Supply Chain Crisis and Where is the Defense Production Act?

What is the Defense Production Act?

The Defense Production Act is the primary source of presidential authorities to expedite and expand the supply of materials and services from the U.S. industrial base needed to promote the national defense. DPA authorities are available to support: emergency preparedness activities conducted pursuant to title VI of the Stafford Act; protection or restoration of critical infrastructure; and efforts to prevent, reduce vulnerability to, minimize damage from, and recover from acts of terrorism within the United States. DPA authorities may be used to:

  • Require acceptance and preferential performance of contracts and orders under DPA Title I. (See Federal Priorities and Allocations System (FPAS).)
  • Provide financial incentives and assistance (under DPA Title III) for U.S. industry to expand productive capacity and supply needed for national defense purposes;
  • Provide antitrust protection (through DPA voluntary agreements in DPA Title VII) for businesses to cooperate in planning and operations for national defense purposes, including homeland security.

But national security? Yes. We remain the midst of the Covid 19 pandemic and those affected could and often are our protectors, not only medically but when it comes to legally or militarily.

While we are fretting over shortages and necessities in our daily lives there are two real areas of major concern, they are medicines and micro-chips (semiconductors) used for advanced technology of many varieties.

China Is Getting Ready to Take On the World's Biggest ...

Basic medicines in use either by prescription or over the counter are manufactured in Asia, mostly China that is. It is a fact we learned in the early days of the pandemic. Imagine now that we are faced with a shortage of antibiotics, insulin, aspirin or Lasix and Dyazide. Could we once again face personal protection equipment shortages?

DOD Announces $74.9 Million in Defense Production Act ...

When it comes to semiconductors, the following is important to know:

In part from a senate committee: To mitigate supply chain risks and ensure that semiconductors used in sensitive military systems do not have malware embedded in them, in 2004 the Department of Defense established the “Trusted Foundry Program.” Under this program the government identifies companies deemed secure and trustworthy enough to produce chips exclusively for the military. Two facilities currently operate under this program, one in Vermont and one in New York.

The program only produces a small percentage of the nearly 2 billion semiconductors DOD acquires each year. Some observers have expressed concern that the trusted foundries are falling behind technologically compared to commercial fabrication facilities in East Asia. This could leave the U.S. military at a technological disadvantage to China and other countries that buy superior chips.

In 2017, the Defense Advanced Research Projects Agency launched the Electronics Resurgence Initiative, which seeks to address market and technological trends and challenges in the microelectronics sector.

Sounds shaky right? It is as we need results and we need them now. So where is that order by the Biden administration for the Defense Production Act which would jump start real action in all the various reasons for the log jam at ports around the United States? There is no one single reason for the cargo ships being stacked up in Long Beach, Los Angeles, Port Houston, Savannah to name a few.

The United States can relieve the cargo pressures immediately by deploying the National Guard, signing waivers on regulations and by stopping all the financial payments that encourage people to simply not go to work.


The BBC reports in part: 

The shortages hitting countries around the world

A “perfect storm” in China is hitting shoppers and businesses at home and overseas.

It is affecting everything from paper, food, textiles and toys to iPhone chips, says Dr Michal Meidan from the Oxford Institute for Energy Studies.

She says these items “may end up being in short supply this Christmas”.

Then there is the Department of Transportation and the Secretary has been absent….his involvement in this?

Maritime administration –>

U.S. maritime ports are critical links in the U.S. domestic and international trade supply-chain.  Ports serve as centers of commerce where freight and commodities are transferred between cargo ships, barges, trucks, trains, and pipelines.

The Port Infrastructure Development Program supports the efficient movement of commerce upon which our economy relies through discretionary grant funding that helps strengthen, modernize, and improve our country’s maritime systems and gateway ports. Grants are awarded on a competitive basis and support the Nation’s long-term economic vitality.

Port Infrastructure Development grants provide planning, operational and capital financing, and project management assistance to improve port capacity and operations.

Authorization History

The Port Infrastructure and Development Program was authorized by Congress as part of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84). The legislation states that “The Secretary of Transportation, through the Maritime Administrator, shall establish a port infrastructure development program for the improvement of port facilities.”

