A substantive modification to the criteria for bonus eligibility for the Postmaster General and Deputy Postmaster General. v2 expands the conditions under which these officials cannot receive bonuses, adding a financial performance metric related to deficits alongside the existing on-time delivery performance requirement. This change introduces a new hurdle for bonus approval.
No Bonuses for Bad Service Act
- Sponsor
- Sen. Hawley, Josh [R-MO]
- Committees
- Homeland Security and Governmental Affairs Committee (primary)
- Last action
- Sep 14, 2026
Bottom line
This bill ties the eligibility for bonuses for the top USPS executives directly to specific performance metrics related to on-time mail delivery and the Postal Service's financial management.
What it actually does
This bill amends Title 39, United States Code, to prohibit the Postmaster General and Deputy Postmaster General from receiving bonuses or other monetary compensation beyond basic pay for any fiscal year in which the United States Postal Service (USPS) fails to meet a 95% on-time delivery target for each market-dominant product category. Additionally, the reported amendment adds a condition that bonuses are prohibited if the USPS's deficit increased from the prior fiscal year, or if it ran a deficit after a prior surplus. It also requires USPS performance reports to be submitted to the Postal Regulatory Commission.
Proponents argue
Supporters argue this bill significantly increases accountability for USPS leadership, directly incentivizing better mail delivery performance and more responsible fiscal management. They contend that linking executive compensation to these critical outcomes will ultimately benefit the public, who rely on timely and efficient postal services, and ensure greater stewardship of a vital public institution.
Opponents contend
Opponents might argue that tying executive bonuses to such strict and potentially volatile metrics could disincentivize long-term strategic investments or risk-taking necessary for modernizing the USPS. They may also contend that external factors beyond leadership's immediate control, such as economic downturns or unforeseen operational challenges, could unfairly prevent bonuses, potentially making it harder to attract and retain top talent for these crucial roles.
The bill is very short and its provisions are clearly stated, making it highly accessible for public scrutiny and understanding within a short timeframe.
Section 2(a)(1) and (2) of the amended bill, amending Section 202(c) and (d) of title 39
Prohibiting Bonuses for Failure to Meet On-Time Delivery Targets
This provision mandates that the Governors of the Postal Service cannot approve any bonus, award, or other monetary compensation beyond basic pay for the Postmaster General or Deputy Postmaster General. This prohibition applies for any fiscal year in which the USPS does not achieve at least 95% on-time delivery performance for each on-time delivery target set for a market-dominant product category.
Supporters argue
Supporters argue this provision directly links executive pay to core service performance, ensuring that leadership is held accountable for timely mail delivery, which is a fundamental expectation of the public and crucial for commerce. It provides a clear incentive for operational excellence.
Critics contend
Critics might contend that a 95% target across *each* market-dominant product category is overly stringent and may not adequately account for unforeseen operational challenges, natural disasters, or other external factors beyond leadership's control, potentially penalizing executives unfairly.
Tradeoffs
This provision balances the desire for strong executive accountability with the complex operational realities of a vast public service entity. It creates tension between financial incentives and the challenges of achieving perfect performance across diverse service categories.
Section 2(a)(1) and (2) of the amended bill, amending Section 202(c) and (d) of title 39
Prohibiting Bonuses for Worsening Fiscal Deficits
This provision, added by amendment, prevents the Postmaster General and Deputy Postmaster General from receiving bonuses if the Postal Service's deficit exceeded the deficit from the prior fiscal year. It also prohibits bonuses if the USPS ran a deficit in a fiscal year where it had achieved a surplus in the immediately preceding fiscal year. This aims to link executive compensation to the financial health and management of the USPS.
Section 2(b) of the amended bill, amending Section 2804(a) of title 39
Mandating Performance Report Submission to Postal Regulatory Commission
This provision amends existing law to require that the annual performance reports, which detail the Postal Service's operational and financial performance, be submitted to the Postal Regulatory Commission (PRC). This change enhances the PRC's oversight capabilities and increases transparency regarding USPS operations.
The reported bill includes an amendment that significantly expands the conditions under which the Postmaster General and Deputy Postmaster General would be ineligible for bonuses. The original bill text only included the condition related to not meeting on-time delivery targets. The amendment adds a second, distinct condition: if the Postal Service's deficit exceeded the prior fiscal year's deficit, or if it ran a deficit after a prior surplus.
The italicized text in Section 2(a)(1) and (2) of the reported bill, amending Section 202(c) and (d) of title 39
Why it matters:This is standard legislative practice for showing changes made by a committee. While not intentionally evasive, the format requires careful reading to identify the specific additions and their implications, especially when the bill's title does not fully reflect the scope of the amended text.
Case for: Supporters of this amendment argue that it strengthens accountability by linking executive bonuses not just to service quality but also to the financial health of the USPS. This broader scope addresses a wider range of performance issues and encourages more holistic management of the agency's operations and budget.
Case against: Critics might argue that adding a financial performance metric, especially one tied to year-over-year deficit changes, introduces additional complexity and potentially unfair conditions. They may contend that the USPS's financial situation is influenced by numerous factors beyond executive control, making it an imperfect measure for bonus eligibility.
Estimated impact: This amendment significantly broadens the conditions under which the Postmaster General and Deputy Postmaster General would be ineligible for bonuses, potentially increasing the frequency of bonus denials and placing greater emphasis on the agency's fiscal outcomes.