“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.
“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.”
“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.
“Treasury officials have said they may press the agency to demand tougher concessions from its powerful postal unions — among the public-sector unions that still retain significant leverage in negotiations with the government.
“The officials have also said Mnuchin wants the authority to review hiring decisions at the agency’s senior levels, including the selection of the next postmaster general, a decision that until now has been left to the Postal Service’s five-member board of governors.”
(https://www.washingtonpost.com/business/2020/04/23/10-billion-treasury-loan-usps/)
danelabonte 