Postal Accountability and Enhancement Act

The Postal Accountability and Enhancement Act (PAEA), enacted in 2006, aimed to reform the U.S. Postal Service (USPS) to ensure its financial stability and efficiency. It introduced a pricing system that allowed USPS to adjust postage rates based on the market, rather than being strictly regulated. A key provision required the USPS to pre-fund retiree health benefits for future employees, which significantly impacted its finances. Overall, the PAEA sought to modernize postal operations, enhance accountability, and provide a framework for the USPS to adapt to changing mail demand and competition from private delivery services.