Political Commentary and Analysis

The Senate has signed off on a sweeping retooling of the United States Postal Service (USPS). On Tuesday, 79 across-the-aisle yeas approved the $107 billion Postal Service Reform Act of 2022 – providing the cash necessary for the agency to modernize its service and make it more efficient for Americans.

The USPS could certainly use the money. From 2007 to 2020, it recorded losses of more than $80 billion and produced over $188 billion in unfunded liabilities and debt. From October 2021, to December 2021, it lost $1.3 billion.

President Joe Biden had indicated earlier that he would sign the legislation once it gets to his desk. The House has already approved the bill.

The bipartisanship support that the bill received reflects the agency's importance to the public. For years, Republicans and Democrats have squabbled over upgrading the USPS. Republicans postured the agency as being incompetent and said supporting it was just throwing good money away.

When the COVID-19 pandemic took over, the agency experienced some hiccups, like forcing the Veterans Administration (VA) to find alternative ways to deliver medications. However, Democrats like Virginia's Jerry Connolly remained on postal workers' side, lauding mail workers as everyday heroes and nothing that Americans support the Postal Service.

“After more than a decade of hard work and negotiations, the Postal Service Reform Act is finally on its way to the president's desk," Connolly commented on the Senate's passage. "This will save the Post Office from financial ruin, and ensure our mail is delivered for decades to come."

The postal union calls the legislation “critical” for consumers

The American Postal Workers Union (APWU) praised the legislation. On top of maximizing its members' participation in Medicare, the group said the legislation will also ensure that Americans can count on deliveries six days per week.

The group said it will also ensure that letter mail, flats, and packages remain combined into one postal network while helping meet the demand of package growth. It also gives the agency the approval to contract with local, state, and indigenous governments to offer non-mail services like fishing and hunting licenses.

“It is not an exaggeration to say that this bill is one of the most critical pieces of postal legislation in modern history — the struggle to win Postal Reform has been 15 years in the making,” said the American Postal Workers Union’s (APWU) Legislative and Political Director, Judy Beard.

The White House has announced that America’s crumbling roads and bridges are up next in its infrastructure agenda. The Biden team says its Bipartisan Infrastructure Law will not only rebuild deteriorating roads and bridges, but it will also replace lead pipes and improve the quality of the internet to “every family in America.”

If the administration’s recipe goes according to plan, the offshoot of the infrastructure improvements will create good-paying jobs and bolster the country’s manufacturing and supply chains. However, the plan doesn’t stop there. The White House also pledged that 40% of its investment in climate and clean energy will directly benefit disadvantaged communities.

“With over 44,000 bridges in poor condition around our country, today’s announcement of $27.5 billion in long-overdue funding is great news for rural and urban communities alike,” Peter DeFazio (D-OR), Chair of the House Committee on Transportation and Infrastructure, said in a statement emailed to ConsumerAffairs. 

“These investments will create good-paying jobs in all 50 states, DC, and the territories. Bridges connect communities and are critical to everyday life—helping Americans get to work, visit family, or explore our great country. Thanks to President Biden and Congressional Democrats, the Bipartisan Infrastructure Law is delivering for the American people and helping ensure they succeed in the 21st century economy.”

Clean energy, cheaper internet, and more

Here’s a quick look at what the White House hopes can be completed in its plan:

Bridge repair: The government is investing $27 billion over the next five years in funding to replace, repair, and rehabilitate bridges across the country to all 50 states, as well as Washington D.C., Puerto Rico, and Tribal governments.

EV charging action plan: On top of what General Motors and others are doing to spread the availability of charging stations for electric vehicles, the President’s new goal is to build a national network of 500,000 electric vehicle chargers.

Clean energy: Biden said the Department of Energy is establishing a new Office of Clean Energy Demonstrations, which will oversee $20 billion in funding to scale up clean energy, create new, good-paying jobs for American families and workers, and reduce pollution.

