Bush signs Postal Accountability Act requiring USPS to pre-fund 75 years of retiree benefits

President George W. Bush signs the Postal Accountability and Enhancement Act (PAEA, P.L. 109-435) during a lame-duck session of Congress. The law's most consequential provision requires USPS to pre-fund 75 years' worth of retiree health benefits in just 10 years, a mandate no other federal agency or private corporation faces. Annual payments range from $5.4 to $5.8 billion. The Bush administration inserts the requirement to use USPS pre-funding to reduce the federal deficit. By 2019, USPS carries $160.9 billion in debt, with 87% attributable to the pre-funding mandate.