S. 5373Senate119th Congress (2025-2027)In Committee

USPS Executive Benefit and Bonus Removal Act

Introduced August 7, 2026

AI-Generated Summary

Updated August 18, 2026 at 5:52 AM UTC

The USPS Executive Benefit and Bonus Removal Act would tighten pay rules for senior USPS leaders. It caps the total compensation of any postal executive at the President’s salary and bars a range of extra perks for those executives. The bill also stops the Postmaster General from receiving bonuses in years when the Postal Service spends more than it takes in, while leaving regular employee benefits unchanged.

Key Provisions

  • Defines “covered executive officers” (Postmaster General, Deputy, senior career executives) and prohibits them from receiving listed fringe benefits such as wellness reimbursements, parking allowances, personal financial advisory services, travel program fees, club memberships, relocation bonuses, and premium‑class air travel.
  • Requires any executive who receives a prohibited benefit after the law takes effect to reimburse the Postal Service for its fair market value.
  • Sets a compensation ceiling: no postal officer or employee may earn more than the President’s salary, and bans any bonus or deferred compensation used to get around that limit.
  • Bars the Governors from approving any bonus or extra monetary award to the Postmaster General in fiscal years when USPS expenditures exceed its revenues.
  • Clarifies that the restrictions do not affect similar benefits available to non‑executive employees, collective‑bargaining‑unit benefits, or other compensation covered by separate statutes.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure: CR S4567-4568)

August 7, 2026

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SenateIntro Referral

Introduced in Senate

August 7, 2026

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (Sponsor introductory remarks on measure: CR S4567-4568)

August 7, 2026

Floor Debate

7 members

What members said about S. 5373 on the floor

7 Republicans
Marsha Blackburn
Sen. Marsha BlackburnR-TN · Aug 7, 2026

Mr. President, this week, I had the honor of voting for Todd Blanche as he was coming out of the Judiciary Committee and advancing that nomination. Having worked with him over the past year or so, I…

Mike Rounds
Sen. Mike RoundsR-SD · Aug 7, 2026

Mr. President, I rise today to express my concerns with the U.S. Postal Service operations in South Dakota, my home State. Over the past year or so, my team has heard from thousands of South Dakotans…

Mike Rounds
Sen. Mike RoundsR-SD · Aug 7, 2026

Mr. President, I rise today to express my concerns with the U.S. Postal Service operations in South Dakota, my home State. Over the past year or so, my team has heard from thousands of South Dakotans…

John Thune
Sen. John ThuneR-SD · Aug 7, 2026

Mr. President, just before I begin my remarks, I would associate myself with the remarks of my colleague from South Dakota pertaining to the Postal Service and their work in South Dakota. If there…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Aug 7, 2026

Mr. President, later today, I hope the Senate will vote to confirm the nomination of Todd Blanche to be Attorney General. I support his nomination, and I urge my colleagues to vote for him. Mr.…

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Ashley Moody
Sen. Ashley MoodyR-FL · Aug 7, 2026

Mr. President, I rise today to urge this esteemed body into action. I know that we are on the verge of a planned, long State work period and that many of my colleagues are looking forward to being…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Aug 7, 2026

Mr. President, later tonight, my colleagues will be asked to pass the continuing resolution before us to prevent a government shutdown. As chair of the Senate Appropriations Committee, I worked with…

Jerry Moran
Sen. Jerry MoranR-KS · Aug 7, 2026

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, today--this afternoon--the Senate took a really important step to strengthen our national…

John Thune
Sen. John ThuneR-SD · Aug 7, 2026

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mike Rounds
Sen. Mike RoundsR-SD · Aug 7, 2026

I yield the floor.

Bill Text

Latest available legislative text

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Introduced in SenateIssued August 7, 2026

II

119th CONGRESS

2d Session

S. 5373

IN THE SENATE OF THE UNITED STATES

August 7, 2026

Mr. Rounds introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To amend title 39, United States Code, to limit the compensation and benefits provided to executive officers of the Postal Service, and for other purposes.

1.

Short title

This Act may be cited as the USPS Executive Benefit and Bonus Removal Act.

2.

Prohibition of Certain Executive Fringe Benefits

Section 1003 of title 39, United States Code, is amended by adding at the end the following:

(e)

Limitation of Executive Fringe Benefits

(1)

Definitions

In this subsection:

(A)

Covered Executive Officer

The term covered executive officer

(i)

means the Postmaster General, the Deputy Postmaster General, any Postal Service officer or employee serving in a Postal Career Executive Service position at level II or above, or any successor executive pay classification; and

(ii)

does not include the Inspector General of the Postal Service.