Clean water: Also in the works is a lead pipe and paint action plan to replace all of the nation’s lead pipes in the next decade while expanding access to clean drinking water.

Cheaper and wider internet: President Biden's infrastructure law includes what he terms a historic investment of $65 billion that should help close the digital divide and “ensure that all Americans have access to reliable, affordable, high-speed broadband.”

The Federal Communications Commission (FCC) is coming to the table with its own plan to provide broadband subsidies of up to $30/month for low-income households and up to $100 towards the purchase of a computer.

President Joe Biden has signed an executive order that’s intended to reduce the complexity of government services, such as the processing of benefits and passports. He stated that the U.S. needs to design and deliver services in a way that every American can navigate easily. 

“We must use technology to modernize Government and implement services that are simple to use, accessible, equitable, protective, transparent, and responsive for all people of the United States,” he said in an announcement.

Improving customer service and service delivery

When the baseline for interacting with Americans was set in 1993, it required agencies that provide significant services directly to the public to gather feedback from consumers and establish standards that meet or exceed those provided by the private sector. 

Under the new order, government agencies will be tasked with improving service delivery and customer experience, making them “fundamental priorities.” One of the major service delivery items that the Biden administration is focusing on involves passports.

As any American who has tried to apply for or renew a passport knows, the process can take time and require a lot of jumping through hoops. To change that perception, Biden is asking the Secretary of State to “design and deliver a new online passport renewal experience that does not require any physical documents to be mailed.”

Digitize, digitize, digitize

Biden hammered home the importance of digitizing government forms and services. He specifically pointed out that the Veterans Administration needs to provide digital services through a single, integrated, and equitable digital platform on VA.gov and the VA mobile app. 

He also asked for a complete makeover of the USA.gov website so that it can be a centralized, digital “Federal Front Door” that citizens can use to access all government benefits, services, and programs. 

“Every interaction between the Federal Government and the public, whether it involves renewing a passport or calling for a status update on a farm loan application, should be seen as an opportunity for the Government to save an individual’s time (and thus reduce “time taxes”) and to deliver the level of service that the public expects and deserves,” Biden said.

“By demonstrating that its processes are effective and efficient, in addition to being fair, protective of privacy interests, and transparent, the Federal Government can build public trust.”

After months of wrangling and deal-cutting in Congress, President Biden has finally gotten to put his signature on one of his loftiest agenda items -- a $1.2 trillion infrastructure package. 

In the administration’s view, the law delivers on a long-overdue promise. It includes everything from rebuilding the country’s infrastructure to creating better jobs for millions of Americans. Below are some of the items that are included in the legislation.

What Americans can expect from the new law

A revamped infrastructure: When it comes to infrastructure, Biden says “things are going to turn around in a big way.” He said 2022 will be the first year in two decades that the U.S. infrastructure investment will grow faster than China’s. 

“We’ll once again have the best roads, bridges, ports, and airports over the next decade. And we’ll lead the world into the 21st century with modern cars and trucks and transit systems,” the President stated. 

The biggest overhaul in that laundry list will be roads and bridges. Biden said the rebuilding of those two items will be the most significant investment the U.S. has made in the past 70 years. Right behind that is the most significant investment in passenger rail the country has put forth in the last 50 years, as well as the most aggressive effort ever put in public transit. 

Jobs: With the investment in infrastructure also comes the need for workers to make that happen -- plumbers to replace all the lead pipes in the country, people to install broadband lines, workers to install electric vehicle charging stations. Biden says it will take tens of thousands of workers to export clean energy technologies to the rest of the world.

“This law delivers on that long-overdue promise, in my view. It creates better jobs for millions of Americans. And no one — no one earning less than $400,000 a year will pay a single penny in federal taxes because of it.”

Broadband: The new law intends to make high-speed internet affordable and available everywhere while boosting competition and creating more price transparency. That’s likely to be a hit with many consumers who are unhappy with their internet and a nation of parents who wrestled with getting their children set up for remote learning during the pandemic.

