Title 39 — Postal ServiceRelease 119-73
§2401 Appropriations
Title 39 › Part PART III— - MODERNIZATION AND FISCAL ADMINISTRATION › Chapter CHAPTER 24— - APPROPRIATIONS AND ANNUAL REPORT › § 2401
Summary
The Postal Service keeps all the revenue it collects. Congress is allowed to give extra yearly payments to help cover public-service costs in places where post offices do not pay for themselves. For fiscal years 1972–1979 the law allowed payments equal to 10% of the amount the old Post Office Department got for 1971; for 1980 it was 9%; for 1981 $486,000,000; for 1982 $250,000,000; for 1983 $100,000,000; for 1984 no funds; and after that the default is an amount equal to 5% of the 1971 sum. After fiscal year 1984 the Postal Service may cut that percentage, even to 0, if it finds the money is not needed. The law also allows annual payments to make up the difference between revenues the Postal Service would have had if sections 3217 and 3403–3406 had not been passed and the estimated revenues under those sections, and requires reconciliation for prior years when asking for that money. It also authorizes $29,000,000 each year for fiscal years 1994 through 2035 for losses tied to earlier shortfalls and revenue rules under section 3626(a). When sending its annual budget under section 2009, the Postal Service must give copies of the budget and a detailed statement to the Senate Committee on Governmental Affairs, the House Committee on Government Reform, and both the Senate and House Appropriations Committees. The statement must cover its plans to follow section 101, operations and performance data, recent and planned expenditures and how they will be paid for, and any other matters those committees need. If the President does not ask for these authorized funds, that does not count as a failure of appropriations. Rates for certain zone-rated parcels that used to be under former chapter 67 must not be reduced by more than 10% compared with what they would be if the payments above were not made.
Full Legal Text
Title 39, §2401
Postal Service — Source: USLM XML via OLRC
(a)There are appropriated to the Postal Service all revenues received by the Postal Service.
(b)(1)As reimbursement to the Postal Service for public service costs incurred by it in providing a maximum degree of effective and regular postal service nationwide, in communities where post offices may not be deemed self-sustaining, as elsewhere, there are authorized to be appropriated to the Postal Service the following amounts:
(A)for each of the fiscal years 1972 through 1979, an amount equal to 10 percent of the sum appropriated to the former Post Office Department by Act of Congress for its use in fiscal year 1971;
(B)for fiscal year 1980, an amount equal to 9 percent of such sum for fiscal year 1971;
(C)for fiscal year 1981, $486,000,000;
(D)for fiscal year 1982, $250,000,000;
(E)for fiscal year 1983, $100,000,000;
(F)for fiscal year 1984, no funds are authorized to be appropriated; and
(G)except as provided in paragraph (2) of this subsection, for each fiscal year thereafter an amount equal to 5 percent of such sum for fiscal year 1971.
(2)After fiscal year 1984, the Postal Service may reduce the percentage figure in paragraph (1)(G) of this subsection, including a reduction to 0, if the Postal Service finds that the amounts determined under such paragraph are no longer required to operate the Postal Service in accordance with the policies of this title.
(c)There are authorized to be appropriated to the Postal Service each year a sum determined by the Postal Service to be equal to the difference between the revenues the Postal Service would have received if section 3217 and 3403 through 3406 had not been enacted and the estimated revenues to be received on mail carried under such sections. In requesting an appropriation under this subsection for a fiscal year, the Postal Service shall include an amount to reconcile sums authorized to be appropriated for prior fiscal years on the basis of estimated mail volume.
(d)As reimbursement to the Postal Service for losses which it incurred as a result of insufficient amounts appropriated under section 2401(c) for fiscal years 1991 through 1993, and to compensate for the additional revenues it is estimated the Postal Service would have received under the provisions of section 3626(a) (as last in effect before enactment of the Postal Accountability and Enhancement Act), for the period beginning on October 1, 1993, and ending on September 30, 1998, if the fraction specified in subclause (VI) of section 3626(a)(3)(B)(ii) (as last in effect before enactment of the Postal Accountability and Enhancement Act) were applied with respect to such period (instead of the respective fractions specified in subclauses (I) through (V) thereof), there are authorized to be appropriated to the Postal Service $29,000,000 for each of fiscal years 1994 through 2035.
