Finances and Rates

The act established an independent Postal Rate Commission of five members, appointed by the U.S. President with the advice and consent of the U.S. Senate, to recommend postal rates and mail classifications for adoption by the Postal Service Governors. It authorized the Postal Service to borrow money from the general public and phased out the general public service subsidy, which the Postal Service ended earlier than required, last accepting an operational subsidy in 1982. It also authorized appropriations to reimburse the Postal Service for carrying congressionally established categories of free and reduced-rate mail and required that rates for each class of mail cover direct and indirect costs attributable to that class, plus a portion of institutional costs.