PERFORM Act
- Sponsor
- Sen. Britt, Katie Boyd [R-AL]
- Committees
- Homeland Security and Governmental Affairs Committee (primary)
- Last action
- Aug 3, 2026
Bottom line
The PERFORM Act aims to increase accountability for the Postmaster General by directly linking their performance-based compensation to the financial health, service quality, and reporting compliance of the U.S. Postal Service.
What it actually does
This bill, known as the PERFORM Act, amends title 39 of the United States Code to prohibit the Postmaster General from receiving any bonus, incentive award, retention payment, or other performance-based compensation if the Postal Service fails to meet specific financial or service performance targets, receives an adverse financial audit, or fails to submit a required annual report to Congress. It also mandates an annual report from the Postmaster General to Congress detailing executive compensation and performance, and requires the Inspector General of the Postal Service to review this report for compliance.
Proponents argue
Supporters argue that this bill will enhance accountability for the Postmaster General and the Postal Service, ensuring that executive compensation is directly tied to the organization's performance. They contend that it will incentivize better financial management, improved nationwide service, and greater transparency, ultimately benefiting taxpayers and postal customers by fostering a more efficient and responsible Postal Service.
Opponents contend
Critics might argue that overly rigid compensation limitations could hinder the Postal Service's ability to attract and retain top executive talent for a highly complex and challenging role. They may also contend that the specified metrics might not fully capture the nuances of USPS operations or could disincentivize necessary long-term strategic investments that might negatively impact short-term financial or service targets.
The bill is very short and clearly written, allowing for quick and complete comprehension by any informed reader.
Section 2(e)(1) of title 39, United States Code (as amended)
Prohibition on Performance-Based Compensation for Postmaster General
This provision prohibits the Board of Governors from awarding any bonus or performance-based compensation to the Postmaster General if, in the preceding fiscal year, the Postal Service's total costs exceeded its total revenue, it failed to meet nationwide service performance targets, received a material weakness or adverse opinion in its financial audit, or failed to submit a required report to Congress. This directly ties the Postmaster General's incentive pay to key organizational performance indicators.
Supporters argue
Supporters argue that this provision ensures strong accountability for the Postmaster General, directly linking their personal financial incentives to the overall health and performance of the Postal Service. They believe it will drive better management decisions and more efficient operations, ultimately benefiting the public.
Critics contend
Critics might contend that such rigid conditions could make it challenging to attract and retain highly qualified individuals for the Postmaster General role, especially given the complex financial and operational challenges facing the USPS. They may also argue that some performance metrics might be influenced by factors beyond the Postmaster General's direct control.
Tradeoffs
This provision navigates the tension between demanding high levels of accountability from a public servant and ensuring that the compensation structure remains attractive enough to secure top leadership talent capable of managing a vast and critical national service.
Section 2(e)(2) of title 39, United States Code (as amended)
Annual Report to Congress on Executive Compensation and Performance
This section mandates that the Postmaster General submit an annual report to Congress within 30 days after the end of each fiscal year. This report must detail all bonuses and performance-based compensation paid to senior executives, the specific performance metrics used to justify these payments, the Postal Service's financial performance for the preceding year, and national and district-level service performance data.
Section 2(e)(3) of title 39, United States Code (as amended)
Inspector General Review of Compensation Report
This provision requires the Inspector General of the Postal Service to review the annual report submitted by the Postmaster General to Congress. The purpose of this review is to determine whether the Postal Service has complied with the requirements of the bonus limitation subsection, adding an independent layer of verification and accountability.