The U.S. Postal Service recently defaulted on a $5 billion payment to the U.S. Treasury towards future Postal Service retiree health benefits. Husch Blackwell Postal Service Contracting
Partner and former Postal Service attorney David Hendel
spoke on Federal News Radio's
In Depth show about the impact the default may have on the agency’s contractors. “The negative publicity that is out there is certainly causing some financial institutions to question: should they be lending money to contractors whose main source of business is the postal service?” Hendel said. However, Hendel stated, the Postal Service is not to blame, as it is waiting for Congress to approve a variety of measures to help cut service costs, such as eliminating Saturday mail delivery and closing smaller post offices. Hendel concluded by saying the Postal Service’s budget struggle is solvable. “The Postal Service is still vital to the American public; $1 trillion worth of transactions go through it, so it’s a vital part of our economy,” Hendel said.