Congressman David Schweikert of Arizona’s 1st District has introduced the Postal Contracting Financial Accountability Act (H.R.5530), a bill aimed at protecting community-based Contracted Postal Units (CPUs) from closure by the U.S. Postal Service (USPS). The legislation would require USPS to collaborate with private businesses willing to provide postal services without cost to the agency.
“The U.S. Postal Service would be required to work with private businesses that are willing to provide postal services to their community at no cost to the Postal Service,” said Rep. Schweikert. “Local shops, like card stores or pharmacies, can already handle these services, and if they’re willing to do it, USPS shouldn’t be shutting them down.”
The USPS, an independent federal agency, accumulated $9.5 billion in debt in 2024 after previously receiving $57 billion in federal debt forgiveness as part of the 2022 Postal Service Reform Act. During this period, access to local postal services has declined, with nearly 2,000 CPUs eliminated since 2010.
Schweikert’s proposal would amend Title 39 of the U.S. Code by granting contractors the right to challenge CPU contract terminations. Under this bill, CPUs that operate under existing terms without requiring federal subsidies could remain open, ensuring continued service for communities without additional taxpayer expense.
CPUs are typically located within small businesses such as retail stores or pharmacies. They not only provide convenient access to postal services but also help increase customer traffic and revenue for host businesses while offering residents more service options.
By utilizing private sector resources through CPUs, Schweikert argues that USPS can adopt a more financially sustainable model that supports small business growth and strengthens local infrastructure.
In recent elections, David Schweikert won reelection against Amish Shah in 2024 with 51.9% of the vote and defeated Jevin Hodge in 2022 with a narrow margin of 50.4%.
For those interested in further details about the legislation, the full bill text is available online.
