 
has become significantly inaccurate or can be 
significantly improved; or 
‘‘(C) such revisions are, in the judgment of 
the Commission, otherwise necessitated by the 
public interest. 
‘‘(c) AUDITS.—The Inspector General shall regularly 
audit the data collection systems and procedures used in 
collecting information and preparing the report required 
under subsection (a). The results of any such audit shall 
be submitted to the Postal Service and the Postal Regu-
latory Commission. 
‘‘(d) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
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or other matter, which it provides to the Postal Regu-
latory Commission in a nonpublic annex under this 
section contains information described in section 
410(c), or exempt from public disclosure under section 
552(b) of title 5, the Postal Service shall, at the time 
of providing such matter to the Commission, notify 
the Commission of its determination, in writing, and 
describe with particularity the documents (or portions 
of documents) or other matter for which confiden-
tiality is sought and the reasons therefor. 
‘‘(2) TREATMENT.—Any information or other 
matter described in paragraph (1) to which the Com-
mission gains access under this section shall be sub-
ject to paragraphs (2) and (3) of section 504(g) in the 
same way as if the Commission had received notifica-
tion with respect to such matter under section 
504(g)(1). 
‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 
‘‘(1) OPPORTUNITY
FOR
PUBLIC
COMMENT.— 
Upon receiving a report required under subsection 
(a), the Postal Regulatory Commission shall prompt-
ly— 
‘‘(A) provide an opportunity for comment 
on such report by any interested party; and 
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‘‘(B) appoint an officer of the Commission 
to represent the interests of the general public. 
‘‘(2) DETERMINATION OF COMPLIANCE OR NON-
COMPLIANCE.—Not later than 90 days after receiving 
a report required under subsection (a), the Postal 
Regulatory Commission shall make a written deter-
mination as to whether the nonpostal activities car-
ried out during the applicable year were or were not 
in compliance with the provisions of this chapter. For 
purposes of this paragraph, any case in which the re-
quirements for coverage of attributable costs have not 
been met shall be considered to be a case of non-
compliance. If, with respect to a year, no instance of 
noncompliance is found to have occurred, the deter-
mination shall be to that effect. Such determination 
of noncompliance shall be included with the annual 
compliance determination required under section 
3653. 
‘‘(3) NONCOMPLIANCE.—If a timely written de-
termination of noncompliance is made under para-
graph (2), the Postal Regulatory Commission shall 
take appropriate action. If the requirements for cov-
erage of attributable costs specified by this chapter are 
not met, the Commission shall, within 60 days after 
the determination, prescribe remedial action to restore 
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compliance as soon as practicable, including the full 
restoration of revenue shortfalls during the following 
year. The Commission may order the Postal Service 
to discontinue a nonpostal service under section 3703 
that persistently fails to meet cost coverage require-
ments. 
‘‘(4) DELIBERATE NONCOMPLIANCE.—In the case 
of deliberate noncompliance by the Postal Service 
with the requirements of this chapter, the Postal Reg-
ulatory Commission may order, based on the nature, 
circumstances, extent, and seriousness of the non-
compliance, a fine (in the amount specified by the 
Commission in its order) for each incidence of such 
noncompliance. All receipts from fines imposed under 
this subsection shall be deposited in the general fund 
of the Treasury. 
‘‘(f) REGULATIONS REQUIRED.—The Postal Regu-
latory Commission shall issue such regulations as are nec-
essary to carry out this section.’’. 
(2) CLERICAL AMENDMENT.—The table of chap-
ters for part IV of title 39, United States Code, is 
amended by adding after the item relating to chapter 
36 the following: 
‘‘37. Nonpostal services ........................................................................ 3701’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) SECTION
404.—Section 404(e) of title 39, 
United States Code, is amended— 
(A) in paragraph (2), by inserting after 
‘‘subsection’’ the following: ‘‘, or any nonpostal 
products or services authorized by chapter 37’’; 
and 
(B) by adding at the end the following: 
‘‘(6) Licensing which, before the date of enactment of 
this paragraph, has been authorized by the Postal Regu-
latory Commission for continuation as a nonpostal service 
may not be used for any purpose other than— 
‘‘(A) to continue to provide licensed mailing, 
shipping, or stationery supplies offered as of June 23, 
2011; or 
‘‘(B) to license other goods, products, or services, 
the primary purpose of which is to promote and en-
hance the image or brand of the Postal Service. 
