The U.S. Postal Service has faced repeated attacks by the Trump administration including denying emergency funding during the pandemic and putting postal workers at risk of losing their jobs, disrupting operations and services, and delaying mail delivery.

Congress and President Biden must immediately focus on ways to support this public institution.

One service that could not only strengthen the USPS but also serve individuals underserved by private institutions is postal banking. Postal Banking is simply the provision of financial services via the USPS. By allowing consumers to open a bank account at their post office, Postal Banking could help over 7 million American households that are unbanked — meaning they lack access to a checking account or basic financial services.

Postal Banking is far from a new concept. The U.S. had a Postal Savings System from 1911-1967 which in 1947 had $3.4 billion in assets (more than $35 billion in today’s dollars). And worldwide, 1.5 billion people receive some financial services through their postal service.

Sens. Kirsten Gillibrand and Bernie Sanders previously introduced the Postal Banking Act, which would not only bring basic financial services like low-cost savings and checking accounts to post offices but also take aim at predatory practices — payday loans, high-fee prepaid debit cards, overdraft fees — that have taken advantage of unbanked and underbanked Americans. Additionally, the law would allow the Postal Service to offer small-dollar loans that could eliminate the market for payday loans.

We must demand Congress pass the Postal Banking Act and support not only the USPS, but underserved communities across the country.

Vote by Mail PAC