119th CONGRESS
1st Session
H. R. ____
To restore the United States Postal Service to its constitutional role as a public service, to eliminate commercial parcel competition, and to reestablish direct congressional oversight and funding of postal operations.
IN THE HOUSE OF REPRESENTATIVES
Mr. Yates introduced the following bill; which was referred to the Committee on Oversight and Accountability and the Committee on Transportation and Infrastructure.
A BILL
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “United States Postal Service Decommercialization Act of 2026.”
SECTION 2. FINDINGS.
Congress finds the following:
(1) Article I, Section 8 of the United States Constitution assigns Congress the authority and responsibility to establish Post Offices and Postal Roads.
(2) The Postal Reorganization Act of 1970 transformed the United States Postal Service into a self-sustaining entity, requiring revenue generation through commercial activities.
(3) This transformation has resulted in a conflict between the constitutional mandate to provide universal service and the operational incentives of a profit-driven model.
(4) The growth of e-commerce and commercial parcel delivery has shifted the focus of the Postal Service away from its core function as a communications infrastructure.
(5) Rural communities have experienced diminished service quality due to consolidation and operational changes driven by revenue considerations.
(6) The United States Postal Service serves as a critical national infrastructure for communication, civic participation, and economic stability.
SECTION 3. PURPOSE.
The purpose of this Act is to:
(1) Restore the United States Postal Service to its constitutional role as a public service;
(2) Eliminate reliance on commercial parcel revenue as a primary funding mechanism;
(3) Reestablish congressional responsibility for funding postal operations;
(4) Ensure reliable and equitable mail service to all Americans, including rural communities;
(5) Protect the Postal Service as a national communications backbone.
SECTION 4. ELIMINATION OF COMMERCIAL PARCEL COMPETITION.
(1) The United States Postal Service shall phase out participation in competitive commercial parcel delivery markets within a period not to exceed 36 months from the date of enactment.
(2) The Postal Service shall prioritize the delivery of letter mail, essential documents, medications, and government communications.
(3) The Postal Regulatory Commission shall oversee an orderly transition of commercial parcel services to private sector carriers.
(4) The Postal Service may continue to deliver parcels where necessary to fulfill universal service obligations in areas not adequately served by private carriers.
SECTION 5. TRANSITION OF COMMERCIAL OPERATIONS.
(1) The United States Postal Service is authorized to enter into agreements with private carriers, including but not limited to United Parcel Service and FedEx Corporation, for the transfer, sale, or licensing of commercial parcel operations.
(2) Proceeds from such agreements shall be deposited into the Postal Service Public Service Restoration Fund established under Section 6.
(3) Congress shall ensure that workforce protections are implemented to minimize displacement of postal employees during the transition.
SECTION 6. POSTAL SERVICE PUBLIC SERVICE RESTORATION FUND.
(1) There is established in the Treasury of the United States a fund to be known as the “Postal Service Public Service Restoration Fund.”
(2) The Fund shall be used to support the operations of the United States Postal Service as a public service.
(3) The Fund shall consist of:
(A) Congressional appropriations;
(B) Proceeds from commercial transition agreements;
(C) Any other funds designated by Congress.
SECTION 7. RESTORATION OF CONGRESSIONAL OVERSIGHT.
(1) The United States Postal Service shall operate under direct oversight of Congress.
(2) The Board of Governors shall be restructured to ensure accountability to Congress.
(3) Congress shall retain final authority over major operational changes, including facility closures and service reductions.
SECTION 8. UNIVERSAL SERVICE GUARANTEE.
(1) The United States Postal Service shall provide uniform, reliable, and affordable mail service to all communities in the United States.
(2) No service reductions shall disproportionately impact rural or underserved communities.
SECTION 9. EFFECTIVE DATE.
This Act shall take effect immediately upon enactment, with transition provisions implemented according to the timelines specified herein.
SECTION 10. FOREVER STAMP PRICE ESTABLISHMENT AND CONGRESSIONAL CONTROL.
(1) The price of a First-Class Mail Forever Stamp shall be fixed at $0.50 and shall take effect within 15 days of enactment of this Act.
(2) No increase in the price of First-Class Mail postage shall take effect unless expressly authorized by an Act of Congress.
(3) The United States Postal Service and the Postal Regulatory Commission are prohibited from independently adjusting, indexing, or otherwise modifying postage rates for First-Class Mail.
(4) Any proposed adjustment to postage rates shall be submitted to Congress with a full justification, including cost analysis, operational impacts, and effects on rural and underserved communities.
