Senator Josh Hawley (R-Mo.) has announced plans to introduce the 'No Bonuses for Bad Service Act,' a bill aimed at prohibiting the U.S. Postal Service (USPS) Board of Governors from awarding additional compensation to the postmaster general and deputy postmaster general in any fiscal year where the agency fails to achieve an on-time delivery rate of at least 95% for all mail products [1]. Hawley cited years of significant financial losses and declining delivery performance as the impetus for the legislation, noting that the USPS has incurred $25 billion in losses over the past three fiscal years, a period that also saw increased postage rates and reduced on-time delivery [1].
According to Hawley, postmasters general have received over $2 million in bonuses during the last decade, despite worsening service and financial results [1]. Specifically, during the last three years of Louis DeJoy's tenure as postmaster general, more than $567,000 in bonuses were approved by the Board of Governors, while current Postmaster General David Steiner, who took office in July 2025, has already received $170,000 in bonuses [1]. Hawley confronted Steiner about these payments during a June 24 hearing, to which Steiner responded that he does not control the distribution of bonuses [1].
Hawley has also launched an investigation into the USPS, accusing Steiner of ignoring congressional oversight and demanding records related to the agency's use of outside restructuring consultants [1]. The senator highlighted ongoing service issues, including reports of rural Missouri residents waiting weeks for mail and a large pile of undelivered mail discovered in a vacant lot in north St. Louis in April [1]. Hawley emphasized that as service has declined, executive compensation has not, stating, 'The pattern is clear: As service has gotten worse, the postmaster general’s pay has not' [1].
No market reaction or analyst opinions were discussed in the article. The proposed legislation and ongoing investigation signal potential changes in USPS executive compensation policies and increased congressional scrutiny of the agency's operations [1].
CONCLUSION
Sen. Hawley's proposed bill targets USPS executive bonuses in response to ongoing mail delays and substantial financial losses. The legislation, coupled with an active investigation, underscores heightened congressional oversight and could lead to significant changes in USPS leadership compensation practices.