FY2024 U.S. Postal Service Appropriations
October 19, 2023
FY2024 U.S. Postal Service Appropriations
Overview
General Government (FSGG) FY2024 Appropriations:
The U.S. Postal Service (USPS) generates nearly all of its
Overview.)
funding—about $78.5 billion annually according to the
USPS’s most recent financial report—by charging users of
Summary of FY2024 Budget Request and
the mail for the costs of the services it provides. Congress,
Appropriations
however, does provide an annual appropriation—about $50
million in FY2023—to compensate the USPS for revenue it
Postal Service Fund
forgoes in providing free mailing privileges to the blind and
• For FY2024, the President’s budget includes a request
overseas voters. In addition, the annual appropriation
of $75.5 million for the Postal Service Fund to
compensates the USPS for debt it accumulated in the 1990s
compensate for revenue forgone in providing free and
while providing postal services at below-cost rates to non-
reduced mail. This is $25.28 million more than the
profit organizations. Historically, the appropriation has not
FY2023 request and FY2023 enacted appropriations.
always compensated the USPS for all of the revenue
forgone.
• Both the President’s budget and the USPS FY2024
Congressional Budget Submission request an additional
Congress authorized appropriations for revenue forgone in
$307.224 million to compensate for previous years’
the Revenue Forgone Reform Act of 1993 (RFRA; P.L.
revenue forgone that was not appropriated or made
103-123, Title VII). Additionally, under the Postal
available to the Postal Service.
Accountability and Enhancement Act (PAEA; P.L. 109-
435), funding for both the USPS Office of Inspector
• Additionally, the President’s budget requests $157.575
General (USPSOIG) and the Postal Regulatory Commission
million to reimburse USPS for reduced cost mail service
(PRC) must be provided out of the Postal Service Fund.
between the United States and the Freely Associated
States (i.e., Republic of the Marshall Islands, Federated
The Postal Service Fund is a revolving fund that
States of Micronesia, and Republic of Palau). Under the
consists largely of revenues generated from the sale
Compacts of Free Association, mail delivery between
of postal products and services. (39 U.S.C. §2003)
the United States and the Freely Associated States is
priced and treated as domestic rather than international
The PAEA requires that the USPSOIG must submit its
mail. (USPS, Domestic Mail Manual, Section 608.2.)
budget request directly to Congress and to the Office of
•
Management and Budget. The law further requires that the
H.R. 4664 would provide $35.4 million for the PSF,
USPSOIG’s budget be treated as a component of the
which is $14.83 million below the FY2023 enacted
USPS’s budget.
appropriation and $40.1 million below the amount
requested. S. 2309 would provide $50.3 million, which
The Postal Service Reform Act of 2022 (PSRA; P.L. 117-
maintains funding for the PSF at the same level as
108) amended 39 U.S.C. §2003(e), creating permanent
FY2023, but is $25.28 million below the amount
authority for the Postal Service Fund to be used for
requested.
payment of expenses incurred by the PRC, thereby
U.S. Postal Service Office of Inspector General
removing the PRC from the annual appropriations process.
Under the PSRA, the PRC submits its annual budget to
• For FY2024, the USPSOIG and the President request
USPS for approval by the Postal Governors and its
$290.579 million be transferred from the Postal Service
expenses are paid out of the Postal Service Fund. The
Fund for the USPSOIG. This represents an increase of
PRC’s budget, like the budgets of other independent
approximately $19.6 million over the FY2023 enacted
regulators, is treated separately from that of USPS.
appropriation.
USPS appropriations have generally been included in the
• H.R. 4664 would provide $274.467 million for the
annual Financial Services and General Government (FSGG)
USPSOIG (via transfer from the Postal Service Fund),
appropriations bill. For FY2024, this is H.R. 4664 and S.
which is about $3.5 million more than the FY2023
2309. (For more information, see CRS Report R47743,
enacted level, but about $16.1 million below the
Financial Services and General Government (FSGG)
requested amount. S. 2309 would provide $271 million,
FY2024 Appropriations: Overview, Financial Services and
which maintains funding for the PSF at the same level
https://crsreports.congress.gov
link to page 2 FY2024 U.S. Postal Service Appropriations
as FY2023, but is $19.6 million below the amount
Operations would also continue at the PRC, which is no
requested.
longer subject to annual appropriations. While USPS and
the PRC would continue operations, select activities of the
Postal Regulatory Commission
USPSOIG would cease during a lapse of appropriations.
