Central South Dakota News

U.S. Senators Mike Rounds (R-S.D.) and Peter Welch (D-Vt.) introduced the bipartisan Deliver for Democracy Act on May 21, 2024. The legislation aims to support rural newspaper delivery by incentivizing reliable postal service and limiting excessive rate increases.

In recent years, the U.S. Postal Service (USPS) has consistently raised rates for periodicals, citing increased efficiency and improved service. However, local news outlets have not experienced these benefits and continue to face persistent postal delays.

“Local journalists work hard every day to deliver news on a timely basis, and the U.S. Postal Service should too,” said Rounds. “Periodical rates have cumulatively increased by over 40 percent since August 2021. Meanwhile, the Postal Service’s on-time delivery performances have not improved, leaving local journalists to pick up the slack by handling delivery on their own in order to make certain their readers receive their papers on time. Our common sense bipartisan legislation helps protect rural newspapers and consumers from unjustified price hikes by making certain USPS is held to a standard for on-time deliveries.”

“A vibrant and healthy local press has always been a defining feature of American democracy. Today, local news offers a crucial alternative to online information ecosystems, which are too often distorted by algorithms that amplify disinformation and confine readers to inescapable echo chambers,” said Welch. “But surging rate increases and poor service jeopardize local news outlets’ ability to reach readers and supply the information so essential to an engaged citizenry and a vibrant democracy. It’s time for USPS to remember its mission and meet the media’s basic needs.”

The Deliver for Democracy Act is cosponsored by Senators Kevin Cramer (R-N.D.), Amy Klobuchar (D-Minn.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), and Ron Wyden (D-Ore.).

The bill has received endorsements from several organizations including the South Dakota NewsMedia Association, the National Newspaper Association, and News/Media Alliance.

“The members of South Dakota NewsMedia Association are appreciative of Senator Rounds for sponsoring this important legislation,” said Dave Bordewyk, Executive Director of the South Dakota NewsMedia Association. “SDNA members view the U.S. Postal Service as a strategic partner in delivering their newspapers to readers. However, declining delivery and service coupled with double-digit rate increases over the last few years are unsustainable for our members.”

“Our members are being forced to cope with unsustainable rates from the monopoly postal system,” said Danielle Coffey, President & CEO of News/Media Alliance. “If something doesn’t change soon, they will be put out of business and residents will see more news deserts.”

“NNA applauds the introduction of the ‘Deliver for Democracy Act.’ This bill highlights the responsibility of USPS to accurately measure the service newspapers receive,” said John Galer, Chairman of National Newspaper Association.

BACKGROUND:

In January 2021, the U.S. Postal Regulatory Commission adopted regulations establishing three additional forms of rate authority for non-compensatory classes of mail such as periodicals and package services. Under these regulations, USPS can apply an additional two percentage points of rate authority where costs exceed revenue.

Despite significant rate increases exceeding 40%, USPS has failed to meet periodicals' basic needs or achieve its outlined 95% on-time delivery performance standard.

The Deliver for Democracy Act would:

- Require USPS to achieve at least a 95% on-time delivery rate for periodicals or improve by at least two percentage points before unlocking its 2% surcharge authority.

- Direct USPS to report annually on its progress including on-time delivery data.

- Instruct the Government Accountability Office to study alternate pricing schemes for improving periodicals' financial position.