(e)The Postal Service shall present to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives and the Committees on Appropriations of the Senate and the House of Representatives, at the same time it submits its annual budget under section 2009 of this title, sufficient copies of the budget of the Postal Service for the fiscal year for which funds are requested to be appropriated, and a comprehensive statement relating to the following matters:
(1)the plans, policies, and procedures of the Postal Service designed to comply with all of the provisions of section 101 of this title;
(2)postal operations generally, including data on the speed and reliability of service provided for the various classes of mail and types of mail service, mail volume, productivity, trends in postal operations, and analyses of the impact of internal and external factors upon the Postal Service;
(3)a listing of the total expenditures and obligations incurred by the Postal Service for the most recent fiscal year for which information is available, an estimate of the total expenditures and obligations to be incurred by the Postal Service during the fiscal year for which funds are requested to be appropriated, and the means by which these estimated expenses will be financed; and
(4)such other matters as the committees may determine necessary to ensure that the Congress is fully and currently consulted and informed on postal operations, plans, and policies.
(f)The failure of the President to request the appropriation of any part of the funds authorized by this section may not be deemed a failure of appropriations.
(g)The rates established under chapter 36 of this title for zone-rated parcels formerly entered under former chapter 67 of this title shall not be more than 10 percent less than the rates for such mail would be if the funds authorized under subsection (b) were not appropriated.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
Enactment of the Postal Accountability and Enhancement Act, referred to in subsec. (d), means the enactment of Pub. L. 109–435, which was approved Dec. 20, 2006. Former chapter 67 of title 39, referred to in subsec. (g), means chapter 67 (§ 4551 et seq.) of former Title 39, The Postal Service, prior to the general revision and reenactment of Title 39 by Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 719.
Amendments
2006—Subsec. (d). Pub. L. 109–435, § 1010(c)(2), inserted “(as last in effect before enactment of the Postal Accountability and Enhancement Act)” after “section 3626(a)” and after “section 3626(a)(3)(B)(ii)”. Subsec. (e). Pub. L. 109–435, § 1010(d)(1), substituted “Committee on Government Reform” for “Committee on Post Office and Civil Service” in introductory and concluding provisions and “Each year,” for “Not later than March 15 of each year,” in concluding provisions. 1994—Subsec. (e). Pub. L. 103–437, in introductory provisions, substituted “Committee on Governmental Affairs of the Senate and the Committee on Post Office and Civil Service of the House of Representatives” for “Committees on Post Office and Civil Service”, and, in concluding provisions, substituted “Committee on Governmental Affairs of the Senate and the Committee on Post Office and Civil Service of the House of Representatives” for “Committees on Post Office and Civil Service of the Senate and the House of Representatives”. 1993—Subsec. (c). Pub. L. 103–123, § 703(a), in first sentence substituted “if section 3217 and 3403 through 3406 had not been enacted” for “if section 3217, 3403–3406, 3626(a)–(h), 3626(j)–(k), and 3629 of this title, had not been enacted” and “such sections.” for “such sections and Acts.” and in second sentence struck out “(i)” after “Postal Service shall” and substituted “volume.” for “volume; and (ii) calculate the sums requested in respect of mail under former section 4452(b) and 4452(c) of this title as though all such mail consisted of letter shaped pieces, as such pieces are defined in the then effective classification and rate schedules.” Pub. L. 103–31 substituted “3626(a)–(h), 3626(j)–(k), and 3629 of this title” for “and 3626(a)–(h) and (j)–(k) of this title,” in first sentence. Subsec. (d). Pub. L. 103–123, § 704(b)(1)(A), (E), added subsec. (d) and struck out former subsec. (d) which read as follows: “(d)(1) There is authorized to be appropriated to the Postal Service for fiscal year 1976 and for the period beginning
July 1, 1976, and ending
September 30, 1976, the amount of $500,000,000 to be applied against the accumulated operating indebtedness of the Postal Service as of
