MAYOR ADAMS, GOVERNOR HOCHUL ANNOUNCE $70 MILLION INITIAL INVESTMENT TO DECARBONIZE NYCHA BUILDINGS AS PART OF CLEAN HEAT FOR ALL CHALLENGE

 

Midea America and Gradient Selected by NYPA to Develop New Heat Pump Technology and Produce 30,000 Initial Units

 

Advanced Heating and Cooling Solutions Will Reduce Greenhouse Gas Emissions and Improve Resident Comfort

 New York City Mayor Eric Adams and New York Governor Kathy Hochul announced today that the New York City Housing Authority (NYCHA), New York Power Authority (NYPA), and New York State Energy Research and Development Authority (NYSERDA) are moving forward with the Clean Heat for All Challenge through a planned $70 million initial investment in the development and production of 30,000 new heat pump units for use in New York City Public Housing facilities.

 

Last week, the NYPA Board of Trustees awarded the funding through two seven-year contracts to Midea America and Gradient for the development and delivery of cold climate packaged window heat pump units. The announcement is the latest milestone in the Clean Heat for All Challenge, an initiative spearheaded by NYCHA, NYPA, and NYSERDA to develop a new electrification product that can better serve the heating and cooling needs of existing multifamily buildings and hasten the transition to fossil-free heating sources.

 

“Our administration is laser-focused on providing safe, high-quality, affordable housing for all New Yorkers, and today, we are delivering on a commitment in our housing blueprint that brings us one step closer,” said Mayor Adams. “We understand better than ever that our city’s most pressing crises are interconnected, but the solutions can be too. I am so proud to be partnering with Governor Hochul to deliver top-of-the-line technology for NYCHA residents to heat and cool their homes while also reducing our carbon footprint and helping to protect New Yorkers from health issues like asthma.”

 

“New York is tackling the climate crisis and the need for affordable housing head on, and the funding announced today will go a long way in addressing both,” said Governor Hochul. “Prioritizing green investments in public housing ensures the state’s bold climate agenda is equitable, benefiting all New Yorkers now and in the future. NYCHA residents deserve high-quality homes, and we’re working to make that happen.”

 

The Clean Heat for All Challenge reflects the goals of Mayor Adams’ “Housing Our Neighbors” blueprint for getting New Yorkers into safe, high-quality, affordable homes. The first city housing plan to cover the entire spectrum of New Yorkers’ housing needs and options, the blueprint outlines a plan to transform NYCHA by both delivering much-needed resources for repairs and streamlining the services NYCHA provides residents and the processes by which they do so.

 

Heat pump technology provides efficient cooling and heating from a single unit by moving heat between the indoor and outdoor spaces depending on the season. The process is achieved through the refrigeration cycle, which can be up to four times more efficient than traditional heating systems, such as boilers, which rely on on-site combustion of fossil fuels to produce heat. Heat pumps are difficult to install, particularly in occupied units. As a result, many operators prefer to delay electric conversion in favor of in-kind replacement of fossil fuel systems.

 

Over the next year, NYPA will coordinate with Midea America and Gradient to develop the proposed heat pump technology for testing and demonstration. NYPA will then collaborate with NYCHA to install 60 of the developed units in designated public housing to be comprehensively monitored and assessed over the course of a winter season before moving forward with the widespread installation of 30,000 units throughout the following years.

 

The heat pump units developed to meet the Clean Heat for All Challenge will enable rapid, low-cost electrification of space heating in multifamily buildings by reducing or eliminating many of the cost drivers inherent to installing existing heat pump technologies in resident-occupied apartments, including electrical system upgrades, lengthy refrigerant piping, and through-wall drilling and penetrations.

 

Midea America, which was awarded a contract for 20,000 units, is a global appliance manufacturer founded in 1968 with headquarters in China and the U.S., 11 factories around the globe, and annual output of 67 million units. They are a market leader in room air conditioning with a line of Energy Star rated window ACs, dehumidifiers, and other packaged ACs.