‘‘(7) Nothing in this section shall be construed to pre-
vent the Postal Service from establishing nonpostal products 
and services that are expressly authorized by chapter 37.’’. 
(2) SECTION 411.—The last sentence of section 
411 of title 39, United States Code, is amended by 
striking ‘‘including reimbursability’’ and inserting 
‘‘including reimbursability within the limitations of 
chapter 37’’. 
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(3) TREATMENT OF EXISTING NONPOSTAL SERV-
ICES.—All individual nonpostal services, provided di-
rectly or through licensing, that are continued pursu-
ant to section 404(e) of title 39, United States Code, 
shall be considered to be expressly authorized by chap-
ter 37 of such title (as added by subsection (a)(1)) 
and shall be subject to the requirements of such chap-
ter. 
(4) REPEAL OF CERTAIN LIMITATIONS ON EX-
PERIMENTAL PRODUCTS.—Section 3641 of title 39, 
United States Code, is amended— 
(A) by striking subsections (b), (d), and (e); 
and 
(B) by redesignating— 
(i) subsection (c) as subsection (b); and 
(ii) subsections (f), (g), (h), and (i) as 
subsections (c), (d), (e), and (f), respectively. 
TITLE II—POSTAL SERVICE 
OPERATIONAL REFORMS 
SEC. 201. PERFORMANCE TARGETS AND TRANSPARENCY. 
(a) IN GENERAL.—Subchapter VII of chapter 36 of 
title 39, United States Code, is amended by inserting after 
section 3691 the following: 
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‘‘§ 3692. Performance targets and transparency 
‘‘(a) PERFORMANCE TARGETS.—Each year, to ensure 
that mail service for postal customers meets the service 
standards for market-dominant products, established under 
section 3691, the Postal Service shall— 
‘‘(1) at least 60 days before the beginning of the 
fiscal year in which they will apply, establish and 
provide to the Postal Regulatory Commission reason-
able targets for performance; and 
‘‘(2) provide the previous fiscal years’ perform-
ance targets in its Annual Compliance Report to the 
Postal Regulatory Commission for evaluation of com-
pliance. 
‘‘(b) PUBLIC PERFORMANCE DASHBOARD.— 
‘‘(1) IN GENERAL.—The Postal Service shall de-
velop and maintain a publicly available Website with 
an interactive web-tool that provides performance in-
formation for market-dominant products that is up-
dated on a weekly basis. 
‘‘(2) PERFORMANCE
INFORMATION.—The per-
formance information provided on the Website shall 
include— 
‘‘(A) the type of market-dominant product; 
‘‘(B) geographic area at the nationwide, 
Area, and District level; 
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‘‘(C) time periods showing performance in-
formation in annual, quarterly, monthly, and 
weekly segments; 
‘‘(D) comparisons of performance informa-
tion for market-dominant products for previous 
time periods to facilitate identification of per-
formance trends; and 
‘‘(E) the current performance targets and 
previous fiscal year performance targets, estab-
lished under subsection (a)(1). 
‘‘(3) COMPREHENSIBILITY.—The Website shall 
include plain language descriptions of the elements 
required under paragraph (2) and information on the 
collection process, measurement methodology, com-
pleteness, accuracy, and validity of the performance 
information provided on the Website. 
‘‘(4) ADDRESS
SEARCH
FUNCTIONALITY.—The 
Website shall include functionality to enable a user to 
search for performance information by street address, 
ZIP Code, or post office box. 
‘‘(5) FORMAT.—The performance information 
provided on the Website shall be made available— 
‘‘(A) in a manner that— 
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‘‘(i) presents the information referenced 
under paragraph (2) on an interactive 
dashboard; 
‘‘(ii) is searchable and may be sorted 
and filtered by the elements described in 
paragraph (2); and 
‘‘(iii) to the extent practicable, enables 
any person or entity to download in bulk— 
‘‘(I) such performance informa-
tion; and 
‘‘(II) the results of a search by the 
elements described in paragraph (2); 
‘‘(B) in an open format that permits any 
individual or entity to reuse and analyze the 
performance information; and 
‘‘(C) in a structured data format, to the ex-
tent practicable. 
