USPS Executive Benefit and Bonus Removal Act

Bill Number

S. 5373

Origin Chamber

Senate

Congress

119th Congress, Session 2

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2026-08-07: Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure: CR S4567-4568)

Last Updated

2026-08-25T22:01:45Z

AI-Generated Summary

Purpose The legislation aims to restrict compensation and certain benefits for high-level executives at the U.S. Postal Service (USPS) by amending title 39 of the United States Code. It seeks to limit perks and pay for these officials while preserving existing rules for other employees.

Key Provisions

• Fringe Benefit Restrictions: Defines "covered executive officers" as the Postmaster General, Deputy Postmaster General, and senior Postal Career Executive Service staff (level II or above), excluding the Inspector General. Prohibits specific perks such as wellness incentives (unless offered equally to all career employees), special parking, financial or tax planning services, retirement counseling (unless equal for all), trusted traveler program fees, airline or hotel loyalty memberships, and most relocation expenses.
• Travel Limits: Bars first-class or business-class air travel for covered executives, with an exception for standard official travel under federal rules.
• Compensation Cap: Sets a maximum total pay for any USPS officer, executive, or employee at the level of the U.S. President's compensation.
• Bonus Restrictions: Prevents the Postmaster General from receiving bonuses or extra pay in any year when USPS spending exceeds revenue.
• Anti-Circumvention Rules: Blocks attempts to replace prohibited benefits with higher base pay, bonuses, or deferred compensation.
• Reimbursement Requirement: Executives who receive banned benefits must repay their value to USPS.
• Protections for Others: Leaves unchanged benefits for non-executive employees, union members under collective bargaining, and certain other categories.

Significant Changes to Existing Law

• Adds new limits in sections 1003 and 1001 of title 39, United States Code, that did not previously apply to executive perks or overall pay caps.
• Modifies section 202 to tie Postmaster General bonuses to USPS financial performance, overriding prior authority under section 3686.
• Introduces explicit definitions for fringe benefits and deferred compensation to close potential loopholes.

Potential Impacts

• On Government Agencies: May reduce costs for USPS by eliminating certain executive expenses, though the agency could face administrative burdens in tracking and enforcing reimbursements.
• On Citizens: Could indirectly affect mail service if executive retention or morale changes, but the bill does not alter public-facing operations or rates.
• On International Relations: No direct effects noted in the legislation.

Main Stakeholders Affected

• USPS executive officers, including the Postmaster General and senior leadership.
• USPS as an agency, responsible for compliance and enforcement.
• Non-executive USPS employees and union-represented workers, whose benefits remain protected.
• Congress and the public, through oversight of federal agency spending.

Notable Legal, Constitutional, or Political Implications

• The bill operates within Congress's authority to regulate federal entities like USPS but does not address constitutional questions such as executive compensation limits.
• Includes a rule of construction to avoid affecting collective bargaining agreements or general employee benefits.
• Focuses on fiscal restraint without altering the independent structure of USPS governance.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Rounds, Mike [R-SD]

Recent Actions

• 2026-08-07: Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure: CR S4567-4568)
• 2026-08-07: Introduced in Senate

Bill Versions

• USPS Executive Benefit and Bonus Removal Act — issued 2026-08-07 — PDF (7 pages)