The law specifically authorizes the Administrator to:

  1. Receive funds provided for the project from Federal, non-Federal, and private entities that have a specific agreement or contract with the Administrator to further the purposes of this subsection;
  2. Coordinate with other Federal agencies to expedite the process established under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for the improvement of port facilities to improve the efficiency of the transportation system, to increase port security, or to provide greater access to port facilities;
  3. Seek to coordinate all reviews or requirements with appropriate local, State, and Federal agencies; and
  4. Provide such technical assistance and financial assistance, including grants, to port authorities or commissions or their subdivisions and agents as needed for project planning, design, and construction.

The authorizing legislation also established a Port Infrastructure Development Fund for use by the Administrator in carrying out projects under the program. The fund is available for the Administrator to:

  1. Administer and carry out projects under the program;
  2. Receive Federal, non-Federal, and private funds from entities which have specific agreements or contracts with the Administrator; and
  3. Make refunds for projects that will not be completed.

There are also additional legislative provisions for the crediting and transfer of monies into the fund.

 

42 Reasons the $3.5 Trillion Spending Bill will Wreck America

Hat tip to Congressman Jim Banks and his colleagues:

TO: Republican Study Committee members

FROM: Chairman Jim Banks

DATE: October 12, 2021

RE: Reconciliation Roundup

Democrat's $3.5 Trillion Spending Bill Calls Mothers Both ...

RECONCILIATION ROUNDUP: Policies to Wreck America

TOPLINE: We as congressional Republicans have an urgent duty to tell the truth about what’s REALLY in the Democrats’ $3.5T big government socialist takeover and warn the American people what’s coming.

This bill is a disaster and should be polling at 20%. We all know it.

So, how can we explain the 5255% approval its garnered in the polls? The chief reason that it keeps polling favorably is because we haven’t done a good enough job letting the American people know what’s in it.

Here’s what happens to public opinion when the public learns what’s in these Democrat bills. In March, before Democrats’ $1.9 trillion package passed, 70% of Americans said they favored it. Polled again in August—five months after the bill was enacted, only 35% of Americans said the bill was helping improve the economy or will do so in the future.

To be fair, this is the Democrats’ strategy. They’ve played ‘hide the ball’ with the bill text so as not to tip off the public as to what they’re putting in their bills. Then, they bring it to the floor and tout some poll numbers and scare their members into voting for it.

Luckily, due to Democrats’ stalled legislative agenda, we have bill text and a window into their plan. If we effectively communicate about this bill, we’ll see those poll numbers drop.

I’ve directed staff at the Republican Study Committee to pore over the bill’s pages and produce for you a summary of the worst parts of the bill. Please read and share these points on social media, newsletters, opinion-editorials, and whatever other format you use to get your message out.