‘‘(6) CONSULTATION.—The Postal Service shall 
regularly consult with the Postal Regulatory Commis-
sion on appropriate features and information to be 
included on the Website. 
‘‘(7) PUBLIC INPUT.—The Postal Service shall— 
‘‘(A) solicit public input on the design and 
implementation of the Website; and 
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‘‘(B) maintain a public feedback tool, to en-
sure features of, and information on, the Website 
is usable and understandable. 
‘‘(8) DEADLINE.—The Website shall be imple-
mented and made available to the public not later 
than the date on which the performance targets are 
provided to the Postal Regulatory Commission under 
subsection (a)(1). 
‘‘(9) AVAILABILITY.—A link and plain language 
description of the Website shall be made available on 
the website where the performance targets and meas-
urements established under subsection (a)(1) are made 
available. 
‘‘(10) REPORTING.—The dashboard referred to in 
paragraph (5)(A)(i) shall be referenced in the Annual 
Performance Plan under section 2803, the Annual 
Performance Report under section 2804, and the An-
nual Report under section 2402. 
‘‘(11) DEFINITIONS.—In this subsection— 
‘‘(A) PERFORMANCE
INFORMATION.—The 
term ‘performance information’ means the objec-
tive external performance measurements estab-
lished under section 3691(b)(1)(D). 
‘‘(B) WEBSITE.—The term ‘Website’ means 
the website described in paragraph (1).’’. 
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(b) CLERICAL AMENDMENT.—The table of sections for 
such subchapter is amended by inserting after the item re-
lating to section 3691 the following: 
‘‘3692. Performance targets and transparency.’’. 
SEC. 202. INTEGRATED DELIVERY NETWORK. 
Section 101(b) of title 39, United States Code, is 
amended by inserting before ‘‘The Postal Service’’ the fol-
lowing: ‘‘The Postal Service shall maintain an integrated 
network for the delivery of market-dominant and competi-
tive products (as defined in chapter 36 of this title). Deliv-
ery shall occur at least six days a week, except during weeks 
that include a Federal holiday or in emergency situations, 
such as natural disasters.’’. 
SEC. 203. REVIEW OF POSTAL SERVICE COST ATTRIBUTION 
GUIDELINES. 
Not later than the date that is one year after the date 
of the enactment of this Act, the Postal Regulatory Commis-
sion shall initiate a review of the regulations issued pursu-
ant to sections 3633(a) and 3652(a)(1) of title 39, United 
States Code, to determine whether revisions are appropriate 
to ensure that all direct and indirect costs attributable to 
competitive and market-dominant products are properly at-
tributed to those products, including by considering the un-
derlying methodologies in determining cost attribution and 
considering options to revise such methodologies. If the 
Commission determines, after notice and opportunity for 
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public comment, that revisions are appropriate, the Com-
mission shall make modifications or adopt alternative 
methodologies as necessary. 
SEC. 204. RURAL NEWSPAPER SUSTAINABILITY. 
Section 3626(h) of title 39, United States Code, is 
amended by striking ‘‘10 percent’’ and inserting ‘‘50 per-
cent’’. 
SEC. 205. FUNDING OF POSTAL REGULATORY COMMISSION. 
(a) IN GENERAL.—Subsection (d) of section 504 of title 
39, United States Code, is amended to read as follows: 
‘‘(d)(1) Not later than September 1 of each fiscal year 
(beginning with fiscal year 2022), the Postal Regulatory 
Commission shall submit to the Postal Service a budget of 
the Commission’s expenses, including expenses for facilities, 
supplies, compensation, and employee benefits, for the fol-
lowing fiscal year. Any such budget shall be deemed ap-
proved as submitted if the Governors fail to adjust the budg-
et in accordance with paragraph (2). 
‘‘(2)(A) Not later than 30 days after receiving a budget 
under paragraph (1), the Governors holding office, by unan-
imous written decision, may adjust the total amount of 
funding requested in such budget. Nothing in this subpara-
graph may be construed to authorize the Governors to adjust 
any activity proposed to be funded by the budget. 