• For FY2024, the PRC has requested $21 million to be
According to the latest USPSOIG shutdown plan, 522 of its
provided out of the Postal Service Fund. According to
967 employees would be retained in the event of a
the USPS FY2024 Congressional Budget Submission,
this is $2 million less than the PRC’s estimated
shutdown. Of the 522 employees that would be retained,
517 are deemed “necessary to protect life and property,”
obligations for FY2023.
while 5 are compensated by a resource other than annual
•
appropriations. To protect life and property, the OIG would
Pursuant to the PSRA, beginning in FY2023 the PRC is
retain 456 Special Agents. The remaining employees
no longer subject to annual appropriations. For this
include IT personnel, attorneys, data analysts, security,
reason, funding for the PRC is not included in H.R.
budget and accounting, and human resources. The plan
4664 or S. 2309.
notes that additional personnel may be called in for court
appearances or other emergencies (USPSOIG, U.S. Postal
Table 1 presents the FY2024 request, FY2023 enacted
Service OIG Shutdown Plan, September 28, 2023).
appropriations, and amount of the FY2024 appropriations in
the House and Senate bills for the USPS, USPSOIG, and,
FY2024 Continuing Appropriations:
where applicable, the PRC.
Funding for Postal Service Health
Benefits Program
Table 1. USPS Budget Request and Appropriations,
FY2024
On September 30, 2023, Congress passed the Continuing
Appropriations Act, 2024 and Other Extensions Act (H.R.
(millions of dol ars)
5860; P.L. 118-15), which provides continuing FY2024
FY2023
FY2024
H.R.
appropriations to federal agencies through November 17,
Agency
Enacted
Request
4664
S. 2309
2023. Section 126 of the act increases the rate of funding
for the Office of Personnel Management (OPM) to
Postal
50.3
75.5
35.4
50.3
approximately $219.1 million, which is about $28.3 million
Service Fund
above its FY2023 funding.
USPSOIG
271.0
290.6
274.5
271.0
The additional OPM funding is provided for the
PRC
—
21.0
—
—
implementation of the Postal Service Health Benefits
Program (PSHBP), a new health benefit program for
Sources: P.L. 117-328; H.Rept. 118-145; S.Rept. 118-61; USPS,
eligible postal employees and retirees. Under the PSRA,
FY2024 Congressional Budget Submission.
OPM is required to establish and administer the PSHBP.
Note: Pursuant to the PSRA, beginning in FY2023 the budget for the
In late 2024, postal employees and retirees will have the
PRC is consolidated with the PSF and is no longer subject to annual
opportunity to select plans under the PSHBP during Open
appropriations. The amount shown for the PRC under “Request”
Season. Coverage under the PSHBP will begin in January
reflects the amount approved by the Postal Governors and included
2025. Beginning in 2025, postal employees and retirees
in USPS’s budget submission to Congress.
who are eligible for plans under PSHBP will no longer be
Postal Operations in the Event of a
permitted to enroll in plans under the Federal Employees
Lapse of Appropriations
Health Benefits (FEHB) Program. In addition, postal
retirees and eligible family members will be required to
The Postal Reorganization Act of 1970 (PRA; P.L. 91-375)
enroll in Medicare Part B to obtain coverage under PSHBP.
established USPS as “an independent establishment of the
executive branch,” self-funded by revenue from the sale of
postal products and services. During a lapse of
appropriations, USPS would continue its operations, since it
Michelle D. Christensen, Analyst in Government
is funded almost entirely by revenue from the sale of postal
products and services.
Organization and Management
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FY2024 U.S. Postal Service Appropriations
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