USPS to shut three Capitol Hill locations by August
The Washington Post reported that the U.S. Postal Service has decided to officially close three Capitol Hill retail post office locations by the end of August. The postal locations affected are the ones located in the Capitol building and the Rayburn and Cannon House Office buildings. However, the Post noted that workers looking for direct mail solutions still have postal options within the area. According to the USPS, the decision to close the Capitol locations will save the organization around $2 million over the next ten years.
USPS attempts more budget cuts
Federal News Radio reported that this closure is a direct result of a USPS initiative that began in 2011 that aimed to cut costs based on the company financials. In the initial plan, the postal service considered shutting 3,700 under performing locations, however members of Congress and some USPS employees disputed the proposal for the Capitol Hill closures.
Postmaster General Pat Donahue has pleaded with Congress to allow the USPS more authority when making decisions to restructure the organization and cut costs, according to Federal News Radio. However, such efforts on his part have failed and although it was never approved by the House of Representatives, the 21st Century Postal Service Act passed by the Senate last year made it tougher for the USPS to shut locations around the country.
The postal agency reported a $1.9 billion loss in the previous quarter and maxed out their borrowing limit of $15 billion last year. However, the agency still missed two payments slated towards future retiree benefit plans.
The final decision to close came after a recommendation by Rep. Candice Miller, (D-MIch.) who is the Committee on House Administration Chairman, and Rep. Darrell Issa, (R-Calif.), House Oversight and Government Reform Committee Chairman.
"Congress should lead by example and not treat itself to a higher level of service than it needs or is available to the average American," said Issa and Miller in a joint statement. "The cost savings from these consolidations are a small but symbolically important step in restoring USPS to long-term financial solvency."
As the USPS continues to restructure, customers may see longer delivery times than expected, making address verification software vital to preserving direct mail budgets. Many companies looking to use mailing campaigns to cut costs can benefit from Postal software.