SECTION 11. LIMITATION ON E-COMMERCE AND COMMERCIAL PARCEL OPERATIONS.
(1) The United States Postal Service shall not prioritize or expand services designed primarily to support large-scale commercial e-commerce distribution networks.
(2) The Postal Service shall limit contractual relationships with private corporations for high-volume parcel delivery where such contracts interfere with or degrade the delivery of letter mail and essential communications.
(3) Nothing in this section shall prohibit the United States Postal Service from accepting, transporting, and delivering packages sent by individual members of the public for personal, non-commercial purposes.
(4) The Postal Service shall ensure that individuals retain affordable and reliable access to parcel services for personal use, including shipments between households.
(5) The Postal Regulatory Commission shall establish thresholds defining “high-volume commercial activity” and ensure compliance with the limitations set forth in this section.
SECTION 12. DISSOLUTION OF THE BOARD OF GOVERNORS.
(1) The United States Postal Service Board of Governors is hereby dissolved.
(2) All authorities, powers, and responsibilities previously vested in the Board of Governors shall be transferred to Congress.
(3) Interim operational authority shall be vested in a Congressional Postal Oversight Authority, composed of members designated by the House of Representatives and the Senate, until permanent statutory governance is established.
(4) No major operational decision, including facility closures, service reductions, or structural reorganizations, shall take effect without express approval by Congress.
SECTION 13. PROTECTION OF PUBLIC SERVICE PRIORITY.
(1) The United States Postal Service shall prioritize the delivery of letter mail, government communications, medications, and essential documents over all commercial shipping activities.
(2) Operational capacity shall be allocated first to fulfill the constitutional mandate of universal mail service before any commercial or secondary services are provided.
(3) The Postal Service shall certify annually to Congress that its operations remain aligned with its primary public service mission.
SECTION 14. DEFINITION OF COMMERCIAL PARCEL ACTIVITY.
(1) For purposes of this Act, the term “commercial parcel activity” means any shipment of goods or materials through the United States Postal Service that meets one or more of the following conditions:
(A) The return address or sender identification lists a business entity, trade name, corporation, partnership, or any entity other than a natural person;
(B) The parcel is sent in furtherance of a commercial transaction, including but not limited to retail sales, fulfillment operations, inventory distribution, or business-to-consumer delivery;
(C) The shipment originates from an entity engaged in business activity generating annual gross revenue exceeding $1,000,000.
(2) The term “personal parcel” means any shipment sent by a natural person, not in connection with a commercial transaction, for personal, household, or non-business purposes.
(3) The Postal Regulatory Commission shall issue guidance to ensure that classification determinations prioritize substance over form and prevent evasion through mislabeling or intermediary shipping practices.
SECTION 15. PROHIBITION ON HIGH-VOLUME COMMERCIAL USE OF USPS.
(1) Any business entity with annual gross revenue exceeding $1,000,000 is prohibited from utilizing the United States Postal Service for commercial parcel delivery, except as specifically authorized under limited rural service exemptions defined by the Postal Regulatory Commission.
(2) The United States Postal Service shall not enter into or maintain contracts that facilitate high-volume commercial parcel distribution for such entities.
(3) Nothing in this section shall prohibit small businesses under the revenue threshold from utilizing USPS services, provided such use does not materially degrade public service obligations.
SECTION 16. ENFORCEMENT AND PENALTIES.
(1) Any business entity in violation of Section 15 shall be subject to significant civil penalties designed to deter misuse of the United States Postal Service as a commercial logistics platform.
(2) For business entities with annual gross revenue exceeding $1,000,000, penalties shall include:
(A) A civil fine of not less than $1,000,000 per violation and not more than $100,000,000 per pattern or practice of violations;
(B) Immediate suspension of access to USPS services for commercial shipping;
(C) Disqualification from entering future service agreements with the United States Postal Service.
(3) Each day of continued violation or coordinated shipment activity may be treated as a separate violation for purposes of enforcement.
(4) The Attorney General of the United States shall have authority to bring civil actions to enforce this section.
(5) Penalties collected under this section shall be deposited into the Postal Service Public Service Restoration Fund.
SECTION 17. ANTI-EVASION PROVISIONS.
(1) No entity may evade the requirements of this Act by routing shipments through third-party individuals, shell entities, or intermediary services.
(2) Any scheme designed to disguise commercial shipments as personal parcels shall be treated as a violation subject to enhanced penalties.
(3) The Postal Service shall implement verification and auditing procedures to identify and prevent such evasion.
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