PERFORM Act
- Sponsor
- Rep. Strong, Dale W. [R-AL-5]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Jul 23, 2026
Bottom line
The PERFORM Act aims to tie the Postmaster General's performance-based compensation directly to the Postal Service's financial health, service performance, and transparency.
What it actually does
This bill, known as the PERFORM Act, amends title 39 of the U.S. Code to prohibit the Postmaster General (PMG) from receiving bonuses or performance-based compensation if the Postal Service (USPS) incurred a net loss, failed to meet service targets, had a poor financial audit, or did not submit a required annual report to Congress in the preceding fiscal year. It also mandates the PMG to submit an annual report detailing executive compensation, performance metrics, and financial and service data, with a review by the Inspector General.
Proponents argue
Supporters argue that this bill introduces much-needed accountability for the Postmaster General, ensuring that executive bonuses are only awarded when the Postal Service is performing well financially and meeting its service obligations to the public. They contend it aligns executive incentives with the public interest and encourages fiscal responsibility and operational efficiency within the USPS.
Opponents contend
Critics might argue that tying compensation so strictly to broad organizational metrics could disincentivize the Postmaster General from taking necessary long-term strategic actions that might initially impact short-term financial or service performance but are crucial for future viability. They might also contend that it could make it harder to attract and retain top talent for the PMG position if compensation is too volatile or restrictive.
The bill is very short and straightforward, allowing for a quick and easy understanding of its provisions.
Section 2, amending 39 U.S.C. 3686(e)(1)
Prohibiting Postmaster General Bonuses Under Specific Conditions
This provision prevents the Postmaster General from receiving any bonus, incentive award, retention payment, or other performance-based compensation for a fiscal year if, in the preceding fiscal year, the Postal Service either spent more than it earned, failed to meet its nationwide service performance targets, received a negative financial audit opinion (material weakness, adverse, or disclaimer), or did not submit a required report to Congress.
Supporters argue
Supporters argue this provision directly links the PMG's personal financial incentives to the overall health and performance of the Postal Service, promoting greater accountability and encouraging better management of finances and service delivery.
Critics contend
Opponents might argue that this provision could create perverse incentives, leading the PMG to prioritize short-term gains or manipulate reporting to ensure bonus eligibility, potentially at the expense of long-term strategic investments or difficult but necessary reforms.
Tradeoffs
The tension lies between ensuring accountability for performance and potentially creating disincentives for long-term strategic decisions that might negatively impact short-term metrics but are crucial for the USPS's future.
Section 2, amending 39 U.S.C. 3686(e)(2) and (e)(3)
Enhanced Transparency and Oversight of Postal Executive Compensation
This provision requires the Postmaster General to submit an annual report to Congress within 30 days of the fiscal year end. This report must detail all bonuses and performance-based compensation paid to senior executives, the metrics used to justify these payments, the Postal Service's financial performance, and national and district-level service performance data. Additionally, the Postal Service's Inspector General is mandated to review this report to ensure compliance with the new bonus limitations.