WASHINGTON, D.C. — Last week, Congressman David Schweikert (AZ-01) introduced the Postal Contracting Financial Accountability Act, H.R.5530, which protects community-based Contracted Postal Units (CPUs) from being shut down under flawed criteria by the U.S. Postal Service (USPS).

“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.”

Despite operating as an independent agency, the Postal Service accumulated $9.5 billion in debt in 2024, following $57 billion in federal debt forgiveness in the 2022 Postal Service Reform Act. Meanwhile, the agency has steadily reduced access to local services, eliminating nearly 2,000 CPUs since 2010.

Schweikert’s bill reforms Title 39 of the U.S. Code to give contractors the right to dispute CPU contract terminations. If a CPU can operate under existing terms without federal subsidy it would be able to remain open. This ensures critical postal services continue without interruption at no cost to taxpayers.

CPUs are often located in small businesses, such as local retail stores or pharmacies. In addition to providing convenient access to postal services, CPUs drive increased foot traffic for the businesses that host them. This model helps local shops attract new customers and generate steady revenue, while giving residents more convenient service options.

By leveraging the private sector, CPUs offer USPS a fiscally solvent and scalable model that supports small business growth and strengthens community infrastructure.

You can read the full bill text here.