  1. Perpetuates labor shortage: Continues welfare benefits without work requirements for able-bodied adults without dependents at a time where there are 10.1 million job openings—more openings than there are people looking for work.
  2. Commissions a climate police: Democrats stuffed $8 billion into the bill to commission a cabal of federally funded climate police called the Civilian Climate Corps (CCC) who will conduct progressive activism on taxpayers’ dime (pages 821, and 926).
  3. Pushes Green New Deal in our public schools: Requires funding for school construction be used largely on enrollment diversity and Green New Deal agenda items (page 55).
  4. Pushes Green New Deal in our universities: Democrats include a $10 billion “environmental justice” higher education slush fund to indoctrinate college students and advance Green New Deal policies (page 1,935).
  5. Forces faith-based child care providers out: The bill blocks the ability of many faith-based providers from participating in the childcare system and will lead to many of their closures (page 280).
  6. Hurts small and in-home daycares: Requires pre-K staff to have a college degree. (page 303)
  7. Includes new incentives for illegal immigration: Illegal immigrants will be eligible to take advantage of Democrats’ new ‘free’ college entitlement (page 92) as well be eligible for additional student aid (page 147) and the enhanced child tax credit (page 1,946).
  8. Includes legislative hull for Biden’s vaccine mandate: Increases OSHA penalties on  businesses that fail to implement the mandate up to $700,000 per violation and includes $2.6 billion in funding for the Department of Labor to increase enforcement of these penalties (page 168).
  9. Gives unions near-total control: The bill includes insane prohibitions that would bind employers’ hands in union disputes and dangerously tilt the balance of power, subjecting employers to penalties that exempt union bosses and officials… among other things this bill would prevent employers from permanently replacing striking workers (page 175). It coerces businesses to meet union boss demands by increasing Fair Labor Standards Act penalties by an astronomical 900% (page 168).
  10. Makes unions bigger and more powerful: The bill would subsidize union dues that would only serve to strengthen the influence of union bosses and not American workers (page 2323).
  11. Pushes Democrats’ wasteful and confusing school lunch agenda: $643 million for, among other things, “procuring…culturally appropriate foods” (page 333).
  12. Furthers radical abortion agenda: Does not include the Hyde amendment and would mandate taxpayers pay for abortions (page 198) & (page 336).
  13. Drives up costs on Americans’ utility bills: Issues a punitive methane tax (page 367) and includes a tax on natural gas up to $1,500 per ton that could cost the American economy up to $9.1 billion and cost 90,000 Americans their jobs (page 368).
  14. Includes dangerous & deadly green energy mandate: Effectively forces Americans to get 40% of their energy from wind, solar and other unreliable forms of energy within 8 years (page 392). Reliance on these energy sources has proven deadly.
  15. Includes kickbacks for the Left’s green energy special interest network: $5 billion for “environmental and climate justice block grants” (page 377) and another $100 billion in green energy special interest subsidies, loans and other carve outs.
  16. Gives wealthy Americans tax credits: $222 billion in “green energy” tax credits will be given to those who can afford expensive electric vehicles and other “green” innovative products (page 1832).
  17. Furthers Democrats’ social justice agenda: Includes “equity” initiatives throughout the bill and, in one instance, Democrats inserted “equity” language into a title which should have been focusing on the maintenance of the United States’ cyber security efforts (page 897).
  18. Grants amnesty for millions of illegal immigrants: House Democrats have included in their reconciliation bill a plan to grant amnesty to around 8 million illegal immigrants at a cost of around $100 billion over ten years that would largely be spent on welfare and other entitlements (page 901). Trillions more would be spent long term on their Social Security and Medicare.
  19. Opens border even wider: The bill would waive many grounds for immigration inadmissibility, including infection or lack of vaccination status during a Pandemic, failure to attend removal proceedings in previous immigration cases, and the previous renouncement of American citizenship. DHS may also waive  previous convictions for human trafficking, narcotics violations, and illegal voting (page 903).
  20. Increases visa limit: At least 226,000 family-preference visas would be administered each year (page 905).
  21. Grants fast-tracked green cards for those seeking middle-class careers in America: Language included in the bill exempts certain aliens from the annual green card statutory limits and has been described as a  “hidden pipeline for U.S. employers to flood more cheap foreign graduates into millions of middle-class careers needed by American graduates” (page 910).
