USPS SERVES US Act

This bill amends title 39 of the United States Code to modernize Postal Service regulations, focusing on cost and efficiency reforms, service standards, rate-setting procedures, and customer advocacy. It modifies how the Postal Regulatory Commission sets rate caps, imposes sanctions for service failures, and improves processes for changes in service, complaints, and rate adjustments. The bill also establishes an Office of the Customer Advocate, requires a mail volume estimation model, and changes investment rules for the Postal Service Retiree Health Benefits Fund.

Sec. 2, Cost and efficiency reforms: The bill changes the annual rate increase limit for market-dominant products to the Consumer Price Index change minus 0.5 percent (or another percentage ordered by the Commission). The Commission must issue regulations within 60 days.

Sec. 3, Sanctions for certain failures of service: If the Postal Service fails to meet a service target for at least one year (not due to a natural disaster or outside event) and lacks a credible plan to fix it, the Commission may reduce the maximum rate increase for affected market-dominant products, considering user losses.

Sec. 4, Improving change-in-service procedures: The Commission must issue a decision (not just an advisory opinion) on proposed changes. If a plan implies a change without explicitly stating it, the Commission can order the Postal Service to explain; if insufficient, the Postal Service must justify the change in a hearing. The Governors can accept or reject the decision.

Sec. 5, One rate increase annually: Rates for market-dominant products may not change more than once every 12 months.

Sec. 6, Limit on underwater surcharges: The Commission may allow rate increases above the annual cap for a non-compensatory class (where costs exceed revenue) only if the cost change per piece does not exceed the cap, the Postal Service met all service targets in the prior year, and those targets were not reduced from the year before.

Sec. 7, Case-specific objectives: The objectives for rate-setting must be applied to each class or type of mail service and product, and also when evaluating compliance with the chapter and regulations.

Sec. 8, Retained earnings from cost savings: Retained earnings referenced in the rate-setting factors are limited to those resulting from efficiency improvements or cost reductions only.

Sec. 9, Office of the Customer Advocate: The Commission must establish an Office of the Customer Advocate to represent the general public in Commission proceedings. The Office can conduct research, consult outside groups, and has autonomy; employees cannot be retaliated against for their representation.

Sec. 10, Complaint process improvement: The Commission must begin proceedings on complaints within specific timeframes (e.g., 45 days) unless a motion to dismiss is filed within 25 days. If the Commission finds no material issues, it can dismiss the complaint within 45 days. The Commission can also order reimbursement for unreasonable delay.

Sec. 11, Reimbursement of unlawful rates; penalty for unreasonable delay: If a rate is found unlawful, the Commission must reduce future price increase authority for that product and its class until foregone revenue equals the excess collected. For unreasonable delay in a complaint proceeding, the Commission may further reduce price increase authority.

Sec. 12, Mail volume system objective: A new objective is added to the rate-setting factors: to maintain and, to the extent practicable, increase the volume of market-dominant mail, considering total contribution to institutional costs.

Sec. 13, New product definition criteria: When defining market-dominant products, the Commission must consider the importance of certain rate-setting factors (paragraphs (7), (8), and (11) of section 3622(c)).

Sec. 14, Mail volume estimation model: Within 120 days, the Commission must develop a model for estimating postal service demand, without using Postal Service models, and with public comment. It may hire experts and issue regulations.

Sec. 15, Investment of the Postal Service Retiree Health Benefits Funds: The Secretary of the Treasury must invest 25% (or up to 30% after 5 years) of the Fund in index funds modeled after Thrift Savings Plan funds, using professional managers, and consult with a new Postal Service Retiree Health Benefits Fund Investment Committee. Annual audits and reports to Congress are required.