By David Shepardson

WASHINGTON (Reuters) – A U.S. The Friday effect of the USPS plan to reduce first-class mail delivery is part of an effort to cut red ink. This comes as Congress considers a financial aid package to help the cash-strapped Post Office.

These new standards were approved in August and reduce the time it takes to deliver first-class mail from one-to-three days to one-to five days.

About 7% of periodicals will experience slower delivery standards. Major U.S. companies are sending notices to customers advising them that they should allow extra time for mailing their bills.

USPS advises customers to allow extra time for long-distance mail, if necessary.

USPS will also temporarily increase the prices of some packages shipments beginning Oct. 3, in anticipation of peak holiday season 2021.

Louis DeJoy proposed in March that $160 billion of losses would be reduced over the next decade. The key component to this plan was the change in standards for service.

The USPS has had poor performance in delivery over the last year. They have been facing huge increases in package deliveries and problems with staffing due to COVID-19.

USPS increased the price of first-class stamps by 58c to 55c in August.

Since 2007, USPS has posted net losses exceeding $90 billion. The reason? 2006 legislation that required USPS to pre-fund $120 billion of pension and retiree benefits. This is a burden labor unions consider unfair.

The Congress will consider a plan that would provide $46 billion of financial relief to the USPS over 10 years. This includes eliminating the 75-year requirement for USPS to pre-fund retirement health benefits.

In a Wednesday note, Daniel Heins, President of United Postmasters and Managers of America, stated that the House Oversight and Reform Committee approved the postal reform bill in May. The Ways and Means Committee is currently reviewing the bill.

Heins stated that once the panel approves it, “we have the commitment of leadership in the House of Representatives to bring it before the floor for a voting,” and this is scheduled for October.