severely affected. Two Postal Service employees died of anthrax infection. Mail services in some areas were curtailed; two mail processing facilities had to be closed for the long term because of anthrax contamination; and mail volume declined.

     The Postal Service's viability and its value to the American people depend upon an open and accessible mail system. Following the anthrax attacks, it was critical that the Postal Service put in place new and enhanced technology applications and process changes that could enhance the safety of the mail system and reduce risks to both employees and customers.

     Shortly after the initial bioterrorist attacks, the President of the United States authorized an initial funding of $175 million for 2002 to assist in paying for these safety measures. In November 2001, Congress appropriated an additional $500 million to "protect postal employees and postal customers from exposure to biohazardous material, to sanitize and screen the mail and to replace or repair postal facilities destroyed or damaged in New York City as a result of the September 11, 2001, terrorist attacks." Postal Service use of the funds provided by this appropriation was contingent on the submission of an emergency preparedness plan to combat the threat of biohazards in the mail. The Postal Service submitted the required Emergency Preparedness Plan to Congress in March 2002.

     In August 2002, Congress appropriated an additional $87 million for emergency expenses, as detailed in the Postal Service's Emergency Preparedness Plan, to be incurred by the Postal Service, to further protect Postal Service employees and customers from exposure to biohazardous material and to sanitize and screen the mail.

     The Postal Service recorded the balance of $583 million as a current liability. The liability will be reduced as expenses are incurred and as an offset to depreciation expense over the life of the equipment.

     All funding will remain available until expended. The Postal Service is required to submit quarterly expenditure plans on the

obligation of all 2002 supplemental appropriations, as well as annual updates of the Emergency Preparedness Plan.

     In 1997, Congress authorized the issuance of the first semipostal stamp for the specific purpose of raising funds from the American public to assist in finding a cure for breast cancer. The stamp currently is sold for 45 cents and is valid for the current cost of a one-ounce single-piece First-Class Mail letter. Congress directed that the difference between the price of the stamp and the First- Class Mail rate, less program costs, be directed to two designated research agencies, the National Institutes of Health and the Department of Defense Medical Research Program. In accordance with the law, the General Accounting Office has reviewed this program.

     From program inception through the end of 2003, approximately 484.7 million Breast Cancer Research stamps have been sold. Five years of sales raised a net voluntary contribution of $34.5 million.

     The costs associated with the Breast Cancer Research stamp include design, printing, packaging, advertising, promotion, training, legal fees, market research, programming for retail automation, and receipt printing costs. The Postal Service deducts selected incremental costs from Breast Cancer Research stamp revenues and then pays the proceeds to the research agencies. Through the end of 2003, approximately $0.8 million has been withheld to cover these incremental costs.

     The Heroes of 2001 semipostal stamp, authorized by legislation enacted by Congress in 2001, provides assistance to the families of emergency relief personnel killed or permanently disabled in connection with the terrorist attacks of September 11, 2001. The stamp was issued in New York City on June 7, 2002, and sells for 45 cents. Like the Breast Cancer Research stamp, it is valid for the current cost of a one-ounce single-piece First-Class Mail letter. It will be offered for sale through December 31, 2004.

     Since inception, 105.2 million Heroes of 2001 stamps have been sold. This has resulted in a contribution of $8.6 million to the Federal Emergency Management Agency, which is responsible for disbursing payments to eligible recipients. The Postal Service has recovered costs of $0.3 million.