COVID bill spends $ 10 billion on ailing postal services

The latest deal for coronavirus relief, which Congress plans to approve later today, will bring in $ 10 billion to help the ailing US Postal Service, legislative aides familiar with the text tell Axios.

Why it matters: This new round of funding comes as the postal service struggles to operate amid the pandemic, can withstand a surge in Christmas shipping, and are ready for a busy January, when Americans typically receive documents used for their tax returns.

  • Another round of incentive vouchers, this time at $ 600 per adult and child, is also expected to ship before the end of this year.

Driving the news: The new bill will turn $ 10 billion from the government’s CARES Act loan program into direct funding for the USPS in March. The money will be used for operational and other increased costs as a result of the COVID-19 pandemic.

  • Democrats portrayed the outcome as a victory, as it rescheduled money that the government had threatened to eliminate.

The background: The postal service has suffered increasing losses in recent months and it was expected to run out as early as October 1.

  • President Trump has also waged open war on the postal service, criticizing its deals with express shippers such as Amazon and installing a longtime Republican donor, Louis DeJoy, as postmaster general.

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