  22. Includes pork for Nancy Pelosi: $200 million is earmarked for the Presidio Trust in Speaker Pelosi’s congressional district (page 933).
  23. Increases energy dependence on OPEC, Russia and China: The bill prohibits several mineral and energy withdrawals (page 979). It overturns provisions included in the Tax Cuts and Jobs Act that authorized energy production in the Arctic that will result in 130,000 Americans losing their jobs and $440 billion in lost federal revenue (page 983) and the mineral withdrawals it prohibits would, ironically, include minerals necessary for renewable energy sources (pages 934940943).
  24. Exacerbates the chip shortage: The bill would mandate the conversion of the entire federal vehicle fleet from internal combustion engines to electric engines at a time when there is a global microchip shortage and crippled supply chains (page 1,043).
  25. Democrats’ feckless China bill is included: Concepts from the insanely weak Endless Frontier Act included, including $11 billion in research funding that will likely result in American intellectual property going to China (page 1079 – 1081).
  26. Chases green energy pipe dreams: $264 million to the EPA to conduct research with left-wing environmental justice groups on how to transition away from fossil fuels (page 1063).
  27. Fixes “racist” roads and bridges: Adds a nearly $4 billion slush fund that would help left-wing grassroots organizations that, among other things, want to tear down and rebuild or otherwise alter infrastructure deemed “racist” (page 1183).
  28. Punishes red states for failing to adopt Green New Deal provisions: Mandates “consequences” for conservative states that don’t meet the radical Left’s “green” climate standards while at the same time adding nearly $4 billion for “Community Climate Incentive Grants” for cooperating states (page 1179).
  29. Includes new massive, bankrupting entitlement: The new paid leave entitlement would mandate workers get 12 weeks of paid leave and would cost $500 billion over ten years according to the CBO (page 1245). It would apply to those making up to half a million dollars a year (page 1254).
  30. Advances a totalitarian and paternalistic view of the federal government: Includes grants for organizations to treat individuals suffering from “loneliness” and “social isolation.”
  31. Further detaches individuals from employment and more reliant on government handouts: The bill spends $835 billion on welfare through manipulating the tax code [not including the expansions of Obamacare subsidies] (page 1943).
  32. Tax benefits for the top 1%: The bill will possibly lift the SALT deduction cap meaning many of the top 1% wealthiest Americans would pay less in taxes.
  33. Tax credit for wealthy donors who give to woke universities: The bill creates a new tax credit program that gives tax credits worth 40% of cash contribution that are made to university research programs (page 2094).
  34. Expands worst parts of Obamacare: Obamacare’s job-killing employer mandate will become more severe by adjusting the definition of “affordable coverage” to mean coverage that costs no more than 8.5 percent of income rather than current law’s 9.5 percent of income (page 2041).
  35. Increases taxes on Americans at every income level: $2 trillion in tax hikes will fall on those making under $400,000 per year, contrary to what the White House says. Individuals at all income levels will be affected (Ways and Means GOP).
  36. Lowers wages for working families: The corporate tax rate will increase by 5.5%, meaning American companies will face one of the highest tax burdens in the world. According to analysis, two-thirds of this tax hike will fall on lower- and middle-income taxpayers (page 2110).
  37. Penalizes marriage: The bill would permanently double the EITC’s marriage penalty on childless worker benefits (page 2036).
  38. Imposes crushing taxes on small business: Guts the Tax Cuts and Jobs Act small business deductions that reduced pass-through entity taxes to keep them comparable to taxes imposed on corporations (page 2235) as well as hammer small businesses that file as individual tax earners with the 39.6% rate (page 2221) and Obamacare’s 3.8% tax on net investment income.
  39. Crushes family businesses and farms: The bill would impose a 25% capital gains rate  (page 2226) and makes alterations to the Death Tax including cutting the Death Tax exemption in half (page 2240).
  40. Violates Americans’ financial privacy: $80 billion slush fund to hire an 87,000-IRS-agent army to carry out the Biden administration’s plan to review every account above a $600 balance or with more than $600 of transactions in a year. (page 2283).
  41. Increases out of pocket costs for those who rely on prescription drugs: The bill repeals the Trump-era Rebate Rule which passes through rebates directly to consumers at the point of sale (page 2465).
  42. Imports policies from countries with socialized medicine: The bill includes healthcare policies imported from systems in Australia, Canada, France, Germany, Japan and the United Kingdom—all countries that have government-run healthcare systems (page 2349).

