White House issues veto threat to $25B USPS funding bill

The White House threatened to veto emergency legislation the House is slated to pass Saturday that would infuse the United States Postal Service with $25 billion and reverse cost-cutting measures that have slowed down mail delivery.

"USPS does not need a $25 billion bailout," the White House said in the veto threat issued Friday evening. "It needs reforms that will return it to a trend of long-term financial self-sufficiency."

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The White House said the Post Office legislation misses an opportunity to improve the USPS, imposes "burdensome new requirements" and creates a new opportunity for lawsuits against "the already heavily indebted agency."

"If H.R. 8015 were presented to the president, his advisors would recommend that he veto the bill," the statement from the Office of Management and Budget read.

House Speaker Nancy Pelosi is calling back the House from its summer recess for a rare Saturday session to vote on the $25 billion postal legislation.

The bill aims to undo the service changes Postmaster General Louis DeJoy implemented that Pelosi and Democrats contend have slowed down mail service in an effort to "sabotage" the 2020 election, which will rely more than ever on mail-in ballots because of the coronavirus pandemic.

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Amid growing concerns over mail delays, restrictions on overtime and removal of equipment, DeJoy this week announced he would delay further changes to operations until after the election.

"To avoid even the appearance of any impact on election mail, I am suspending these initiatives until after the election is concluded," DeJoy said in a statement Tuesday.

But Democrats say the announcement didn't go far enough and want legislation to reverse the policy changes and make it illegal for USPS to reduce services until after the coronavirus pandemic or Jan. 31, 2021 -- whichever is later.

The House legislation would prohibit reducing service hours at postal facilities, decommissioning mail sorting machines and removing community mailboxes. The bill would also bar any limits on overtime pay, hiring freezes, delaying mail service and treating election mail as anything less than first-class mail.

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The White House said Democrats are overreacting.

"This bill is an overreaction to sensationalized media reports that have made evidence-free accusations that USPS has undertaken reforms to achieve political rather than operational objectives," the White House said.

Fox Business' Blake Burman contributed to this report.