Biden to nominate former Labor secretary to US Postal board

By David Shepardson

WASHINGTON (Reuters) - President Joe Biden said Thursday he will nominate former Labor Secretary Marty Walsh to serve on the U.S. Postal Board of Governors after lawmakers had urged action.

Earlier this month, Reuters first reported more than 80 Democrats in the U.S. House of Representatives had written Biden urging him to nominate two candidates to open seats on the Postal board, complaining about slow deliveries and increased costs. Two seats became vacant in December.

Walsh stepped down as Biden's labor secretary last year when he was named executive director of the National Hockey League Players' Association.

More than 80 Democrats in the U.S. House of Representatives on Thursday urged Biden to nominate two candidates to open seats on the U.S. Postal Board of Governors, complaining about slow deliveries and increased costs.

The letter noted USPS has implemented five stamp price hikes since 2020, including the latest increase on Jan. 21 that boosted prices to 68 cents from 66 cents.

"The actions of current postal leadership are deeply concerning. Rather than exploring new sources of revenue, it has continued price increases to 'uncomfortable rates' around the country," it said, citing earlier comments on price hikes from Postmaster General Louis DeJoy.

USPS this month reported a $2.1 billion net loss in the three months ending Dec. 31 after a $6.5 billion net loss for the prior 12 months as first-class mail fell to the lowest volume since 1968.

In a Jan. 10 letter, DeJoy said the postal service must keep cutting costs or "we will run out of cash, therefore making our financial condition, again, a problem for the Congress to address."

USPS is in the middle of a 10-year restructuring plan that aims to eliminate $160 billion in predicted losses over the next decade. It is facing pushback from lawmakers in some on efforts to consolidate facilities

In April 2022, Biden signed legislation providing USPS with about $50 billion in financial relief over a decade.

First-class mail volume fell 6.1% in 2023 to 46 billion pieces and is down 53% since 2006.

(Reporting by David Shepardson, Editing by Franklin Paul and David Gregorio)