Conclusion: Each of these 42 bullets is enough to vote against the bill. Taken together—it’s mind-blowingly corrupt. We need to loudly oppose it.Critics Pan Biden's Claim That $3.5 Trillion Spending Bill ...

Democrats are scattered. The Biden agenda is in question. It’s the perfect opportunity to build public sentiment against this bill. The American people need us to be the vanguard against the Left’s radical plans.

It’s not an understatement to say this bill, if passed, will fundamentally change our country forever—Americans will wake up in a few years and wonder what happened to their freedom. We can’t let that happen.

Media Mentions

Washington Examiner- GOP list: 42 ways Pelosi-Biden $3.5 trillion bill will ‘wreck America’

Here’s one thing that GOP leaders and House Speaker Nancy Pelosi agree on when it comes to the nation’s unenthusiastic reaction to President Joe Biden’s massive $3.5 trillion spend-and-tax plan. Both sides think their messaging stinks.

NY Post- ‘Mind-blowingly corrupt’: GOP congressman outlines ‘worst’ parts of $3.5T spending bill

Republican Study Committee Chairman Jim Banks laid out his case against President Biden and the House Democrats’ sweeping social spending bill in a memo sent to members of the largest conservative caucus in Congress on Tuesday.

Breitbart- Jim Banks Reveals the ‘Mind-Blowingly Corrupt’ Carveouts in $3.5 Trillion Infrastructure Bill

Rep. Jim Banks (R-SC), the chairman of the Republican Study Committee (RSC), detailed many of the most radical aspects of the $3.5 trillion infrastructure bill.

Townhall- 40+ Radical Programs Democrats Don’t Want You to Notice in Biden’s Budget

Related Reading

Details of the Parole Status of Illegals in the Biden Administration

Primer: The Biden Administration is legislating ignoring Congress.

What is Parole? 

 

FNC:

EXCLUSIVE: At least 160,000 illegal immigrants have been released into the U.S., often with little to no supervision, by the Biden administration since March – including a broad use of limited parole authorities to make more than 30,000 eligible for work permits since August, Border Patrol documents obtained by Fox News show.

The documents give a partial snapshot into how the Biden administration has been releasing enormous numbers of migrants into the U.S., often with little to no oversight, supervision or immediate risk of deportation.

Since March 20, at least 94,570 illegal immigrants have been released into the U.S. with Notices to Report. Those who receive such a notice are only required to check in with an ICE office when they get to their final destination – which could be anywhere across the country. Those who check in are not deported or detained as their immigration proceedings move forward.

Meanwhile, since Aug 6th, the administration has released roughly 32,000 immigrants into the U.S. via parole – which gives migrants a form of legal status and the ability to apply for work permits.

Federal law says parole authority is to be used on a case-by-case basis for “urgent humanitarian purposes” and “significant public benefit.” Typically only a handful of parole cases are granted by officials, but the Biden administration has been using it more broadly, including in its parole of tens of thousands of Afghans into the United States as part of Operation Allies Welcome.

Former Border Patrol Chief Rodney Scott, who served under President Biden, reviewed the documents and told Fox News that he believes the administration is abusing its parole authority.

“By law and regulation a parole shall only be granted on a case by case basis and only for significant humanitarian reasons or significant public benefit. Neither of these appear to apply to the current situation,” he said, adding that the number of paroles brings into question the review and approval process.

“As a field chief, I don’t believe I ever approved more than 5 or 10 paroles in a year,” he said. “When I did, I ensured that the alien was monitored continuously and was detained or removed as soon as the circumstances allowed.”

The documents also show that since Aug 6, the administration has released an additional 40,000 illegal immigrants on their own recognizance. The documents also show that on one single day in Del Rio sector, 128 single adult illegal immigrants were released into the U.S. without ATD – which typically includes tracking by an ankle monitor or phone.

A Customs and Border Protection (CBP) official told Fox that mechanisms like paroling, the use of NTRs and enrolling migrants in Alternatives to Detention (ATD) “provides mechanisms to require family units released from CBP custody to report to ICE within a specified time.”

The official also cited figures that show that between 2014 and 2020, 81% of those released into the U.S. did report in for their immigration proceedings.

The agency has not released its numbers for September, but in both July and August there were more than 200,000 migrant encounters, marking some of the highest numbers in two decades. Since then, migrants have kept coming in large numbers. According to the documents, Rio Grande Valley encountered 5,900 migrants in one week, while Del Rio encountered more than 2,900 in the same period.

DHS Secretary Alejandro Mayorkas, who has repeatedly claimed that the border is not open, reportedly warned officials of a worst case scenario of up to 400,000 encounters if Title 42 public health protections were ended.

Republicans have blamed the Biden administration’s rapid rollback of Trump-era border protections for the ongoing crisis at the border. The administration however has focused on an explanation emphasizing “root causes” like poverty, corruption and violence in Central America.

“The downturn in economies, the attendant rise in violence, the downturn in economies made more acute by reason of the impact of the COVID-19 pandemic, the suppression of any humanitarian relief over the past number of years, and the pent-up thirst for relief among many different populations,” Mayorkas told Yahoo News this week. “I think an accumulation of factors contributes to the rise in migration that we’ve seen.”

