Obama Wants To Cut Saturday Mail Service And Return $7 Billion To The USPS

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[credit provider=”Daniel Goodman / Business Insider”]

In President Obama’s deficit reduction proposal released Monday, the White House lays out plans to cut Saturday postal delivery, to allow the USPS to sell a wider selection of goods at its locations, and tells Congress to return a $7 billion overpayment to the beleaguered postal service.The money was put into a federal retirement fund to cover retirement and health-care costs, and has become a sticking point among USPS employees in their negotiations with legislators.

Obama’s plan would also enable the post office to raise stamp prices beyond the rate of inflation to better cover the costs of delivery.

Check out this piece by The Washington Post for a full run-down on what next for the post office.