HR 5530 — Postal Contracting Financial Accountability Act

Bill Text

• Introduced Introduced in House Current html September 19, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill adds provisions allowing contractors to continue operating contract postal units that the Postal Service plans to close under certain conditions.

• 39 U.S.C. § 404

  (f)(1) If the Postal Service makes a determination to terminate or not renew a contract postal unit operation agreement with a covered contractor for a contract postal unit, the covered contractor may, in the sole discretion of the covered contractor, elect to have such contract postal unit operation agreement remain in effect in accordance with this subsection if-- (A) such determination to terminate or not renew the contract postal unit operation agreement is not primarily or entirely based on the covered contractor breaching such contract postal unit operation agreement; (B) the Postal Service has not entered into another contract postal unit operation agreement with the covered contractor for the contract postal unit; (C) the covered contractor submits to the Postal Service a notice of such election by the covered contractor; and (D) the covered contractor agrees to amend the terms and conditions of the contract postal unit operation agreement in accordance with this subsection.

  This addition allows contractors to keep operating their postal units even if the Postal Service intends to terminate their agreements, provided certain conditions are met.

• 39 U.S.C. § 404

  (2)(A) Except as provided by subparagraph (B), a contract postal unit operation agreement that remains in effect pursuant to an election by a covered contractor under paragraph (1) shall have the same terms and conditions as the terms and conditions in effect immediately prior to the date on which, but for such election, the contract postal unit operation agreement would have terminated or ended, and such terms and conditions shall apply in the same manner as such terms and conditions applied immediately prior to such date, except that, after such date, the contract postal unit operation agreement shall-- (i) not obligate the Postal Service to make any payment to the covered contractor; and (ii) remain in effect until-- (I) the Postal Service terminates the contract postal unit operation agreement for a breach of the contract postal unit operation agreement by the covered contractor; or (II) the covered contractor-- (aa) terminates the contract postal unit operation agreement; or (bb) permanently ceases to operate the contract postal unit with respect to which the contract postal unit operation agreement applies.

  This permits specific conditions under which the contractual relationship may continue, defining the terms for maintaining operations without payment obligations by the Postal Service.

• 39 U.S.C. § 404

  (B)(i) Notwithstanding subparagraph (A), a contract postal unit operation agreement that remains in effect pursuant to an election by a covered contractor under paragraph (1) shall, if determined appropriate by the Postmaster General, require the Postal Service to make payments to the covered contractor with respect to the operation of the contract postal unit with respect to which the contract postal unit operation agreement applies after the date on which, but for such election, the contract postal unit operation agreement would have terminated or ended. (ii) The Postmaster General shall determine terms and conditions of any payments the Postal Service is required to make to a covered contractor under a contract postal unit operation agreement pursuant to clause (i).

  Allows for the possibility of the Postal Service making payments to contractors for continued operation under certain circumstances.

• 39 U.S.C. § 404

  (3) If a covered contractor makes the election under paragraph (1) with respect to a contract postal unit operation agreement, the Postal Service shall agree to amend the terms and conditions of the contract postal unit operation agreement in accordance with this subsection.

  It mandates that any election to continue the agreement must also include a provision for amending the contract terms.

• 39 U.S.C. § 404

  (4) In this subsection-- (A) the term `contract postal unit' means a facility operated by a covered contractor at which the covered contractor provides retail postal services under a contract postal unit operation agreement; (B) the term `contract postal unit operation agreement' means a contract or other agreement between the Postal Service and a covered contractor under which the covered contractor operates a contract postal unit; and (C) the term `covered contractor' means an individual or entity operating a contract postal unit under a contract postal unit operation agreement.

  This section provides definitions for key terms related to contract postal units and contractors.

Action History

1. September 19, 2025

   Introduced in House

2. September 19, 2025

   Introduced in House

3. September 19, 2025

   Referred to the House Committee on Oversight and Government Reform.

Sponsors

• David Schweikert · Primary

Subjects