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‘‘(B) If the Governors adjust the budget under subpara-
graph (A), the Postal Regulatory Commission shall adjust 
the suballocations within such budget to reflect the total ad-
justment made by the Governors. The budget shall be deemed 
approved on the date the Commission makes any such ad-
justments. The Commission may make further adjustments 
to the suballocations within such budget as necessary. 
‘‘(3) Expenses incurred under any budget approved 
under this subsection shall be paid out of the Postal Service 
Fund established under section 2003.’’. 
(b) CONFORMING AMENDMENTS.—Title 39, United 
States Code, is amended— 
(1) in section 2003(e), by striking ‘‘(B) all ex-
penses of the Postal Regulatory Commission, subject 
to the availability of amounts appropriated under 
section 504(d);’’ and inserting ‘‘(B) all expenses of the 
Postal Regulatory Commission, pursuant to section 
504(d);’’; and 
(2) in section 2009— 
(A) by striking ‘‘, (2)’’ and inserting ‘‘, and 
(2)’’; and 
(B) by striking ‘‘, and (3) the Postal Regu-
latory Commission requests to be appropriated, 
out of the Postal Service Fund, under section 
504(d) of this title’’. 
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SEC. 206. FLATS OPERATIONS STUDY AND REFORM. 
(a) FLATS OPERATIONS STUDY.— 
(1) IN GENERAL.—The Postal Regulatory Com-
mission, in consultation with the Inspector General of 
the United States Postal Service, shall conduct a 
study to— 
(A) comprehensively identify the causes of 
inefficiencies in the collection, sorting, transpor-
tation, and delivery of Flats; and 
(B) quantify the effects of the volume trends, 
investments decisions, excess capacity, and oper-
ational inefficiencies of the Postal Service on the 
direct and indirect costs of the Postal Service 
that are attributable to Flats. 
(2) POSTAL SERVICE ASSISTANCE.—For the pur-
poses of carrying out the study under paragraph (1), 
the Postal Service shall, upon request by the Postal 
Regulatory Commission, consult with the Postal Reg-
ulatory Commission and provide— 
(A) access to Postal Service facilities to per-
sonnel of the Postal Regulatory Commission; and 
(B) information and records necessary to 
conduct such study. 
(3) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Postal Regu-
latory Commission shall submit to Congress and the 
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Postmaster General a report on the findings of the 
study conducted under paragraph (1). 
(4) FLATS
DEFINED.—In this subsection, the 
term ‘‘Flats’’ means products that meet the physical 
standards described in the Domestic Mail Manual (as 
in effect on the date of the enactment of this Act) for 
Flats mail for any class of mail. 
(b) FLATS OPERATIONS REFORM.— 
(1) IN
GENERAL.—Not later than six months 
after the date on which the Postal Regulatory Com-
mission submits the report described in subsection 
(a)(3), the Postal Service shall— 
(A) develop and implement a plan to rem-
edy each inefficiency identified in the study con-
ducted under subsection (a)(1) to the extent prac-
ticable; and 
(B) if the Postal Service determines that 
remedying any such inefficiency is not prac-
ticable, provide to Congress and the Postal Regu-
latory Commission an explanation why rem-
edying such inefficiency is not practicable, in-
cluding whether it may become practicable to 
remedy such inefficiency at a later time. 
(2) IMPLEMENTATION REQUIREMENTS.—Prior to 
implementing the plan described in paragraph (1)— 
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(A) the Postal Regulatory Commission must 
approve the plan; and 
(B) the Postal Service shall provide an ade-
quate opportunity for public comment on the 
plan. 
(3) COMPLETION NOTICE.—On the date on which 
the plan described in paragraph (1) is fully imple-
mented, as determined by the Postmaster General, the 
Postmaster General shall submit to Congress and the 
Postal Regulatory Commission a written notice of 
such implementation. 
(c) SUBSEQUENT RATE ADJUSTMENTS.—During the 
five-year period beginning on the date on which the Post-
master General submits the notice under subsection (b)(3), 
the Postal Service shall consider the findings of the report 
described in subsection (a)(3) and the efficacy of the plan 
described in subsection (b)(1) in remedying the inefficien-
cies identified in the study conducted under subsection 
(a)(1) when making any adjustment to the rate of a market- 
dominant product (as defined in section 102 of title 39, 
United States Code). 
SEC. 207. REPORTING REQUIREMENTS. 