“Folks, as we saw with remote learning, remote working during the pandemic, access to high-speed Internet is essential… No parent should have to sit in a parking lot at a fast-food restaurant again just so their child can use the internet to do their homework. That’s over,” Biden said at his press conference announcing the passage of the law.

Electric vehicles: From the moment Biden entered the White House, he’s been championing electric vehicles -- everything from changing out the federal government’s fleet to all-electric vehicles to offering top-dollar incentives to consumers who buy one. Now, he has a real chance to advance all those hopes and says Americans can expect a “true” countrywide network of more than a half-million charging stations for electric vehicles.

“It is also going to make it possible for Americans to get off the sidelines and into the game of manufacturing solar panels, wind turbines, batteries to store energy and power for electric vehicles, including electric school buses, which will mean millions of children will no longer inhale the dangerous diesel fumes that come out of the buses,” Biden stated.

After two presidents at the Federal Reserve banks crossed the line in trades they made, senior officials have put new restrictions on investments in place to prevent an overreach from happening again.

The new rules forbid both policymakers and senior staff members at the Fed from buying individual stocks in active trading. They are also prohibited from holding market products like individual bonds or derivatives -- in fact, they can no longer hold any investment that is secured and backed by the government.

What’s left isn’t much, but it’ll have to do. Starting immediately, the only investments Fed officials can make are to purchase diversified investment vehicles, like mutual funds.

"These tough new rules raise the bar high in order to assure the public we serve that all of our senior officials maintain a single-minded focus on the public mission of the Federal Reserve," said Federal Reserve Board Chair Jerome H. Powell.

Who crossed the line?

NPR reports that the two Fed bank presidents who crossed the line were Robert Kaplan and Eric Rosengren. Kaplan, who works at the Dallas Federal Reserve Bank, bought or sold stock worth more than a million dollars in 2020 in nearly two dozen companies, including Amazon and Delta Air Lines. Rosengren, who heads the Boston Federal Reserve Bank, bought or sold securities tied to real estate and made investments worth tens to hundreds of thousands of dollars in AT&T, Chevron, and Pfizer.

Those two were certainly in the right place at the right time, as the Fed was flooding the market with trillions of dollars. Both men tried to justify their trading by claiming they were in compliance with existing ethics rules. However, Kaplan and Rosengren won’t be putting themselves in danger anymore -- both have since announced their retirements.

Guarding against conflicts of interest

Powell said the Fed’s primary reason for drawing the new boundaries is simple: to help guard against even the appearance of any conflict of interest in the timing of investment decisions.

Going forward, policymakers and senior staff are obliged to provide 45 days advance notice for almost any financial investment purchase or sale they make. Plus, they have to hold on to those investments for at least one year. Additionally, no purchases or sales will be allowed during periods of heightened financial market stress. 

According to the Office of Financial Research, the U.S.’ financial stress level is in a safe zone, with the most recent stress spikes coming in March 2020, and April 2020, as the COVID-19 pandemic started to flare.

Late Thursday, President Joe Biden signed Congress' 11th-hour funding bill to prevent a nationwide government shutdown. The move gives the government access to enough funding to last through the weekend.

Talk about close calls -- government funding was set to expire at midnight. But Democrats, who control both the House and Senate, were adamant that the government would remain open. And, thanks to a sprinkling of bi-partisanship, the bill passed the House and Senate.

Earlier in the week, Treasury Secretary Janet Yellen warned Congress that the government needed to deal with the debt ceiling. She said if Congress failed to act and find a way to keep federal funding alive, a monetary default would likely be devastating.

Disaster and COVID-19 relief extended

H.R. 5305, the “Extending Government Funding and Delivering Emergency Assistance Act,” not only provides fiscal year 2022 appropriations to federal agencies through December 3; it also allows for the continuation and appropriation of certain projects such as disaster relief. 

