1 Government Relations Update MTAC April 29, 2009

2 Administration and Congressional Leadership Priorities  Economy, Financial Regulation, President's Budget Health Care, Climate Change, Immigration  USPS #1 Legislative Priority for 2009: Retirement Health Benefit funding change  Changing payment stream now saves USPS $2 billion in FY 2009, alone

3 Retiree Health Benefits Status House  H.R. 22 introduced Jan. 6, 2009 by Congressmen John McHugh (R-NY) and Danny Davis (D-IL)  H.R. 22 has 285 co-sponsors as of April 29, 2009  Strong support, co-sponsors:  Henry Waxman (D-CA)  House Postal Subcommittee Ranking Member Jason Chaffetz (R-UT)  Chairmen Towns and Lynch are not co-sponsors  PMG and BOG targeted hill visits Senate  Working w/ Senators Tom Carper (D-DE), Susan Collins (R-ME), Joe Lieberman (I-CT) on bill  House and Senate working to resolve scoring implications language  Differences remain regarding two or eight year relief  Government Relations staff number one issue  PMG and BOG targeted hill visits

4 Other Legislative Issues  #1 Legislative priority of USPS- Retiree Health Benefits  PMG Potter stated at recent Congressional hearings need for significant structural changes at USPS – including five-day delivery  Appropriations rider mandates that USPS continue to provide six-day delivery  As we think about changes in our business, including delivery and operations model, everything is on the table  Need to focus on growth – rebounding from recession

5 Do Not Mail  Continues to be a popular state legislative initiative despite economy  In 2009, DNM legislation introduced in CT, FL and NY. To date, none of the bills appear to be under active consideration.  Latest hot issue: San Francisco Board of Supervisors non-binding resolution urging creation of DNM Registry in CA and a national DNM Registry. Resolution was forwarded to CA legislature and CA’s Congressional Delegation for consideration.

6 Do Not Mail Government Relations working with:  Corporate Communications and specific District and Area personnel to deal with specific DNM activity  Environmental and consumer organizations, and with external environmental stakeholders, to promote USPS’ strong environmental record  Mailers and industry groups on promoting and enhancing the value of mail, minimizing its impact on the environment, and being responsive to consumer interests