(a) IN GENERAL.—Not later than six months after the 
date of the enactment of this Act, and every six months 
thereafter, the Postmaster General shall submit to the Presi-
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dent, the Postal Regulatory Commission, the Committee on 
Homeland Security and Governmental Affairs of the Sen-
ate, and the Committee on Oversight and Reform of the 
House of Representatives a report on the operations and 
financial condition of the Postal Service during the six- 
month period ending on the date on which the Postmaster 
General submits such report. 
(b) CONTENTS.—Each report submitted under this sec-
tion shall include updates, details of changes from previous 
standards and requirements, and assessments of progress 
being made on the operations and financial condition of 
the Postal Service, including— 
(1) the actual mail and package volume growth 
relative to any mail or package volume growth projec-
tions previously made or relied upon by the Postal 
Service, including a discussion of the reasons for the 
differences in projections and the associated adjust-
ments being made in order to accommodate any such 
differences; 
(2) the effect of pricing changes on product vol-
ume for market-dominant and competitive products, 
and associated revenue effects on financial projec-
tions, including a discussion of the reasons behind the 
differences in projections and associated adjustments 
being made; 
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(3) customer use of network distribution centers 
and processing and distribution centers, and associ-
ated costs and revenue effects; 
(4) the status of, and any substantial pro-
grammatic changes to, the USPS Connect program 
relative to previous plans by the Postal Service, in-
cluding online sales and customer expectations re-
garding shipping speeds and shopping preferences rel-
ative to projections, as well as associated implementa-
tion costs and revenue effects on the financial projects; 
(5) the use of Priority Mail, Priority Mail Ex-
press, First-Class Package Service, and Parcel Select 
services (as such terms are defined in the Domestic 
Mail Classification Schedule as in effect on the date 
of the enactment of this Act) among businesses of var-
ious sizes, and associated revenue effects; 
(6) the use of USPS Connect Returns service 
among customers, and associated implementation 
costs and revenue effects; 
(7) the use of USPS E-Commerce Marketplace 
among customers, and associated implementation 
costs and revenue effects; 
(8) updates on the reliability, efficiency, and 
cost-effectiveness of the transportation network, in-
cluding the manner in which ground transportation 
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is utilized over air transportation for types of prod-
ucts; 
(9) a review of efforts to enhance employee train-
ing, safety, and wellbeing, including associated effects 
on employee recruitment, satisfaction, and retention; 
(10) a review of efforts being made to improve 
employee allocation, including changes of non-career 
employees to career status, and any associated im-
pacts to operational expenses and processing, trans-
portation, and delivery efficiency; 
(11) the rate of planned investment into Postal 
Service processing, transportation, and delivery 
equipment and infrastructure for market-dominant 
and competitive products, and a review of any associ-
ated effects on operational expenses and efficiency; 
(12) changes to network distribution centers and 
the expansion of regional distribution centers, includ-
ing costs associated with the changes and any realized 
reduction in operational expenses or improved re-
source efficiencies; 
(13) a review of the ability of the Postal Service 
to meet performance targets established under section 
3692(a)(1)(A) of title 39, United States Code; 
(14) a discussion of the progress of the Postal 
Service in achieving any new, self-funded invest-
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ments, including the amounts realized and expended 
to date, and a discussion of the reasons behind any 
disparities in the assumptions regarding the expected 
progress of the Postal Service getting new, self-funded 
investments to accommodate changes; and 
(15) any other information the Postal Service 
determines relevant, such as barriers or unanticipated 
events, in order to help the Postal Regulatory Com-
mission, Congress, the President, and the American 
public evaluate the success or difficulties faced by the 
Postal Service in implementing the reform plan. 
(c) CONFIDENTIAL INFORMATION.— 
(1) IN
GENERAL.—The report required under 
this subsection shall be submitted in a form that ex-
cludes any proprietary or confidential information 
and trade secrets. 
(2) NOTIFICATION.—If the Postal Service deter-
mines that any information must be excluded under 
paragraph (1), the Postal Service shall, at the time 
of submitting the report, notify the President, the 
Committee on Oversight and Reform of the House of 
Representatives, the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate, and the 
Postal Regulatory Commission in writing of its deter-
mination and describe in detail the information for 
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which confidentiality is sought and the reasons there-
for. 
