Why a lapse in federal appropriations does not interrupt rent to a postal lessor.
A lapse in appropriations suspends non-essential federal functions and furloughs the staff who perform them. The Postal Service is not among them.
The Postal Service is an independent establishment of the executive branch, funded principally through the sale of postage and services rather than through annual appropriation. It continues to operate during a lapse, with or without a continuing resolution in place. Leased facilities remain open and operating, and lessors continue to receive rent under their leases.
For an owner, the practical exposure is close to nil. Shutdown risk is one of the few risks this asset class does not carry, and it is among the reasons postal income behaves differently from income secured on an appropriated agency.
General information on the structure of the Postal Service and its funding. Individual lease terms govern in all cases.
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