 

Founded in 2015, Gradient is a startup based in San Francisco, California, that was awarded a contract to manufacture 10,000 units. The proposed unit will be a cold climate heat pump capable of operating at low temperatures based on NYCHA’s specifications. The company intends to manufacture the product domestically in the United States.

 

In June, Governor Hochul signed legislation creating the New York City Public Housing Preservation Trust, a public benefit corporation, to help NYCHA invest billions of dollars in capital to fund repair, rehabilitation, and modernization of 25,000 supportive-housing apartments under NYCHA control. The Trust also guarantees homes are kept affordable by preserving rights that ensure residents only pay 30 percent of their income toward rent, residents maintain all current succession rights, apartments will continue to be reserved for low-income residents, and apartment vacancies will continue to be filled using the NYCHA waiting list.

 

“NYCHA residents have suffered freezing winters and boiling summers for too long. As a model for cleaner, more reliable heating and cooling for homes across the city and hopefully the country, the Clean Heat for All challenge will put public housing residents at the forefront of our decarbonization efforts,” said New York City Chief Housing Officer Jessica Katz. “This $70 million investment is an incredible step forward in the face of a changing climate that will have an impact on both those living in these homes with the new window units as well as our city as a whole. Thank you to New York Power Authority and New York State Energy Research and Development Authority for their partnership in support of NYCHA residents and a greener future.”

 

“The partnership between NYCHA and NYPA to develop new green technologies and pathways to implement them across a large portfolio of residential buildings will serve as an example to all property owners as we implement Local Law 97,” said New York City Chief Climate Officer Rohit T. Aggarwala. “Buildings are the largest source of greenhouse gas emissions in the five boroughs, and it is these types of innovative projects that will help us meet our critical climate goals.”

 

“The technology developed through the Clean Heat for All challenge will be transformational for the market and will help clear many of the hurdles buildings face to adopt clean heating and cooling,” said Kizzy Charles-Guzman, executive director, New York City Mayor’s Office of Climate and Environmental Justice. “The cleaner air, improved comfort, and safety that heat pumps provide are vital to the health of our communities, and this partnership will have impacts far beyond the affordable housing market: It will create local green jobs, support New York City’s efforts to help homeowners through programs like ElectrifyNYC and continue to demonstrate the City and State’s leadership on tackling the climate crisis.”

 

“The lack of an efficient and affordable solution for electric heating and cooling remains one of the primary hurdles for meaningfully reducing our carbon emissions footprint, especially for many of the tall residential buildings that comprise our portfolio,” said NYCHA Chair and CEO Greg Russ. “This innovative public-private partnership helps move NYCHA towards a low-carbon future, by bringing the promising technology of beneficial electrification to the largest public housing authority in the United States.” 

 

“I applaud Mayor Adams and Governor Hochul for leading by example with this forward-thinking action plan, showing private building owners that through innovation and investment, we can make real progress in reducing the harmful greenhouse gases coming from our buildings,” said New York City Department of Buildings Commissioner Eric A. Ulrich.

 

“NYPA is excited to progress the Clean Heat for All Challenge through the selection of the initiative’s first vendors, which will develop and produce 30,000 heat pump units for the benefit of NYCHA residents,” said Justin E. Driscoll, interim president and CEO, NYPA. “The decarbonization of buildings — the state’s largest carbon emissions source — is critical to achieving the governor’s ambitious climate change goals.”

 

“NYSERDA is proud to support the Clean Heat for All Challenge and congratulates these two innovative companies as they begin work on what is expected to be an efficient, cost-effective, easy to install, heating and cooling solution for NYCHA residents,” said Doreen Harris, president and CEO, NYSERDA. “The combined focus on advancing new heat pump technology in multifamily buildings and ensuring the health and comfort of underserved populations supports Governor Hochul’s commitment to achieve 2 million climate-friendly homes by 2030 while ensuring that all New Yorkers benefit from clean energy investments.”