Through an amendment crafted by Vermont senator Patrick Leahy, the bill keeps the National Flood Insurance Program's ability to sell new policies and renew existing ones afloat by providing $28.6 billion to address natural disasters like Hurricane Ida. Additionally, it provides assistance to support Afghan refugees and America’s Afghan partners.

“It meets critical and urgent needs of the nation, including disaster relief for both red and blue states hit hard by Hurricane Ida and other devastating natural disasters, and funding to help us resettle Afghan allies in the United States following the end of the 20-year war in Afghanistan,” Biden said in announcing the bill’s passage “will also keep up our fight against COVID-19 and—on this International Recovery Day—it will continue our battle against the opioid crisis.”

The Senate on Tuesday passed a $1.2 trillion bipartisan infrastructure package aimed at addressing the maintenance of roads, bridges, and broadband internet access. 

The legislation, called the Infrastructure Investment and Jobs Act, includes $550 billion in new funding over the next five years -- $110 billion is set to go toward roads, bridges and other projects; $65 billion will go toward broadband, $66 billion will be spent on passenger and freight rail, $55 billion will support water infrastructure, $39.2 billion will be set aside for public transit, $47.2 billion will go toward resiliency purposes, $7.5 billion will fund electric vehicle infrastructure, and $21 billion will address pollution. President Biden announced the successful vote on Twitter. 

"Big news, folks," Biden wrote. "The Bipartisan Infrastructure Deal has officially passed the Senate. I hope Congress will send it to my desk as soon as possible so we can continue our work of building back better."

Democrats pushing a paired deal

The measure was negotiated by a group of 22 bipartisan lawmakers and made it through the Senate in a 69-30 vote. Nineteen Republicans joined all 50 Democrats, but some members of the GOP expressed their opposition. 

“This isn’t exactly the bill I would have written on my own, in my office, and 99 of my colleagues would say the same. This is a compromise product crafted by colleagues with big, principled differences in a Senate with the narrowest possible split,” Senate Minority Leader Mitch McConnell (R-Ky.) said on the floor Saturday. 

The bill isn’t likely to be taken up by the House of Representatives until the fall. The House is out for recess until September 20. House Speaker Nancy Pelosi (D-Calif.) has indicated that she will not take up the infrastructure bill until Democrats’ separate proposal to expand the social safety net is passed. Senate Majority Leader Chuck Schumer (D-NY) has expressed optimism that the two-track plan will work. 

Schumer stated that he intends to move quickly on the resolution, and he noted that the reconciliation process was used earlier this year to pass the COVID-19 relief package despite unanimous Republican opposition.

"Today the Senate takes a decades overdue step to revitalize America's infrastructure and give our workers, our businesses, our economy the tools to succeed in the 21st century," Schumer said. "Of course, we Democrats believe we need to do much more. We are moving on to a second track, which will make generational transformation."

President Biden is set to sign an executive order on Friday that will impose new rules on big tech companies and internet service providers. The changes outlined in the order should ultimately help to promote competition and lower prices for consumers. 

Under the order, Biden will encourage the Federal Communications Commission (FCC) to reintroduce a “broadband nutrition label” to provide consumers with greater price transparency. 

The label will provide “basic information about the internet service offered so people can compare options,” the White House said in a fact sheet. “The Trump Administration FCC abandoned those plans.” 

The FCC will be urged to restrict early termination fees and to prohibit exclusivity arrangements, which force apartment buildings and rental units to use only one ISP. Additionally, the order will direct the FCC to restore the net neutrality rules that were undone in 2017, requiring broadband companies to treat all internet services equally. 

Targeting Big Tech 

The mergers of major internet platforms like Amazon and Facebook will also be scrutinized more carefully. 

The Biden administration said it will be paying “particular attention to the acquisition of nascent competitors, serial mergers, the accumulation of data, competition by ‘free’ products, and the effect on user privacy.” This is the type of deal that many believe Facebook exemplified when it bought Instagram and WhatsApp. 

