H.R. 5416: Contract Postal Unit Transparency Act
Sponsor
George Whitesides
Democrat · CA-27
Bill Progress
Latest Action · Sep 16, 2025
Referred to the House Committee on Oversight and Government Reform.
Your local postal counter shouldn't disappear without warning
Why it matters
Contract postal units are the postal counters tucked inside grocery stores, pharmacies, and general stores — in plenty of small towns, the closest place to buy stamps or ship a package. Today, USPS can end one of these contracts without much public process. H.R. 5416 would require a public hearing, online impact reports, and a 180-day waiting period before any contract postal unit closes — at least six months of warning between the hearing and the day the counter goes dark.
A contract postal unit is a postal counter operated by a private business — a general store, a pharmacy, a supermarket — under contract with the Postal Service. These counters sell stamps, accept packages, and often serve as the main postal access point in rural areas and small towns where a full post office is miles away.
H.R. 5416, the Contract Postal Unit Transparency Act, doesn't stop USPS from closing these counters. It makes the process public and slow. Before closing or consolidating a contract postal unit, USPS would have to publish a report on its website describing how customers will be affected and what it will do to keep postal services reachable in the area. It would also have to send Congress a separate report explaining why the unit is closing.
Then comes the hearing. USPS would have to hold a public hearing on the closure, open to any affected member of the public, in person or virtually. Within 7 days of the hearing, USPS would have to post a summary online — including the percentage of comments that supported the closure and the percentage against it. Local opposition becomes a public, numeric record.
The waiting period is the bill's hard stop: the unit can't close until at least 180 days after that summary goes up. Add it together and a closure takes a minimum of about six months from hearing to shutdown — time for a community to push back, find alternatives, or get its representatives involved. The new rules would apply to closures starting six months after the bill becomes law.
H.R. 5416 Bill Summary
What H.R. 5416 actually does.
A public hearing before any counter closes
Before closing or consolidating a contract postal unit, USPS must hold a public hearing, and any affected member of the public must be allowed to attend in person or virtually.
Public support and opposition get tallied and published
Within 7 days of the hearing, USPS must post a summary on its public website describing the comments made or submitted, including the percentage in support of the closure and the percentage against it.
At least 180 days between the summary and the shutdown
A contract postal unit cannot be closed or consolidated until at least 180 days after the hearing summary is published — the bill's firm waiting period.
An impact report posted online first
USPS must publish a report on its public website describing the expected impacts on customers and the steps it will take to ensure continued access to postal services in the affected area.
Congress gets the reasons in writing
USPS must submit a separate report to Congress explaining the reasons for closing or consolidating the contract postal unit.
Rules take effect six months after enactment
The requirements apply to closures or consolidations occurring on or after the date six months after the bill becomes law, giving USPS a lead-in period before compliance starts.
Who benefits from H.R. 5416?
Customers of contract postal units
People who rely on a postal counter inside a local store would get a published impact report, a public hearing, and at least 180 days of warning before the counter closes — instead of finding out after the fact.
Small towns and rural communities
Where the contract postal unit is the only nearby postal access, the bill turns a quiet contract decision into a public process with time built in to organize a response or line up alternatives.
People who can't travel to a hearing
The bill requires that affected members of the public be allowed to attend the closure hearing virtually, so participation doesn't depend on being able to show up in person.
Members of Congress
Lawmakers receive a written report from USPS explaining the reasons for each covered closure, creating an oversight record that doesn't exist under current practice.
Who is affected by H.R. 5416?
United States Postal Service
USPS takes on new procedural duties for every contract postal unit closure: an online impact report, a report to Congress, a public hearing, a summary published within 7 days, and a 180-day wait before the closure can happen.
Businesses that operate contract postal units
Stores hosting a postal counter would see closure timelines stretch by months, which extends the period of uncertainty between a closure decision and the actual end of the contract.
Communities facing a closure
Affected communities would receive advance notice, a formal venue to comment, and a published record of local support and opposition — though the bill does not require USPS to change course based on that input.
HR5416 Legislative Journey
House: Committee Action
Sep 16, 2025
Referred to the House Committee on Oversight and Government Reform.
About the Sponsor
George Whitesides
Democrat, California's 27th congressional district · 1 years in Congress
Committees: Science, Space, and Technology, Armed Services
View full profile →
Cosponsors (3)
This bill has 3 cosponsors: 2 Democrats, 1 Republican, reflecting bipartisan support. Cosponsors represent 3 states: Georgia, Indiana, Oregon.
Committee Sponsors
Oversight and Government Reform Committee
0 of 47 committee members cosponsored
No committee members have cosponsored this bill
21 Democrats across this committee haven't cosponsored yet. Mobilize their constituents
H.R. 5416 Quick Facts
- Committee
- Oversight and Government Reform
- Chamber
- House
- Policy
- Government Operations and Politics
- Introduced
- Sep 16, 2025
Referred to the House Committee on Oversight and Government Reform.
Sep 16, 2025
Official Sources
The official bill page with full text, status, sponsor, cosponsors, and every legislative action on the Contract Postal Unit Transparency Act.
The statute H.R. 5416 amends — the bill adds a new subsection (f) to section 404 establishing the hearing, reporting, and 180-day waiting requirements.
USPS's official description of contract postal units — the supplier-operated postal counters inside private businesses that this bill's closure rules would cover.
The Inspector General's 2023 audit of the roughly 2,500 contract postal units and village post offices, documenting a nearly 20 percent decline in these locations in recent years.
The independent federal regulator that oversees the Postal Service, including the existing closure-review process for full post offices that this bill echoes for contract units.
The Postal Service's ten-year restructuring plan driving the network consolidation that forms the backdrop for this bill's transparency requirements.
H.R. 5416 Common Questions
What is a contract postal unit?
It's a postal counter run by a private business — a general store, pharmacy, or supermarket — under contract with USPS. It sells stamps and accepts packages, and in many rural areas it's the closest postal access point. H.R. 5416 covers closures of these units.
Does H.R. 5416 ban USPS from closing contract postal units?
No. USPS can still close or consolidate them — but only after publishing an impact report, reporting to Congress, holding a public hearing, posting a hearing summary, and waiting 180 days after that summary goes up.
How long would USPS have to wait before closing a contract postal unit?
At least 180 days after it publishes the hearing summary online. Counting the hearing and the 7-day summary deadline, a closure would take a minimum of about six months from hearing to shutdown.
Can I attend a postal unit closure hearing online?
Yes. H.R. 5416 requires that any affected member of the public be allowed to attend the hearing either in person or virtually.
What would USPS have to publish before closing a postal counter?
Two things on its public website: a report on how the closure will affect customers and what USPS will do to keep postal services reachable in the area, plus — within 7 days of the public hearing — a summary describing the comments made or submitted.
Would public opposition to a closure be made public?
Yes. The hearing summary USPS posts online must state the percentage of comments that supported the closure and the percentage against it — a public, numeric record of local reaction. The bill doesn't require USPS to change its decision based on those numbers.
Does Congress get told why a contract postal unit is closing?
Yes. H.R. 5416 requires USPS to submit a report to Congress explaining the reasons for each closure or consolidation, separate from the public website report.
When would the new closure rules take effect?
They'd apply to closures or consolidations happening on or after the date six months after the bill becomes law — so USPS gets a lead-in period before the requirements kick in.
Based on H.R. 5416 bill text
H.R. 5416 Bill Text
“To amend title 39, United States Code, to modify the procedures used by the United States Postal Service for the closure or consolidation of contract postal units, and for other purposes.”
Source: U.S. Government Publishing Office
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