 

“Lowering or eliminating the reliance on fossil fuels in existing and new buildings is fundamental to New York State achieving the goals of the Climate Leadership and Community Protection Act (CLCPA),” said New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas. “Today’s announcement clearly demonstrates how the collective efforts of state and local government to decarbonize our housing stock will create climate-friendly affordable homes as well as healthier, safer, and more resilient communities for all New Yorkers.”

 

Attorney General James Joins Multistate Supreme Court Brief Supporting Race-Conscious College Admissions Programs

Case before the U.S. Supreme Court Could Have Major Ramifications for College and University Admissions Processes 

 New York Attorney General Letitia James joined a coalition of 20 attorneys general in filing a multistate amicus brief urging the U.S. Supreme Court to reject a request to overturn more than four decades of precedent allowing higher education institutions to consider race or ethnicity as part of holistic admissions processes to promote diversity in learning environments. The brief, filed in the cases Students For Fair Admissions, Inc. v. President & Fellows of Harvard College and Students For Fair Admissions, Inc v. University of North Carolina, urges the court to reaffirm its prior rulings that found a holistic race-conscious admissions policy is constitutional and helps promote the educational benefits of diversity.

.

“Diversity is one of our great strengths, as New Yorkers and as Americans,” said Attorney General James. “Efforts to undo the strides we’ve made in encouraging greater diversity in our educational institutions must be confronted with all of our might. Diversity at higher educational institutions leads to a more diverse workforce and a stronger, more prosperous, more equitable society. I am proud to join with attorneys general from throughout the nation to stand up for educational opportunities for all students, especially those from traditionally under-represented communities.”

According to the brief, the benefits of diversity in higher education have become more critical to states when graduates join the workforce, participate in civic life and take on leadership roles. The brief describes how diversity in the health care workforce improves health outcomes and access for all residents — particularly for those in medically-underserved communities. Additionally, increasing the diversity of primary school educators improves the academic performance of public school students and college attendance rates. The states also argue that the businesses that fuel their economies rely on a diverse pipeline of graduates who have the potential to bring differing perspectives to leadership positions in their fields.  

The brief highlights disparities that reversing this precedent will exacerbate. For example, while Black Americans make up nearly 13 percent of the country’s population, as recently as 2018, only 5.4 percent of physicians are Black, and, according to the brief, prohibiting medical schools from implementing a race-conscious admissions program could further exacerbate these disparities. In fact, the brief points out that medical schools in states that have bans on race-conscious admissions programs have seen a 37 percent decrease in enrollment from historically underrepresented communities.  

The brief also describes how, nationally, nearly 80 percent of educators are white and non-Hispanic, but 54 percent of students in public primary and secondary schools were students of color in 2020. Given these disparities, the growing diversity in our country, and the educational benefits of a diverse teaching workforce, states need every option available to increase the diversity of educators. Removing the possibility of using holistic race-conscious admissions where necessary will be detrimental to future generations of students.  

Finally, the states describe how achieving meaningful student-body diversity while altogether excluding any consideration of race has proven challenging in states with bans on race-conscious admissions, particularly at selective institutions that produce so many of the states’ civic, professional, and business leaders. Accordingly, the states argue, institutions of higher education continue to require the flexibility, where necessary, to use the kind of holistic race-conscious admissions policies that the Supreme Court has approved for decades.   

Joining Attorney General James in filing today’s brief are the attorneys general of California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Pennsylvania, Rhode Island, Wisconsin, and Washington. 

Governor Hochul Announces $31.5 Million for Supportive Housing Projects

 

State Funding will Create 332 Units of Permanent Supportive Housing for New Yorkers Experiencing Homelessness

Project Complements the Governor's $25 Billion Five-Year Housing Plan to Bolster Housing Stability for New Yorkers

 Governor Kathy Hochul today announced that $31.5 million in state funding was awarded to seven projects that will provide permanent supportive housing to New Yorkers experiencing homelessness. Supported through the state's Homeless Housing and Assistance Program, these projects include developments that will create an additional 332 units serving the elderly, individuals with a history of substance use disorder, individuals with developmental disabilities, young adults and those suffering from serious mental illness.  

