Senate Committee on Homeland Security and Governmental Affairs

"Examining Finances and the Operations of the United States Postal

Service During COVID-19 and Upcoming Elections”

9:00 AM August 21st 2020

215 Dirksen Senate Office Building

Overview:

On Friday, August 21st 2020, the Senate Committee on Homeland Security and Governmental
Affairs held a full hearing entitled “Examining Finances and the Operations of the United States
Postal Service During COVID-19 and Upcoming Elections”. The committee heard testimony
from:
● Louis DeJoy, the Postmaster General of the United States Postal Service.

Copies of their written testimony can be found here.

The committee focused their questions on the reliability and stability of the USPS during the
upcoming election and the ongoing pandemic. Senators expressed their concern over complaints
of long waits for checks, medication and other essential mail from constituents. The Postmaster
General emphasized that he and USPS are committed to having a fair and efficient election as far
as mail-in-ballots are concerned.

Many democratic members of the committee noted their disapproval of policy changes made by
the new Postmaster General that they say have caused the dangerous delays in delivery of mail.
They noted their concern for American citizens who rely on USPS for delivery of essential items
such as medication. Both sides of the aisle seeked confirmation that ballots by mail would not be
delayed, to which Mr. DeJoy assured them they would not be.
Opening Statements:

Chairman Ron Johnson (R-WI) mentioned the “hyperbolic false narrative” that he said the
Democrats have been spreading and stated that he hoped the committee could stick to the facts
today. He stated that the Postmaster General is not appointed by President Trump, but rather a
unanimous decision by bipartisan governors. He stated that a failure to provide funding to the
Postal Service will not interfere with the election. He did mention that he believes the financial
future of the Postal System is bleak and that the 2006 Postal Reform Bill did not appropriately
provide financial liability. The senator said that the use and payment of overtime costs represent
45% of the Postal Systems $8 billion loss last year.

Ranking member Gary Peters (D-MI) mentioned the importance of the postal service to many
Americans, and stated that Mr. DeJoy has undermined the system, which will and has wreaked
havoc on American families. He stated that the changes the Postmaster General has implemented
are not inevitable or a side effect of the pandemic, but a serious problem for companies and
families. He gave examples of Americans who have suffered consequences from the changes Mr.
DeJoy implemented. He added that he has received more than 7500 examples of delays.

Witness Testimony:

Postmaster General, Louis DeJoy stated that he believes that the Postal service has an
opportunity to better serve the American Public and in a more efficient and financially
sustainable fashion. He stated that this year they will lose $9 billion. He called for reform
legislation that addresses the unaffordable retirement payments and the combination of
retirement health benefits programs with medicare. He also asked that there is a rationalization of
pension payments and asked that Congress enact legislation that will provide postal service with
financial relief, and a rational regulatory system for mail products. He stated that the Postal
service must adapt to realities of the market place and generate revenue.

Member Questions
Senator Johnson asked about the election notice sent by the postal services general council. Mr.
DeJoy said he would like to emphasize that there has been no changes to election mail in relation
to the 2020 election. Mr. DeJoy stated that the Postal Service has more than adequate capacity to
handle the mail-in-ballot system this election. Senator Johnson asked about the retirement of blue
boxes and insinuated that this was a normal process with the decline in in-person mail. Mr.
DeJoy stated that it is a data driven method based on the use of collection boxes in particular
neighborhoods.

Senator Peters asked if Mr. DeJoy believes that people can be hurt by a delay in mail. Mr. DeJoy
stated that he does not believe the organizational changes have affected the delays in the mail.
Senator Peters criticized the Postmaster General for the drop in on time mail delivery since he
took over the position. Mr. DeJoy stated that USPS employees are also experiencing this
pandemic, which contributes to these delays. Senator Peters asked if USPS is suspending the
policy limiting extra trips and limiting overtime, to which Mr. DeJoy stated that they are not and
that they never limited overtime. He also stated that he did not give the order to close post offices
and that he does not have any intention to bring back mail sorting machines because they are not
needed. He mentioned that he has not spoken to the President or Mark Meadows about any
changes and only mentioned to Secretary Mnuchin that he was working on a plan for changes but
did not specify.

Senator Rob Portman (R-OH) stated there has been a lot of misinformation spread about the
situation with USPS. He asked Mr. DeJoy if he supports absentee voting and voting by mail, to
which he replied that he himself has voted by mail and that the Postal Service will deliver and
process every ballot that it receives. Senator Portman asked about the news coverage that has
said that the Postal Service told states it cannot guarantee all ballots will be delivered on time
and whether or not that is due to a lack of funding or individual states voting laws. Mr. DeJoy
stated that this was not a change from recent months but something that has come more to light
with the pandemic. He stated that if everyone follows the process put out, there should not be a
problem. Senator Portman stated that the Post Office and state election systems need to work
better together.

