House rescue package includes $25 billion for Postal Service

WASHINGTON (AP) — A new coronavirus aid package released by House Democrats includes $25 billion for the cash-strapped U.S. Postal Service, which is expected to run out of money by the end of September without additional support from Congress because it’s losing so much revenue during the pandemic.

The bill released Tuesday also would repeal several restrictions on a $10 billion line of credit for the Postal Service authorized in a previous economic rescue law.

The House is expected to vote on the package as soon as Friday, but Senate Majority Leader Mitch McConnell has said there is no “urgency" for the Republican-controlled Senate to act.

President Donald Trump has publicly threatened to block the $10 billion loan unless the Postal Service significantly raises rates for packages delivered for Amazon and other big shippers. Trump has complained for years that the Postal Service was being exploited by Amazon and other shippers, but Democrats say his real target is Amazon CEO Jeff Bezos, who owns The Washington Post. Trump has feuded with what he's termed the "Amazon Washington Post" and other news organizations that have reported unfavorable developments during his campaign and presidency.

Rep. Gerry Connolly, D-Va., said Trump’s refusal to approve the loan without huge rate hikes was misguided.

“He is willing to sacrifice the U.S. Postal Service and its 630,000 employees because of petty vindictiveness and personal retaliation against Jeff Bezos,’’ Connolly said of Trump. “That would be a tragic outcome.”

Connolly, who chairs a House subcommittee that oversees the Postal Service, said Trump's claim that the Postal Service loses money on package delivery is "utterly false.'' Financial losses are due to a decadeslong decline in mail volume and a...