"All New Yorkers deserve access to safe, affordable housing, and it is crucial to provide them with critical resources and amenities needed in the long term," Governor Hochul said. "By implementing these strategic investments in supportive housing, we will help our state address the root causes of housing insecurity and ensure those that need help will have access to support networks they can rely on for stability. As we remain laser-focused on building back New York better and stronger than before, we will continue taking aggressive action to help ensure every community has access to the services they need to thrive."

Administered by the state Office of Temporary and Disability Assistance, the Homeless Housing and Assistance Program is an important component of Governor Hochul's comprehensive plan to make housing more affordable, equitable, and stable throughout New York. In the FY 2023 Enacted State Budget, the Governor successfully secured a new $25 billion, five-year, comprehensive housing plan that will increase housing supply by creating or preserving 100,000 affordable homes across New York, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. This project is supported by FY 2022 funds.

The Budget continues $128 million in capital funding for the Homeless Housing and Assistance Program to build new supportive housing units or repair existing emergency shelters. With the latest awards, the program has allocated roughly $115.3 million to 476 units of permanent supportive housing, 94 units of transitional housing, and 303 emergency beds housing. Of the 303 emergency housing beds, 164 are repairs and 139 are new beds.

The projects awarded funding include:

• Breaking Ground was awarded $5.7 million to construct a 15-story building in the Queens neighborhood of Jamaica, with 52 units of permanent supportive housing serving elderly individuals who have a serious mental illness or substance use disorder.  
• Ithaca Neighborhood Housing Services, Inc. was awarded $2.25 million to renovate a former elementary school building and construct three townhouses in the village of Cayuga to create eight units of permanent supportive housing to serve individuals with intellectual or developmental disabilities.  
• DePaul Properties, Inc. was awarded $3.49 million to construct two buildings in the city of Schenectady, creating 30 units of permanent supportive housing serving the elderly and individuals with serious mental illness. 
• Project Renewal, Inc. was awarded $6 million to construct a 17-story building in the Bronx with 70 units of permanent supportive housing for individuals with serious mental illness or substance use disorder. 
• CAMBA Housing Ventures, Inc. & CAMBA, Inc. was awarded $9.9 million to develop 146 units of permanent supportive housing in Brooklyn, including units reserved for individuals re-entering the community from incarceration, homeless youth, youth aging out of foster care, and chronically homeless families. 
• Christopher Community, Inc. was awarded $2.8 million to create 20 units of permanent supportive housing in the Madison County town of Morrisville, serving frail, elderly seniors with a disability or chronic condition. 
• Catholic Charities of Onondaga County was awarded $1.23 million to construct six units of permanent supportive housing serving chronically homeless men adjacent to the organization's Emergency Homeless Shelter and Housing Services Center. 

Office of Temporary and Disability Assistance Commissioner Daniel W. Tietz said, "Supportive housing is such a crucial component of our efforts to provide lasting stability for New Yorkers in need, including some of the most vulnerable among us. These projects, like many others supported by the Homeless Housing and Assistance Program, will provide new hope for individuals and families that have or are experiencing homelessness. We are grateful for Governor Hochul's continuing support for this program and for making housing stability in New York a priority of her administration."

New York City Mayor Eric Adams said, "Supportive housing is a critical component of our Blueprint for Housing and Homelessness in New York City, and these three projects will help New Yorkers in three boroughs obtain the safe, high-quality, affordable housing they deserve. This is a fight the city cannot wage alone, and I commend Governor Hochul for committing the resources to help us tackle our deeply intertwined affordable housing and homelessness crises."

