Democratic congressional candidate Blake Gendebien is opposed to privatizing the U. S. Postal Service.
Republican candidate Anthony Constantino will not rule it out.
“It depends on improvement in quality,” said Constantino, when asked specifically whether or not he supports privatization.
The fate of the U. S. Postal Service is expected to be a major topic early in the next congressional session.
Without congressional action, the Postal Service could be out of operating cash by February 2027, leaving the system unable to pay employees and vendors, Postmaster General David Steiner warned this spring.
“So in about a year from now, the Postal Service will be unable to deliver the mail if we continue the status quo,” he said, testifying March 17 at a hearing of the House Government Operations Subcommittee.
That date may be extended due to authorization in July to increase the price of stamps, but that alone will not be able to remedy long-term shortfalls.
U.S. Rep. Pete Sessions, R-TX, and Rep. Kweisi Mfume, D-MD, are drafting bipartisan legislation to prevent the Postal Service from shutting down.
Meanwhile, it is expected that President Trump will renew his push to privatize the Postal Service, said Steve Hutkins of Rhinebeck, executive director of the advocacy organization Save the Post Office.
“Privatizing the Postal Service would be a disaster for rural communities like ours,” Gendebien said. “It’s a public good that people depend on, not something to hand over to Wall Street shareholders.”
Gendebien said many rural families relay on the Postal Service to receive prescriptions and pay bills.
Independent write-in candidate Christopher Schmidt also opposes privatizing the Postal Service.
“I do not support privatizing the Postal Service. Universal mail delivery is a public good, much like roads or bridges. Rural communities should not lose access to affordable mail simply because serving them is less profitable,” Schmidt said.
Constantino said privatization should be considered in tandem with streamlining the operation.
“I want to modernize and improve the postal service,” Constantino said. “I had to stop using USPS at my company because they lose packages all the time. Lost packages are terrible for seniors who rely on USPS for their medicine and also for businesses.”
In March 2021, the Postal Service launched a ten-year plan to streamline services and improve finances.
The Postal Service was supposed to reach the break-even point this year.
But that goal has not been achieved, and losses have increased in an inflationary economy.
One of the potential congressional actions that has been discussed is to increase the Postal Service borrowing limit, which has been $15 billion since 1992.
“I don’t have an issue with increasing borrowing if it’s tied to improved performance,” Constantino said.
Gendebien supports the increase.
“This limit has been frozen at $15 billion since 1992, even though USPS expenses have roughly doubled since then,” he said.
“Potentially, but only as part of a broader restructuring plan,” Schmidt said.
Another potential congressional option being discussed is for the federal government to provide a temporary subsidy in exchange for the Postal-Service agreeing to maintain six-day delivery and keep all existing rural post offices open.
Constantino questioned the need for a subsidy.
“Again, if performance improves you can have 6- day delivery and rural service,” he said.
Gendebien supports providing a temporary subsidy.
“Rural post offices are often the only federal presence in small towns across our district. We need to keep them open,” he said. “A temporary subsidy that protects six-day service and keeps them open is a fair trade.”
Schmidt said he would support a subsidy provided it was “truly temporary,” with a defined end point.
“Communities across the North Country rely on six-day delivery and local post offices. A temporary federal subsidy is appropriate to prevent service disruptions while reforms are implemented,” he said.
Another possible congressional action being discussed is to allow the Postal Service to invest its retirement funds in the general investment market, rather than in a designated retirement fund with lower returns.
“I support allowing the Postal Service to adopt responsible investment practices to strengthen its financial stability. Any changes should protect retirees and employees while helping preserve affordable, reliable mail service,” Gendebien said.
“Yes, with restrictions,” Constantino said. “They should invest in low-cost index funds that mirror the market. We don’t want fund managers skimming off the funds.”
Schmidt said that “strong safeguards” should be in place.
“I would support giving the Postal Service similar flexibility, provided investments remain diversified, professionally managed, transparent, and focused on protecting employees’ retirement security rather than pursuing excessive risk,” he said.
All three candidates said mail delivery is important.
Constantino, an Amsterdam business owner who lives in Edinburg, in Saratoga County, Gendebien, a farmer from Lisbon, in St. Lawrence County, and Schmidt, a day laborer from Hudson Falls, are running for the open seat in the 21st Congressional District, where six-term U. S. Rep. Elise Stefanik is not seeking re-election.