September 30, 1976. “(2) There is authorized to be appropriated to the Postal Service for fiscal year 1977 the amount of $500,000,000 to be applied against the accumulated operating indebtedness of the Postal Service as of
September 30, 1977.” Subsec. (e). Pub. L. 103–123, § 704(b)(1)(A), (B), redesignated subsec. (g) as (e) and struck out former subsec. (e) which restricted Postal Service from effectuating any rate of postage exceeding rates in effect on Sept. 24, 1976, diminishing services below
July 1, 1976, levels, closing post offices where 35 or more families regularly receive their mail and which was providing service on
July 1, 1976, or closing post offices where fewer than 35 families receive their mail and which was providing service on
July 1, 1976, unless 60 percent of patrons consent to such closing in writing. Subsec. (f). Pub. L. 103–123, § 704(b)(1)(A)–(C), redesignated subsec. (h) as (f), struck out at end “The failure of the President to request the appropriation of any part of the funds authorized by this section shall not relieve the Postal Service from the responsibility to comply with the provisions of subsections (e) and (f) of this section.”, and struck out former subsec. (f) which read as follows: “During the period beginning on the date of the appropriation of the funds under subsection (d)(1) and ending on the date on which the Commission on Postal Service is required to transmit the final report required under section 7(f)(1) of the Postal Reorganization Act
Amendments
of 1976 to the President and each House of Congress, the Postal Service shall provide door delivery or curbline delivery to all permanent residential addresses (other than apartment building addresses) to which service is begun on or after the date of enactment of the Postal Reorganization Act
Amendments
of 1976.” Subsec. (g). Pub. L. 103–123, § 704(b)(1)(B), (D), redesignated (i) as (g) and substituted “subsection (b)” for “subsections (b) and (d) of this section”. Former subsec. (g) redesignated (e). Subsecs. (h), (i). Pub. L. 103–123, § 704(b)(1)(B), redesignated subsecs. (h) and (i) as (f) and (g), respectively. 1991—Subsec. (c). Pub. L. 102–141 amended last sentence generally. Prior to amendment, last sentence read as follows: “In requesting an appropriation under this subsection for a fiscal year, the Postal Service shall include an amount to reconcile sums authorized to be appropriated for prior fiscal years on the basis of estimated mail volume with sums which would have been authorized to be appropriated if based on the final audited mail volume.” 1990—Subsec. (c). Pub. L. 101–509 substituted “3626(a)–(h) and (j)–(k)” for “3626(a)–(h)”. 1986—Subsec. (c). Pub. L. 99–509 substituted “3626(a)–(h)” for “3626”. Pub. L. 99–410 substituted “3406” for “3405” and struck out “the Overseas Citizens Voting Rights Act of 1975, and the Federal Voting Assistance Act of 1955” after “3626 of this title,”. 1981—Subsec. (b)(1). Pub. L. 97–35 substituted “$250,000,000” for “an amount equal to 7 percent of such sum for fiscal year 1971” in subpar. (D), substituted “$100,000,000” for “an amount equal to 6 percent of such sum for fiscal year 1971” in subpar. (E), and substituted “no funds are authorized to be appropriated” for “an amount equal to 5 percent of such sum for fiscal year 1971” in subpar. (F). 1980—Subsec. (b)(1)(C). Pub. L. 96–499, § 411, substituted “$486,000,000” for “an amount equal to 8 percent of such sum for fiscal year 1971”. Subsec. (c). Pub. L. 96–499, § 414(a), inserted provision requiring Postal Service when requesting an appropriation under subsec. (c) to reconcile sums authorized to be appropriated for prior fiscal years on the basis of estimated mail volume with sums which would have been authorized if based on the final audited mail volume. 1978—Subsec. (c). Pub. L. 95–593 inserted provisions relating to applicability of Overseas Citizens Voting Rights Act of 1975. 1976—Subsec. (b)(3). Pub. L. 94–421, § 2(a), struck out par. (3) which required Postal Service, when requesting appropriations, to present to the appropriate committees in Congress, a statement of its compliance with the cost policy established under section 101(b) of this title. Subsecs. (d) to (i). Pub. L. 94–421, § 2(b), added subsecs. (d) to (i).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Government Reform of House of Representatives changed to Committee on Oversight and Government Reform of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Congress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023. Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004.