The U.S. has Agreed to Financial Aid to Afghanistan

An interagency delegation of U.S. officials met this weekend with senior representatives with the Taliban and called the two-day meeting in Doha “candid and professional,” a statement from the State Department obtained by Fox News read.

The meetings covered a lot of ground and ranged from terrorism concerns to human rights in the country. The statement said the delegation also called for the safe passage for U.S. citizens and others in the country.

The U.S. delegation—once again—told the Taliban that they will be judged on their actions, not only their words, Ned Price, the spokesman, said.

Taliban political spokesman Suhail Shaheen told the Associated Press there would be no cooperation with Washington on containing the increasingly active Islamic State group in Afghanistan.

IS has taken responsibility for a number of recent attacks, including a suicide bombing Friday that killed 46 minority Shiite Muslims and wounded dozens as they prayed in a mosque in the northern city of Kunduz.

Last month, the White House said there is “no rush” to recognize the Taliban as the official government of Afghanistan, saying that recognition from the U.S. will be “dependent” on their actions, as the group announced the formation of its new government.

***

Afghanistan’s state power company has appealed to a United Nations-led mission to give $90 million to settle unpaid bills to Central Asian suppliers before electricity gets cut off for the country given that the three-month deadline for payments has passed. source

Afghanistan's Crippled Power Grid Exposes Vulnerability of Besieged Capital  - The New York Times source

(AP) — A month after the fall of Kabul, the world is still wrestling with how to help Afghanistan’s impoverished people without propping up their Taliban leaders — a question that grows more urgent by the day.

With the Afghan government severed from the international banking system, aid groups both inside Afghanistan and abroad say they are struggling to get emergency relief, basic services and funds to a population at risk of starvation, unemployment and the coronavirus after 20 years of war.

Among the groups struggling to function is a public health nonprofit that paid salaries and purchased food and fuel for hospitals with contributions from the World Bank, the European Union and the U.S. Agency for International Development. The $600 million in funds, which were funneled through the Afghan Health Ministry, dried up overnight after the Taliban took over the capital.

Now, clinics in Afghanistan’s eastern Khost Province no longer can afford to clean even as they are beset with COVID-19 patients, and the region’s hospitals have asked patients to purchase their own syringes, according to Organization for Health Promotion and Management’s local chapter head Abdul Wali.

“All we do is wait and pray for cash to come,” Wali said. “We face disaster, if this continues.”

Donor countries pledged during a United Nations appeal this week to open their purse strings to the tune of $1.2 billion in humanitarian aid. But attempts by Western governments and international financial institutions to deprive the Taliban-controlled government of other funding sources until its intentions are clearer also has Afghan’s most vulnerable citizens hurting.

The World Bank, the International Monetary Fund and the European Union suspended financing for projects in Afghanistan, and the United States froze $7 billion in Afghan foreign reserves held in New York. Foreign aid to Afghanistan previously ran some $8.5 billion a year — nearly half of the country’s gross domestic product.

 

Is the U.S. Post Office Slow Service Because it is Becoming a Real Bank?

Slow mail service is on purpose.

WASHINGTON — Americans across the country could start seeing slowdowns in mail delivery as early as Friday, when the US Postal Service implements its new service standards.

The changes, which include longer first-class mail delivery times and cuts to post office hours, are part of embattled Postmaster General Louis DeJoy’s 10-year plan for the agency that he unveiled earlier this year.

'Tis the Season to Renew and Expand the US Postal Service ...
According to USPS spokesperson Kim Frum, the service changes won’t affect about 60% of first-class mail and nearly all periodicals. Within a local area, standard delivery time for single-piece, first-class mail will remain at two days.

However, mail traveling longer distances will take longer to arrive in some cases, due to the USPS increasing transit time.

“These changes would position us to leverage more cost-effective means to transport First-Class packages via ground rather than using costly air transportation, which is also less reliable due to weather, flight traffic, availability constraints, competition for space, and the added hand-offs involved,” Frum said.

Many Democrats have called for the ouster of DeJoy, a major donor to the GOP and former President Donald Trump.

But as there is Federal government scrutiny on the private banking system(s), crypto-currency and all alternate forms of monetary exchange such as PayPal, Facebook, Venmo, Zelle or ApplePay…now it is the US. Postal System that is entering the industry.

