Postal overhaul bill held up in Senate

A sweeping postal overhaul bill that Senate Homeland Security and Governmental Affairs Chairwoman Susan Collins, R-Maine, and Sen. Thomas Carper, D-Del., had hoped to see approved by unanimous consent this week has been stalled after a handful of senators expressed concerns about the bill's budget impact and other provisions.

Sens. Jeff Sessions, R-Ala., and Jim DeMint, R-S.C., are among the senators questioning the bill's handling of an escrow account and language that shifts payment of the military pension of agency employees back to the Treasury, according to a postal lobbyist.

A spokesman for Sessions confirmed that he had placed a hold on the bill, but did not say whether Sessions' concerns necessarily stemmed from the bill's budget impact.

"It had just moved and Sen. Sessions wanted to read it before it went on unanimous consent," the spokesman said.

A spokesman for DeMint did not return calls by presstime.

Sen. Tom Harkin, D-Iowa, who also placed a hold on the bill, has concerns about a possible consolidation of mail processing facilities in his state. The proposal could shift facilities from Sioux City, Iowa, to Sioux City, S.D. -- possibly affecting services in the western part of the state, Harkin's spokeswoman said.

"This bill would be our opportunity to address that," a Harkin aide said. She said Harkin views the measure as the best vehicle available for a possible legislative solution. "We didn't want to give up our piece of leverage," the aide said.

Collins and Carper, as well as mailing industry lobbyists, are working to address other senators' questions. "They don't pay five seconds of attention to the post office most of the year," said one lobbyist. "There are a couple senators who feel they need a better understanding of what's going on."

A spokesman for Carper was optimistic the bill would be approved soon.

Meanwhile, the Postal Service has been expressing its own concern with the legislation. The agency said this week that the bill would lead to record rate increases and questioned language calling for the agency to use money slated for an escrow account to finance employee health benefits.

Aides for Carper and Collins circulated a statement attempting to dispel those claims. They said the escrow language was intended to force the Postal Service to "be more financially responsible ... The Postal Service currently owes its employees and retirees upwards of $45 billion in health care benefits. They are largely ignoring these costs, knowing that future ratepayers or even the taxpayers will pick up the tab when the bills come due."