Government affairs

Today, Sens. Sanders (I-VT) and Gillibrand (D-NY) joined forces to introduce a bill to require the Postal Service to expand its banking services to meet the needs of unbanked or underbanked communities nationwide.

S.4614 would allow the Postal Service to offer basic checking accounts for deposits, cashing and paying bills, as well as savings accounts that partner with Supplemental Nutrition Assistance Program (SNAP) and Earned Income Tax Credit (EITC) benefits. Under the legislation, neither the checking or savings accounts can exceed $20,000. The bill would also enable the Postal Service to provide and service small loans, debit cards, ATM machines and domestic and international wire transfer services.

Sanders and Gillibrand’s bill is expected to raise $9 billion in revenue each year and would be backed by the Federal Reserve. Unlike previous bills introduced by each Senator, this legislation includes specific language that would prevent the Postal Service from outsourcing this work to third parties, meaning all accounts would be serviced directly by Postal Service employees.

Last Congress, both senators introduced separate postal banking legislation. Neither measure received action in the Senate. This bill is not likely to receive any attention either.

The issue of Postal Banking has been a contentious one over the last several years. Wall Street and banks are generally opposed to allowing the Postal Service to provide banking services. In fact, in the 115th Congress, NALC successfully beat back an amendment in the House that would have prevented the Postal Service from providing current financial services or exploring new ones. While we were successful in that effort, it remains clear that the current legislative environment does not support enhanced banking efforts.  

NALC appreciates the work of Senators Sanders and Gillibrand. We fully support the concept of USPS banking services and look forward to working with them when the legislative landscape is conducive to successful passage of such a bill. In the meantime, we will continue our focus on pandemic relief and repeal of the prefunding mandate.