Luetkemeyer, McHenry, Comer Slam USPS’ Extension of Failed Postal Banking Pilot Program
Washington, April 20, 2022
Tags: Financial Services
WASHINGTON, D.C. – Today, Congressman Blaine Luetkemeyer (MO-03), Ranking Member on the Subcommittee on Consumer Protection and Financial Institutions, Congressman Patrick McHenry (NC-10), Ranking Member on the House Financial Services Committee, and Congressman James Comer (KY-01), Ranking Member on the Oversight and Reform Committee sent a letter to Postmaster General Louis DeJoy. The Republican Leaders slam the United States Postal Service (USPS) for overstepping its statutory authority by extending the failed postal banking pilot program. Excerpts and the link to the full letter can be found below.
“The [USPS] pilot program—which allows customers to cash payroll and business checks up to $500—was launched in September 2021 without approval from Congress or the Postal Regulatory Commission (PRC). The program violated long-standing prohibitions that prevent USPS from offering or developing new non-postal products, and over the course of four months, it proved extremely unpopular. It is therefore unclear why, and on what basis, the program has been extended.”
“The failure of the pilot program demonstrates that consumers are not interested in banking with the federal government, including USPS. That is why Congress specifically prevented taxpayer funds from being used for USPS pilot programs for non-banking financial services in the recently enacted Consolidated Appropriations Act, 2022. Furthermore, Congress did not expand the offering of financial services in the recent Postal Service Reform Act of 2022 (H.R. 3076).”
“Congress’ actions make clear the USPS should remain focused on its core mission. The fact that only six people used the postal banking pilot confirms that consumers remain supportive of the free market and look to private firms for technological solutions to meet their banking needs. Republicans on the committees of jurisdiction in Congress will conduct oversight of this program as USPS attempts to justify its continued existence…”
Link to the full letter can be found HERE.