President Joe Biden signed the Postal Service Reform Act of 2022 on Wednesday as lawmakers stood around him and cheered after it was ratified.
Congress passed the bill, which requires six-day-a-week mail delivery, in March. Biden quipped how it took years to get the much-needed legislation passed.
The long-fought postal overhaul has been a while in the making and it comes amid widespread complaints about mail service slowdowns.
Officials have repeatedly warned that without congressional action the Postal Service would run out of cash by 2024.
To improve its finances, the bill would lift unusual budget requirements that have contributed to its red ink. It requires mail carriers to enroll in Medicare when they become eligible. Currently, they receive costly health plans when they retire.
The legislation also eliminates a mandate that forced the agency to pre-fund retiree health benefits, which postal service leaders told Congress was unfair and costly since most government agencies don't have to do that. Those changes are expected to save around $50 billion.