Postal Service, Treasury Reach Deal on $10 Billion Pandemic Relief Loan

July 30, 2020 by Dan McCue
Then-Elon Trustee Louis DeJoy was honored with Elon's 2017 Medal for Entrepreneurial Leadership in Elon. N.C. He is now U.S. Post Master General. (Kim Walker/Elon University via AP)

WASHINGTON – Nearly four months after Congress approved a $10 billion loan for the struggling U.S. Postal Service as part of the CARES Act, the service and the Treasury Department have struck a deal on the terms of the loan.

Postmaster General Louis DeJoy, who took office last month, announced the agreement in principle on Wednesday, and said he expects the parties to formally memorialize the agreement through loan documents in coming weeks.

“Access to an additional $10 billion in borrowing authority will delay the approaching liquidity crisis.” DeJoy said in a written statement. “The Postal Service, however, remains on an unsustainable path and we will continue to focus on improving operational efficiency and pursuing other reforms in order to put the Postal Service on a trajectory for long-term financial stability.”

Dejoy, a major donor to President Donald Trump, has been a lightning rod for controversy since taking control of the agency, criticized for plans to close post offices and eliminate overtime for hundreds of thousands of postal workers just as many states move to mail-in voting for the 2020 general election.

Sen Joe Manchin, D-W.Va., has been particularly vocal about reports of looming closures and service cuts in his state. 

“It’s just asinine to think that you can shut something down or throttle it back in terms of the pandemic when basically the lifeline for voting and democracy is going to be in the hands of the Postal Service,” Manchin said last week.

The Associated Press recently reported on an internal memo circulated within the Post Services that described the need for an “operational pivot” to make the cash-strapped agency financially stable.

The USPS Board of Governors has already given its unanimous approval to the deal.

The board will hold its next public meeting Aug. 7.

In The News

GOP Candidate Clings to 8-vote Lead in US House Race in Iowa
State News
GOP Candidate Clings to 8-vote Lead in US House Race in Iowa

IOWA CITY, Iowa (AP) — A Republican candidate saw her vote lead dwindle to single digits Wednesday in Iowa’s 2nd Congressional District as a dramatic recount moved toward a conclusion in a race that will help determine the size of Democrats’ majority in the House of... Read More

They're Baaack: Trump and Allies Still Refuse Election Loss
2020 Elections
They're Baaack: Trump and Allies Still Refuse Election Loss

WASHINGTON (AP) — Monday seemed like the end of President Donald Trump's relentless challenges to the election, after the federal government acknowledged President-elect Joe Biden was the “apparent winner” and Trump cleared the way for cooperation on a transition of power. But his baseless claims have... Read More

Sorry, Grinch. Virus Won't Stop NORAD from Tracking Santa
In The News
Sorry, Grinch. Virus Won't Stop NORAD from Tracking Santa

WASHINGTON (AP) — Children of the world can rest easy. The global pandemic won't stop them from tracking Santa Claus' progress as he delivers gifts around the globe on Christmas Eve. The North American Aerospace Defense Command has announced that NORAD will track Santa on Dec.... Read More

High Court Blocks NY Coronavirus Limits on Houses of Worship
Supreme Court
High Court Blocks NY Coronavirus Limits on Houses of Worship

WASHINGTON (AP) — As coronavirus cases surge again nationwide the Supreme Court late Wednesday barred New York from enforcing certain limits on attendance at churches and synagogues in areas designated as hard hit by the virus. The justices split 5-4 with new Justice Amy Coney Barrett in the... Read More

Biden Seeks Unity as Trump Stokes Fading Embers of Campaign
Political News
Biden Seeks Unity as Trump Stokes Fading Embers of Campaign

WILMINGTON, Del. (AP) — On a day of grace and grievance, President-elect Joe Biden summoned Americans to join in common purpose against the coronavirus pandemic and their political divisions while the man he will replace stoked the fading embers of his campaign to “turn the election... Read More

Black Friday Offers Beacon of Hope to Struggling Stores
Economy
Black Friday Offers Beacon of Hope to Struggling Stores

NEW YORK (AP) — After months of slumping sales and businesses toppling into bankruptcy, Black Friday is offering a small beacon of hope. In normal times, Black Friday is the busiest shopping day of the year, drawing millions of shoppers eager to get started on their... Read More

News From The Well
scroll top