Last week, Senators Tom Coburn (R-OK) and Tom Carper (D-DE) sponsored a substitute amendment to S. 1486, the “Postal Reform Act of 2013.” DMA remains opposed to the Postal Reform Act of 2013 in its current form. On January 29th, the Senate Committee on Homeland Security and Governmental Affairs will be holding a mark-up on the bill. 

Now is the time to take action. The substitute amendment offered by Senators Coburn and Carper will be devastating to the postal community. That is why we need you to urge your Senators to oppose the language in Section 301 of S. 1486 as soon as possible. Here are the facts:

Currently, Section 301 in S. 1486 would make the 4.3 percent exigent rate increase approved by the Postal Rate Commission permanent, costing mailers billions of dollars. Additionally, the amendment removes the current Consumer Price Index (CPI) cap on postage and permits the U.S. Postal Service (USPS) to increase rates to CPI+1 percent on all USPS’ “Market Dominant” products. This grants the Postal Service, an institution that remains a monopoly in paper communications, a virtually unchecked rate authority.

There are other proposals on the table, but none are workable for mailers. The mailing industry as a whole has lost over one million jobs since 2007. A rate increase of 4.3 percent, tacked onto the CPI+1 percent, is more than four times the rate of inflation, which will put additional pressure on an already damaged industry. The Postal Service is losing $25 million per day and mailers are paying for it. Don’t let this happen.

There is some hope. Senator Tammy Baldwin (D-WI) will be offering an amendment that strikes Section 301 from Senator Coburn and Carper’s bill and leaves the rate making structure as it is today. DMA supports Senator Baldwin’s amendment and wants you to urge your Senators to support the Baldwin amendment as well.

Click here to take DMAAction and express your opposition to S. 1486, as well as your support for Senator Baldwin’s amendment.

Update – 2/7/2014

DMA has issued a statement expressing disappointment that the US Senate Committee on Homeland Security and Governmental Affairs rejected Senator Tammy Baldwin’s amendment to the Carper-Coburn postal-reform bill:

“DMA is extremely disappointed in the outcome of today’s markup of the Postal Reform bill.  We oppose the Postal Reform Act of 2013 in its current form,” said Peggy Hudson, DMA’s senior vice president of government affairs.  “DMA will work closely with our Senate allies to improve this legislation for the mailing community.  We extend our sincere thanks to Senator Tammy Baldwin (D-WI) for her leadership and support to the mailing community.”

For more information, please contact Cristina DeBiase, DMA’s government affairs associate.