Trump administration considers leveraging emergency coronavirus loan to force Postal Service changes
President Trump has railed for years against what he sees as mismanagement of the agency, which he argues has been exploited by sites such as Amazon.
'The Treasury Department is considering taking unprecedented control over key operations of the U.S. Postal Service by imposing tough terms on an emergency coronavirus loan from Congress, which would fulfill President Trump’s longtime goal of changing how the service does business, according to two people familiar with the matter.
Officials working under Treasury Secretary Steven Mnuchin, who must approve the $10 billion loan, have told senior officials at the USPS in recent weeks that he could use the loan as leverage to give the administration influence over how much the agency charges for delivering packages and how it manages its finances, according to the two people, who spoke on the condition of anonymity because the talks are preliminary.
Trump has railed for years against what he sees as mismanagement at the Postal Service, which he argues has been exploited by e-commerce sites such as Amazon, and has sought to change how much the agency charges for delivery packages. (Amazon’s founder and chief executive Jeff Bezos owns The Washington Post.)
Under the $2 trillion coronavirus stimulus relief passed last month, the Treasury was authorized to loan $10 billion to the USPS, which says it may not be able to make payroll and continue mail service uninterrupted past September. Mnuchin rejected a bipartisan Senate proposal to give the Postal Service a bailout amid the negotiations over that legislation, a senior Trump administration official and a congressional official previously told The Post.
The borrowing terms have only been discussed among both agencies’ leadership and have not been made public because the Postal Service hasn’t officially requested the loan, the two people familiar with the matter said. Mnuchin could still decide not to pursue tough terms as the September deadline nears. The Postal Service would not have to use the entire $10 billion loan at one time, but could borrow up to that amount at any given time.
In discussions with senior USPS personnel, Treasury officials have said they are interested in raising rates on the Postal Service’s lucrative package business, its sole area of profitability in recent years. Treasury also could review all large postal contracts with package companies to push for greater margins on deliveries.'>>>
https://www.washingtonpost.com/business/2020/04/23/10-billion-treasury-loan-usps/?
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