Over the last ten years, the United States Congress has made it increasingly difficult for the United States Postal Service ("USPS")1 to encourage economic development on the ground. Congress has deprived the USPS of its traditional means of achieving local economic development goals, which have largely benefited sub-national governments by providing indirect federal subsidies. This deprivation has occurred, at least in part, through the 2006 Postal Accountability and Enhancement Act ("PAE Act"), which expressly limits the USPS's right to offer certain non-services like domestic money transfers and other financial products. In an attempt to provide a measure of guidance to the USPS, this Article does four things. First, it explains how to provide new incentives for people to buy USPS money transfers through the Sure Money ®/DineroSeguro® Program ("SM/DS"). The Article also describes how a subsequent increase in USPS money transfer sales could expand local tax bases. Third, it shows why any expansion of local tax bases may help U.S. cities in crisis to improve their prospects. Lastly, this Article explains how expansion may impact a range of different parties. Examples include the real parties in interest, third party beneficiaries, and unrelated third parties.
Johnson, Randall K., "How the United States Postal Service (USPS) Could Encourage More Local Economic Development" (2017). Journal Articles. 128.