(B)

Deferred Compensation

The term deferred compensation includes any nonqualified deferred compensation arrangement, supplemental executive retirement plan, or similar arrangement under which compensation is earned in one period but paid in a later period, whether or not subject to section 409A of the Internal Revenue Code of 1986.

(C)

Fringe Benefit

The term fringe benefit includes the following:

(i)

A wellness reimbursement or similar wellness incentive payment, unless offered on substantially the same terms to substantially all career employees of the Postal Service.

(ii)

Parking or a parking allowance, except space made available on the same terms as to non-executive employees at the same duty station.

(iii)

Financial planning, tax preparation, estate planning, or similar personal financial advisory services.

(iv)

Retirement counseling services, unless offered on substantially the same terms to substantially all career employees of the Postal Service.

(v)

Reimbursement for enrollment or renewal fees for TSA PreCheck, Global Entry, CLEAR, or any similar trusted traveler or expedited-screening program.

(vi)

Membership dues or fees for any airline club, airport lounge program, hotel loyalty tier, or similar travel-amenity program.

(vii)

Any relocation expense, allowance, bonus, or benefit provided in connection with, or in anticipation of—

(I)

the hiring, appointment, or commencement of service of the officer;

(II)

the retirement or separation from service of the officer; or

(III)

any other change in the officer's status with the Postal Service.

(2)

Limitation on fringe benefits

Notwithstanding subsection (a) or any other provision of law, the Postal Service may not provide, pay for, or reimburse, directly or indirectly, on behalf of any covered executive officer, any fringe benefit.

(3)

Exception for official travel

Paragraph (2) may not be construed to prohibit reimbursement of ordinary and necessary travel expenses incurred in the performance of official duties, consistent with applicable Federal travel regulations.

(4)

No Circumvention

(A)

No substitutes

The Postal Service may not provide a covered executive officer with increased base pay, a bonus, deferred compensation, or any other form of current or deferred compensation, that is designated, in whole or in part, as a substitute for a benefit prohibited under paragraph (2).

(B)

No limitation on base pay

Nothing in this paragraph limits the authority of the Postal Service to set base pay under subsection (a).

(5)

Reimbursement Required

A covered executive officer who receives a benefit prohibited under paragraph (2) after the effective date of this subsection shall reimburse the Postal Service for the fair market value of such benefit.

(6)

Prohibition on Premium-Class Air Travel

(A)

In general

Notwithstanding subsection (a) or any other provision of law, the Postal Service may not pay for, reimburse, or otherwise provide, directly or indirectly, first-class or business-class air travel accommodations for any covered executive officer.

(B)

Reimbursement Required

A covered executive officer who receives air travel accommodations prohibited under subparagraph (A) after the effective date of this subsection shall reimburse the Postal Service for the value of such accommodations.

.

3.

Limit on Compensation

Section 1001 of title 39, United States Code, is amended by adding at the end the following:

(f)

Limit on Compensation

(1)

Limit

No officer, executive, or employee of the Postal Service may receive compensation greater than that of the President under section 102 of title 3.

(2)

No Circumvention

The Postal Service may not provide a covered executive officer (as defined in section 1003(e) of this title) with a bonus, deferred compensation, or any other form of current or deferred compensation in order to circumvent the compensation limit set in paragraph (1).

.

4.

Restriction on Bonuses for Postmaster General

Section 202 of title 39, United States Code, is amended in subsection (c) by—

(a)

striking The and inserting—

(1)

Powers of the Governors

The

; and

(b)

adding at the end the following:

(2)

Limit on compensation

Notwithstanding the provisions of section 3686 of this title, the Governors shall not approve any bonus, award, or other monetary compensation beyond basic pay for the Postmaster General for any fiscal year in which the total expenditures of the Postal Service exceeded the revenues of the Postal Service (including both appropriated and non-appropriated funds).

.

5.

Rule of Construction

Nothing in this Act, or the amendments made by this Act, shall be construed to affect—

(1)

wellness, parking, or retirement-related benefits generally available to Postal Service employees who are not covered executive officers (as defined in section 1003(e) of title 39, United States Code, as amended by this Act);

(2)

any benefit provided to a bargaining-unit employee pursuant to a collective bargaining agreement entered into under chapter 12 of title 39, United States Code; or

(3)

any compensation described in section 423(b) of title 5, United States Code.