Effective Date
of 1993 Amendment Pub. L. 103–123, title VII, § 703(b), Oct. 28, 1993, 107 Stat. 1267, provided that: “The
Amendments
made by subsection (a) [amending this section] shall apply with respect to appropriations for fiscal years beginning after September 30, 1993.” Pub. L. 103–123, title VII, § 704(c)(2), Oct. 28, 1993, 107 Stat. 1271, provided that: “The
Amendments
made by subsection (b) [amending this section] shall apply with respect to appropriations for fiscal years beginning after
September 30, 1993.” Amendment by Pub. L. 103–31 effective (1) with respect to a State that, on
May 20, 1993, has a provision in the constitution of the State that would preclude compliance with section 20501 et seq. of Title 52, Voting and Elections, unless the State maintained separate Federal and State official lists of eligible voters, on the later of Jan. 1, 1996, or the date that is 120 days after the date by which, under the constitution of the State as in effect on
May 20, 1993, it would be legally possible to adopt and place into effect any
Amendments
to the constitution of the State that are necessary to permit compliance with section 20501 et seq. of Title 52 without requiring a special election, and (2) with respect to a State not described in cl. (1) on Jan. 1, 1995, see section 13 of Pub. L. 103–31, set out as an
Effective Date
note under section 20501 of Title 52.
Effective Date
of 1990 Amendment Pub. L. 101–509, title II, § 1(c), Nov. 5, 1990, 104 Stat. 1398, provided that: “The amendment enacted by this section [amending this section and section 3626 of this title] shall become effective ninety days after the date of enactment of this Act [Nov. 5, 1990].”
Effective Date
of 1986
Amendments
Amendment by Pub. L. 99–509 effective Jan. 1, 1989, or
Effective Date
of next general change in rates and fees under section 3622 and 3625 of this title [Apr. 3, 1988], whichever is sooner, see section 6003(c) of Pub. L. 99–509 set out as a note under section 3626 of this title. Amendment by Pub. L. 99–410 applicable with respect to elections taking place after Dec. 31, 1987, see section 204 of Pub. L. 99–410, set out as an
Effective Date
note under section 20301 of Title 52, Voting and Elections.
Effective Date
of 1981 AmendmentAmendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 1727 of Pub. L. 97–35, set out as a note under section 2003 of this title.
Effective Date
of 1980 Amendment Pub. L. 96–499, title IV, § 415, Dec. 5, 1980, 94 Stat. 2608, provided that: “The provisions of this subtitle, including the
Amendments
made by this subtitle [subtitle B (§§ 411–415) of title IV of Pub. L. 96–499, amending this section and enacting provisions set out as a note under section 403 of this title], shall take effect on the date of the enactment of this Act [Dec. 5, 1980].”
Effective Date
Subsec. (a) of this section effective
July 1, 1971, pursuant to Resolution No. 71–9, of the Board of Governors, and subsecs. (b) and (c) effective Jan. 20, 1971, pursuant to Resolution No. 71–10 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title. Termination of Reporting RequirementsFor termination, effective
May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which the last item on page 194 identifies a reporting provision which, as subsequently amended, is contained in subsec. (e) of this section), see section 3003 of Pub. L. 104–66, as amended, and section 1(a)(4) [div. A, § 1402(1)] of Pub. L. 106–554, set out as notes under section 1113 of Title 31, Money and Finance. Reduction of Authorization for Revenue Foregone Pub. L. 99–272, title XV, § 15101, Apr. 7, 1986, 100 Stat. 330, provided that: “Notwithstanding subsection (c) of section 2401 of title 39, United States Code, the amount authorized to be appropriated pursuant to such subsection for fiscal year 1986 shall be $749,000,000.” Pub. L. 97–35, title XVII, § 1723, Aug. 13, 1981, 95 Stat. 759, as amended effective Oct. 1, 1982, by Pub. L. 97–216, title I, § 101,
July 18, 1982, 96 Stat. 189, provided that: “Notwithstanding section 2401(c) of title 39, United States Code, the amount authorized to be appropriated under such section shall not exceed— “(1) $696,000,000 for fiscal year 1982; “(2) $708,000,000 for fiscal year 1983; or “(3) $760,000,000 for fiscal year 1984.”
Reference
Citations & Metadata
Citation
39 U.S.C. § 2401
Title 39 — Postal Service
Last Updated
Apr 6, 2026
Release point: 119-73