After years of broader postal reform bills failing to pass, the House passed a measure Wednesday to repeal the Postal Service’s mandate to pre-fund health care benefits for future retirees.

The USPS Fairness Act, introduced last May by House Transportation and Infrastructure Committee Chair Peter DeFazio (D-Ore.), would undo the pre-funding requirement at the heart of the 2006 Postal Accountability and Enhancement Act that has accelerated the Postal Service’s financial losses.

“The unreasonable pre-funding mandate has threatened the survival of the USPS and placed its vital services for the millions who rely on it at risk,” DeFazio said following the 309-106 floor vote.

If passed by the Senate and signed by the president, the bill would move the Postal Service to a pay-as-you-go model that’s similar to how other federal agencies and businesses fund their retirement benefits. USPS would switch over to the pay-as-you-go-model after using the money saved in its Retiree Health Benefits Fund. Read More