Bronx Borough President Vanessa Gibson said, "I applaud Governor Hochul's announcement of $31.5 million in state funding to provide permanent supportive housing to New Yorkers experiencing homelessness and  additional 332 units serving the elderly, individuals with a history of substance use disorder, individuals with developmental disabilities, young adults and those suffering from serious mental illness. The need for safe and permanent housing is at all time high across our city and state, and it is imperative that we take action to care for our most vulnerable residents."

Permits Filed For 171 West 239th Street In Kingsbridge, The Bronx

 

Permits have been filed for an eight-story affordable housing building at 171 West 239th Street in Kingsbridge, The Bronx. Located between John M. Collins Place and Putnam Avenue West, the lot is blocks from the 238th Street subway station, serviced by the 1 train. Tishman Speyer is listed as the owner behind the applications.

The proposed 76-foot-tall development will yield 260,681 square feet designated for residential space. The building will have 336 residences, most likely rentals based on the average unit scope of 775 square feet. The concrete-based structure will also have a cellar and 69 enclosed parking spaces.

Aufgang Architects is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.

Council Member Marjorie Velázquez - My Statement on Jacobi Hospital Project + Upcoming Events

 

My Statement on Jacobi Hospital

"Last year my predecessor and other local elected officials were informed that Health + Hospitals intended to utilize an already existing building on the Jacobi campus for the Just Home Initiative as well as affordable housing. Three weeks ago, following the HPD designation bringing Fortune Society onto the project, I had a meeting with them, CHS, and Jacobi Hospital to learn about what the project would entail.

I understand that there has been misinformation shared for politically expedient purposes regarding the project. So let's set the record straight, I cannot support any project that does not offer my community a seat at the table nor has attained community support. Additionally, the scaffolding surrounding the building is not because any construction relating to this project, and there is no intention to tear down the wall on Seminole Ave. Fortune Society says it will be years before anyone could move into the building and there is still a long process this project must still go through. Fortune Society is very interested in community engagement, which is why I made sure they were invited to the community meeting at Maestro’s to make this project transparent to the community.

When it comes to my district, I always strive for community led processes and to bring all relevant stake holders to the table. This project is no exception, and I hope we are able to find a use for the building that works for the community, patients, and the hospital.”

The mobile MTA sales van will be outside 3602 E Tremont Ave (between Scott Pl & Sullivan Pl) on the 2nd & 4th Friday of every month from 1pm to 3pm. The mobile MTA sales van accepts debit, credit, and cash payments. They also provide services for senior and disability transit cards.

     Our mailing address is:
     3040 E Tremont, Bronx, NY 10461

Rodman’s Neck Legislation or Political Stunt for State Senate Candidate

 

Assemblyman Michael Benedetto and State Senate candidate Assemblywoman Nathalia Fernandez stood across the water from Rodman's Neck to introduce legislation to have the New York City Police firing range soil, water, and air monitored for pollutants. 

The purpose of Assembly Bill Number A10613 is to amend the general municipal law in relation to municipal shooting ranges that are used to train local law enforcement and directs the Department of Health to conduct a study describing the contaminants and other pollutants in the ground and water bodies adjacent to certain shooting ranges. The bill would also set hours of operation and acceptable sound level measurements delivering its findings in writing to the governor and legislature one year after the bill's enactment and establish a remediation plan if warranted.

Assembly Bill Number A10613 was introduced after the session ended on July 6, 2022 by sponsor Assemblyman Benedetto, co-sponsored by Assemblywoman Fernandez. There are no other sponsors, and A10613 was referred to the Committee on Local Governments on the same day it was introduced by Assemblyman Benedetto. One has to wonder why a bill like A10613 was not introduced before since both Assembly members Benedetto and Fernandez have been in the assembly for several years. One also has to wonder why it was introduced after Assemblywoman Fernandez declared her State Senate candidacy being substituted for Lisa Hofflich who had qualified for State Senate District 36 after Hofflich withdrew.  

When asked why Councilwoman Marjorie Velazquez was not in attendance the answer was that the state had power over the city on this matter. State Senator Alessandra Biaggi also not in attendance was upstate where she has been for the past month campaigning for a congressional seat. 

