NRLCA: Administration Unveils Detailed FY2020 Budget

The Trump Administration released more details on how it plans to reduce the deficit through cost-saving cuts to the Postal Service on March 18. For the period spanning 2020 to 2029, the plan calls for a USPS budget reduction of $98.2 billion, with spending incrementally reduced each year leading up to 2029.



Part of the justification for the cuts stems from the Administration’s assertion that the USPS’ first-class mail revenue model is outdated due to the rise of digital communications and subsequent drop in revenue.

The budget calls for re-amortizing payments to the Retiree Health Benefits Fund, “including those payments missed in previous years, based on the Postal employee population at or near the retirement age.” Other changes include how rates are set for products not considered part of the universal service obligation, reducing delivery frequency, adding private sector partnerships, matching wages with other Federal employees, licensing mailbox access, adding government services to retail locations, increasing FERS contributions, changing from high-3 to high-5 annuity calculations, reducing the TSP G Fund interest rate, and reducing Federal contributions to FEHBP so that active and retired employees pay more into the program.
Administration Unveils Detailed FY2020 Budget

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