(3) ANNEXES.—The Postal Service shall submit 
to the persons and entities notified under paragraph 
(2) any information excluded under paragraph (1) in 
an annex that shall be treated as confidential in ac-
cordance with paragraph (4). 
(4) TREATMENT.—No person may, with respect 
to any information which such person receives under 
paragraph (4)— 
(A) use such information for purposes other 
than the purposes for which it is supplied; or 
(B) permit any person or entity other than 
a person or entity notified under paragraph (2), 
or the staff thereof, to have access to any such in-
formation. 
(d) TERMINATION.—This subsection shall terminate on 
the date that is five years after the date on which the first 
report required by this section is submitted. 
SEC. 208. POSTAL SERVICE TRANSPORTATION SELECTION 
POLICY REVISIONS. 
Section 101(f) of title 39, United States Code, is 
amended— 
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(1) by striking ‘‘prompt and economical’’ and 
inserting ‘‘prompt, economical, consistent, and reli-
able’’; 
(2) by inserting after ‘‘all mail’’ the following: 
‘‘in a manner that increases operational efficiency 
and reduces complexity’’; 
(3) 
by 
inserting 
‘‘cost-effective’’ 
after 
‘‘to 
achieve’’; and 
(4) by inserting ‘‘also’’ after ‘‘Nation shall’’. 
SEC. 209. USPS INSPECTOR GENERAL OVERSIGHT OF POST-
AL REGULATORY COMMISSION. 
(a) IN GENERAL.—Section 8G of the Inspector General 
Act of 1978 (5 U.S.C. App.) is amended— 
(1) in subsection (a)(2), by striking ‘‘the Postal 
Regulatory Commission,’’; and 
(2) in subsection (f)(2)— 
(A) by striking ‘‘(2) In carrying’’ and in-
serting ‘‘(2)(A) In carrying’’; and 
(B) by adding at the end the following: 
‘‘(B) In carrying out the duties and responsibil-
ities specified in this Act, the Inspector General of the 
United States Postal Service shall function as the In-
spector General for the Postal Regulatory Commis-
sion, and shall have equal responsibility over the 
United States Postal Service and the Postal Regu-
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latory Commission. The Commission shall comply 
with the Inspector General’s oversight as if the Com-
mission were a designated Federal entity under para-
graph (a)(2) of this section.’’. 
(b) SAVINGS PROVISION.— 
(1) LEGAL DOCUMENTS.—Any order, determina-
tion, rule, regulation, permit, grant, loan, contract, 
agreement, certificate, license, or privilege that has 
been issued, made, granted, or allowed to become effec-
tive that is in effect on the effective date of this sec-
tion shall continue in effect according to their terms 
until modified, terminated, superseded, set aside, or 
revoked in accordance with law. 
(2) PROCEEDINGS.—This section and the amend-
ments made by this section shall not affect any pro-
ceeding pending on the effective date of this section 
before an office transferred by either such subsection, 
but such proceeding shall be continued. Nothing in 
this paragraph shall be considered to prohibit the dis-
continuance or modification of any such proceeding 
under the same terms and conditions and to the same 
extent that such proceeding could have been discon-
tinued or modified if this section or such amendments 
had not been enacted. 
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(3) SUITS.—This section and the amendments 
made by this section shall not affect any suit com-
menced before the effective date of this section, and in 
any such suit, proceeding shall be had, appeals taken, 
and judgments rendered in the same manner and 
with the same effect as if this section or such amend-
ments had not been enacted. 
(4) REFERENCES.—Any reference in any other 
Federal law, Executive order, rule, regulation, or dele-
gation of authority, or any document relating to the 
Inspector General of the Postal Regulatory Commis-
sion shall be deemed to refer to the Inspector General 
of the United States Postal Service. 
(c) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 504 of title 39, United States Code, is amended by 
striking subsection (h). 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date that 
is 180 days after the date of enactment of this Act. 
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Union Calendar No. 171 
117TH CONGRESS 
2D SESSION 
H. R. 3076 
[Report No. 117–89, Parts I and II] 
A BILL 
To provide stability to and enhance the services of 
the United States Postal Service, and for other 
purposes. 
FEBRUARY 1, 2022 
Committees on Energy and Commerce and Ways and 
Means discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered 
to be printed 
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