Senator Carper (D-DE) stated that he has seen a steady uptick in complaints with the postal
service and stated that the President is trying to suppress the vote and interfere with the election.
He asked the Mr. DeJoy about changes that would slow down mail and make it more expensive
to vote by mail in Alaska, Hawaii, and Puerto Rico. Mr. Dejoy replied that they are considering
dramatic changes that will improve service to the American people. He asked if he supports the
federal appropriation of postal service to deal with covid related loss, to which he replied that he
does. He asked if there is enough capacity for Christmas and Mother’s Day at USPS, and Mr.
DeJoy replied that they do have the capacity currently. Mr. DeJoy stated that the American
people can feel comfortable that the Postal Service will deliver this election.

Senator Maggie Hassan (D-NH) asked Mr. DeJoy about the letter she sent him next week having
to do with veterans and disabled people’s need for timely delivery of essential items. She gave an
example of a constituent who is having to ration their pills. She asked Mr. DeJoy about the plans
the Postal Service has to deal with voting by mail and if the letters they have sent to Congress so
far are the complete plan that USPS has. He replied that the USPS has detailed processes and
expanded plans for voting by mail. She asked if he would be able to share those plans by Sunday
night and he said he would check and get back to her. She then asked about the decommissioning
of sorting machines. He replied that he is not sure about any direct orders in New Hampshire.

Senator Scott (R-FL) asked what makes Mr. DeJoy qualified to be the Postmaster General. He
responded that his experience with large logistical transformations and big projects he has done
for Boeing, Disney, and Verizon impressed the board. He said he is also committed to public
service and engaged in the nation. Senator Scott asked if Mr. DeJoy feels that USPS needs a
massive federal bailout to deliver mail on election day, to which he replied they do not but that
they do need to be reimbursed for their costs.

Senator Rosen (D-NV) asked if he would commit to providing the committee of all transcripts of
board of governor meetings by this Sunday, to which he replied he could not commit to that. She
next asked if before developing and implementing policy changes, they conducted any analysis
on how changes would affect seniors and veterans. He responded that the only changes he made
was that the trucks should leave on time. He stated that late deliveries occur for a variety of
reasons.

Senator Rand Paul (R-KY) asked some of the legal implications that prevent the Postmaster
General from fixing the loss in revenue in the USPS. Mr. DeJoy responded that he would like
more pricing freedom and would like to be able to require people to adhere to the correct
schedules. He added that he is optimistic about the future of the USPS.
Senator Romney (R-UT) began by expressing his appreciation for letter carriers and postal
workers. He mentioned that Mr. DeJoy had contributed to Trump’s campaign but had also
contributed to his own campaign, to which some would say he has contributed to both sides. He
asked if people vote within seven days of the election if those ballots will be received. Mr. DeJoy
said he is highly confident that those ballots will be received.

Senator Enzi (R-WY) stated that he has felt that he has been picked on by the postal service
recently, but appreciated the Postmaster General’s explanation of why there are delays and the
issues with the mail sorting machines. He stated that the post offices in D.C. and other urban
areas should be focused on for greater efficiency as well. Mr. DeJoy said that the organization
needs to move forward and that without legislation, USPS will run out of money.

Senator Hawley (R-MO) asked if the USPS will have enough operating revenue to function
through the november election. The Postmaster responded in the affirmative, and confirmed that
the USPS has seen an increase in total operating revenue and overall cash on hand. He estimated
that the USPS would require approximately 10 Billion dollars to recover from the impact of
COVID. The Postmaster clarifies that the 10 Billion will assist in covering operating costs.

Senator Sinema (D-AZ) expressed her concern about not only the election, but slow delivery of
medications, bills, and other essential mail. She then asked if local postal managers will be
authorized to make decisions regarding election mail. Mr. DeJoy confirmed this, and stated that
the USPS is in close communication with election officials, to ensure public confidence in a safe
and fair election. Senator Sinema then asked if the USPS plans to consolidate processing plans
before the election. Ms. DeJoy confirmed he would not close or consolidate any processing
plants before the election.

Closing statements

Chairman Johnson closed the hearing by thanking Mr. DeJoy for coming on such short notice.
He then acknowledged that the USPS has been impacted by COVID just as much as every other
aspect of our economy, and expressed his support of the USPS efforts towards long term
improvement. He then speculated that the vast majority of calls to the USPS were highly
scripted, and suspected this may be a well organized political move by the Democrats, and
blamed the lack of reform in the USPS on partisan fighting and hidden agendas. He concluded
his remarks by thanking Mr. DeJoy for his hard work and the work of USPS employees, and
expressed his hope that the USPS will be included in a new COVID relief package.

Senator Carper expressed his hope that bipartisan cooperation could help modernize and
invigorate the USPS. He spoke to the importance of communication and compromise, and
highlighted the fact that he was unsuccessful in his several efforts to contact the Postmaster
General.

Senator Peters offered a brief rebuttal to the Chairman’s claims of manufactured complaints to
the USPS, citing personal accounts he has received from his constituents. He then urged
transparency in the coming weeks.

Witnesses

● Louis DeJoy, Postmaster General of the United States Postal Service