The stimulus package was signed into law on Sunday and, as PostCom reported, includes a provision that converts $10 billion in borrowing authority for the Postal Service to a “grant” that will not require prepayment if used to offset impacts of the pandemic.
As Postal Reporter reported, the $10 billion line of credit had been enacted as part of the CARES Act in March. It also pointed to a statement from the National Postal Mail Handlers Union that said while providing relief to the USPS, it may fall short of what is needed. “In April, the USPS Board of Governors requested $25 billion in emergency funding to help combat revenue loss due to the pandemic,” the Union said.
The Postal Service issued the following statement from Postmaster General Louis DeJoy about the legislation on Wednesday:
“On behalf of the 644,000 men and women of the Postal Service, I want to thank Congress and the Administration for recognizing both the essential role we play in serving the nation and the impact of COVID-19 on our operations. We will continue to work with Secretary Mnuchin and the Treasury Department to execute on converting the $10 billion borrowing authority to funding that we need as a result of the pandemic for operating expenses.”