The Postal Service Should Not Offer Banking Services | Op ...

The U.S. Postal Service has launched a pilot program to offer customers financial services, an unexpected first step toward realizing a longstanding progressive goal of postal banking.

USPS is testing the program at just four post offices on the East Coast. It will enable individuals to deposit payroll or business checks of up to $500 onto a single-use debit card for a flat fee of $5.95. The offering is far short of the much more comprehensive suite of financial services many advocates and left-leaning lawmakers have sought for years, but still takes USPS in a surprising direction under the leadership of embattled Postmaster General Louis DeJoy.

Postal management worked with the American Postal Workers Union to set up the pilot. APWU has also long advocated for postal banking, including by negotiating it into a previous collective bargaining agreement.

The four sites, located in Washington, D.C.; Falls Church, Virginia; Baltimore; and the Bronx, New York, will not accept any checks larger than $500. The debit cards, to which USPS is referring as “gift cards,” will allow users to withdraw cash from an ATM for a fee or purchase goods online or at retail stores. The American Prospect first reported the pilot.

The initial sites and services are meant to be a “proof-of-concept” test for the Postal Service, APWU officials said. The union is hopeful that USPS will expand the pilot in early 2022, both in terms of services offered and locations where they are available. The easiest areas for expansion would be to allow for gift cards for checks of more than $500. Thousands of post offices already offer Visa gift cards, and management concluded there would be few legal hurdles to simply accepting another form of payment for them. The cards USPS currently has in stock are capped at $500, hence the current maximum. Management is looking to both raise the cap on those and allow for the bundling of multiple cards.

Other services in discussion are a bill pay product, making the cards branded to the Postal Service and reloadable, and wire transfers from one post office to another. USPS has expressed an openness to setting up its own ATMs, though that may require additional statutory authority and is therefore only expected much further down the road. USPS offered banking services for more than 50 years, but stopped in 1967.

Tatiana Roy, a USPS spokeswoman, said that offering “affordable, convenient and secure” services was aligned with DeJoy’s 10-year plan to fix the mailing agency’s finances. The Postal Service this month implemented another key element of DeJoy’s plan, slowing down delivery times for about 40% of First-Class mail while also raising prices above the normal inflation-based rate.

The banking pilot “is an example of how the Postal Service is leveraging its vast retail footprint and resources to innovate,” Roy said.

APWU renewed its push for banking services earlier this year and management took a serious interest. While the union sought a wider array of services in more locations, management told the labor group that “the best way to get started was to get started.”

“It’s a baby step but we’re thrilled to be moving in the right direction,” one union official said.

USPS and APWU have not set specific figures for the number of sites to which the pilot could expand, but those discussions are ongoing. Before Monday when the program gained attention in national media outlets, USPS only announced the availability of the check cashing service through signs in the four affected post offices. The Postal Service is in the midst of soliciting proposals from the private sector for check verification services.

Research from the University of Michigan has found that one-in-four U.S. Census tracts, which are home to 21 million people, do not have any banks within their borders. Advocates for postal banking have highlighted that the private sector often charges high fees for check cashing services and that historically disadvantaged communities are disproportionately impacted by them. APWU has suggested expanding the pilot to all of the Bronx, all of Puerto Rico or to an entire rural county.

Postal management has put together a training session for impacted employees to get them up to speed on the pilot. An APWU official said its members were excited by the new task and recognized it could play a vital role in the future of the Postal Service.

The push for postal banking has gained steam in recent years, even becoming a part of the official platform of the Democratic Party. A House-backed funding bill for fiscal 2022 would require USPS to implement a banking pilot in five rural and five urban ZIP codes. Democratic lawmakers have also put forward legislation to create a public banking system backed by the Federal Reserve, which users would access at post offices. Porter McConnell, co-founder of the Save the Post Office Coalition, praised USPS for launching the pilot but said it was “not enough.”

“Given that experts and elected officials have been calling on the USPS to pilot postal banking for years, these pilots are long overdue,” said McConnell, the daughter of Senate Minority Leader Mitch McConnell, R-Ky. “They are late to this party, but they have at least rung the doorbell.”