The order also zeroes in on companies’ collection and use of consumer data and how it affects competition. 

"For decades, corporate consolidation has been accelerating. In over 75% of US industries, a smaller number of large companies now control more of the business than they did 20 years ago. This is true across health care, financial services, agriculture and more," the White House said in a statement.

"That lack of competition drives up prices for consumers. As fewer large players have controlled more of the market, mark-ups (charges over cost) have tripled. Families are paying higher prices for necessities -- things like prescription drugs, hearing aids, and internet service."

The White House said higher prices and lower wages caused by lack of competition are now estimated to cost the median American household $5,000 per year.

Other elements of the order

Under the order, the Federal Trade Commission (FTC) will be tasked with creating new rules on data collection. The agency will also be asked to clamp down on unfair competition in online marketplaces. 

The Biden administration also wants consumers to have the right to repair their own devices. The order encourages the agency to “limit powerful equipment manufacturers from restricting people’s ability to use independent repair shops or do DIY repairs, such as when tractor companies block farmers from repairing their own tractors.” 

Biden’s order also asks the Department of Health and Human Services to work up a plan to lower the cost of prescription drugs and prevent price gouging. It also pushes for states to be allowed to safely import prescription drugs from Canada, where medication costs are lower, and to allow for hearing aids to be sold over the counter. 

President Joe Biden is set to sign a bill on Thursday that will establish June 19 as Juneteenth National Independence Day, officially making it the eleventh federal holiday observed by the U.S. government. It’s the first federal holiday to be established since Martin Luther King Jr. Day was accepted in 1983.

Juneteenth celebrates the day in 1865 when Black slaves in Galveston, Texas, learned that they were free under the passing of the Emancipation Proclamation. The Juneteenth legislation passed by a unanimous vote in the Senate on Tuesday, and that was followed by another passing vote in the House of Representatives on Wednesday by a vote of 415 to 14. 

In 2020, a bill that attempted to establish Juneteenth as a federal holiday was blocked in Congress by Sen. Ron Johnson, who said its passage would cost U.S. taxpayers hundreds of millions of dollars. However, he put aside those objections this year after Sens. Ed Markey (D-Mass.), Tina Smith (D-Minn.), Cory Booker (D-N.J.), John Cornyn (R-Texas), and Rep. Sheila Jackson Lee (D-Texas) reintroduced the bill in February.

“Although I strongly support celebrating Emancipation, I objected to the cost and lack of debate," Johnson said in a statement. "While it still seems strange that having taxpayers provide federal employees paid time off is now required to celebrate the end of slavery, it is clear that there is no appetite in Congress to further discuss the matter.”

A momentous day

Despite Johnson’s objections, many lawmakers celebrated the passage of the bill and described it as an important step in U.S. history. 

"Juneteenth commemorates the moment some of the last formerly enslaved people in the nation learned that they were free. Making Juneteenth a federal holiday is a major step forward to recognize the wrongs of the past. But we must continue to work to ensure equal justice and fulfill the promise of the Emancipation Proclamation and our Constitution,” said Senate Majority Leader Chuck Schumer in a statement.

“What I see here today is racial divide crumbling, being crushed this day under a momentous vote that brings together people who understand the value of freedom,” said Rep. Sheila Jackson Lee ahead of Biden’s signature.

On Tuesday, the Senate unanimously passed a resolution establishing June 19 as Juneteenth National Independence Day, a holiday commemorating the day in 1865 that slaves in Galveston, Texas, learned of their freedom. 

If the legislation passes the House, it will be sent to President Biden’s desk and will likely be designated as a federal holiday. House Republican Leader Kevin McCarthy has said he will support the bill when it comes to the floor, and Biden has previously said he recognizes the significance of commemorating Juneteenth. 

Sens. Ed Markey (D-Mass.), Tina Smith (D-Minn.), Cory Booker (D-N.J.), John Cornyn (R-Texas), and Rep. Sheila Jackson Lee (D-Texas) reintroduced the bill in February. 

The legislation encountered opposition in 2020 when Wisconsin Republican Sen. Ron Johnson blocked it. Johnson argued that establishing it as a day off for federal employees would cost U.S. taxpayers hundreds of millions of dollars. This week, he dropped his objection but stood by his concerns. 

"Although I strongly support celebrating Emancipation, I objected to the cost and lack of debate," he said in a statement. "While it still seems strange that having taxpayers provide federal employees paid time off is now required to celebrate the end of slavery, it is clear that there is no appetite in Congress to further discuss the matter."

Acknowledging the wrong that was done

If passed by the House and signed by President Biden, the federal holiday would mark the day -- June 19, 1865 -- that Major General Gordon Granger of the Union Army landed in Galveston, Texas, and delivered the news that enslaved people were free under the Emancipation Proclamation.

"Juneteenth commemorates the moment some of the last formerly enslaved people in the nation learned that they were free," Senate Majority Leader Chuck Schumer said in a statement. "Making Juneteenth a federal holiday is a major step forward to recognize the wrongs of the past. But we must continue to work to ensure equal justice and fulfill the promise of the Emancipation Proclamation and our Constitution."

In a statement, Sen. Markey said the U.S. has "failed to acknowledge, address, and come to grips with our nation’s original sin of slavery."

"Today’s Senate passage of our legislation to commemorate Juneteenth as a federal holiday will address this long-ignored gap in our history, recognize the wrong that was done, acknowledge the pain and suffering of generations of slaves and their descendants, and finally celebrate their freedom," he stated.

President Joe Biden has finished drafting his annual budget proposal, and it appears to lean heavily into investments in domestic spending and public support programs. 

The Office of Management and Budget sent the proposal to congressional lawmakers on Friday. The 2022 budget plan calls for $1.5 trillion in spending, with Biden requesting discretionary funding to support K-12 education, medical research, housing, and civil rights, among other priorities. 

“The upcoming appropriations process is another important opportunity to continue laying a stronger foundation for the future and reversing a legacy of chronic disinvestment in crucial priorities,” said OMB Acting Director Shalanda Young. “Together, America has a chance not simply to go back to the way things were before the COVID-19 pandemic and economic downturn struck, but to begin building a better, stronger, more secure, more inclusive America.”

The discretionary funding to-do list

Below is a list of several of the priorities that the Biden administration is focusing on when it comes to discretionary funding in 2022:

Investing in High-Poverty Schools: The Biden administration wants to invest $36.5 billion in Title I grants, an increase of $20 billion from 2021. The money is meant to address funding disparities between economically diverse communities and provide more support to low-income areas.

Fighting the Opioid Epidemic: The opioid epidemic has been raging in the U.S. for years. To help put it to an end, the Biden team wants to invest $10.7 billion to support research, treatment, and recovery support programs within at-risk communities.

Tackling Climate Change: To address the growing threat of climate change, the Biden administration is looking to increase investment by $14 billion in 2022 to go towards climate change initiatives. This includes helping developing countries reduce emissions to improve global climate health. 

Addressing Homelessness: The discretionary spending plan calls for $30.4 billion for Housing Choice Vouchers so that 200,000 more families can obtain “vital assistance” for housing. Another $500 million will be added to the American Rescue Plan to prevent homelessness in 100,000 more households.

Reinvigorating Civil Rights Enforcement: The Biden administration plans to invest $209 million to help protect marginalized communities. Some of the initiatives that money would go towards include police reform, prosecution of hate crimes, voting rights enforcement, and mediation and conciliation services for community conflicts related to discriminatory practices, among other related activities. The funding would also create more civil rights offices in federal agencies.

You can read a detailed breakdown of the White House’s proposed discretionary budget here.