Assemblyman Michael Benedetto speaking about the legislation he sponsored and Assemblywoman Nathalia Fernandez co-sponsored about Rodman's Neck in the background. They are joined by members of the Spencer Estates and Edgewater Park communities. 

Governor Hochul Announces Update to State Budget Financial Plan Reflecting Changes to the National Economic Outlook

 

Personal Income Tax Collections Projected Downward

Elevated Reserve Deposits and Balances Being Maintained as Planned

 Governor Kathy Hochul announced today that the first quarterly update to the FY 2023 Enacted Budget Financial Plan has been released. The elevated reserve fund deposits and balances planned since October 2021 will continue even in the face of a changing economic outlook, an example of the continued fiscal discipline of the Hochul Administration.

"Like the rest of the country, New York State is facing substantial headwinds with a changing national economy, and our latest update to the Enacted Budget Financial Plan reflects that," Governor Hochul said. "While the Plan incorporates future budget gaps, our commitment to fiscal discipline and planning for a rainy day remains and reserve fund deposits and balances will stay at the elevated levels we have planned."

The Plan update reflects clear signs of economic distress in the national economy, which trickles down to the State economy. Real Gross Domestic Product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of calendar year 2022, which follows a first quarter decrease of 1.6 precent. Consumer prices through June 2022 increased by 9.1 percent over 12 months, the largest increase since the 12 months ending November 1981. Financial sector performance, which is an important source of tax collections in New York State, has continued to weaken in response to unfavorable economic data. Through late July, every major stock index is down more than 10 percent, with the NASDAQ index down over 23 percent and the S&P 500 down 15.1 percent, since the start of calendar year 2022.

Starting in FY 2024, the annual estimates for personal income taxes (PITs) have been reduced substantially from the Enacted Budget in recognition of a weaker economic outlook for both the U.S. and the State. The estimated payment component of PIT, which includes capital gains activity, is reduced by $3.1 billion in FY 2024, $5.1 billion in FY 2025, $5.7 billion in FY 2026, and $8.4 billion in FY 2027. The reduction is partly offset by a $1 billion annual increase in the withholding component of PIT, reflecting growth from a higher expected base in FY 2023.

The updated Financial Plan reflects an additional General Fund surplus of $2.3 billion in FY 2023 and a gap of $310 million in FY 2024, after the planned use of the FY 2023 surplus in FY 2024. The budget gaps in the out-years are estimated at $3.6 billion in FY 2025, $3.5 billion in FY 2026, and $6.2 billion in FY 2027. The budget gaps are almost exclusively attributed to the reductions to the tax receipts forecast.

The State has continued to strengthen reserve funds that serve as a bulwark against precipitous service cuts or tax increases during an economic downturn. At the end of FY 2022, the State's principal reserves totaled nearly $9 billion. Over the next three years, additional deposits of $10.4 billion will bring reserves to $19.4 billion, equal to 15 percent of State Operating Funds spending, the fiscal target set by Governor Hochul in October 2021. Reserves in FY 2025 exceed the projected budget gaps by roughly $6 billion.

The Plan update is available on the Division of the Budget website.

MAYOR ADAMS, CITY OF NEW YORK, COALITION OF STATES SECURE SETTLEMENT WITH USPS TO IMPROVE PRACTICES AGAINST ILLEGAL CIGARETTE SHIPMENTS

New York City Mayor Eric Adams and New York City Corporation Counsel Sylvia O. Hinds-Radix today announced a settlement with the United States Postal Service (USPS) that implements robust measures to end the unlawful practice of mailing cigarettes into the United States by foreign shippers. The settlement resolves a lawsuit filed by the City of New York and four state attorneys general alleging the USPS transported cigarettes in violation of a 2010 federal law.

 

“We were not going to stand idly by as foreign shippers circumvented federal law in an effort to avoid billions in taxes and hook underage kids on nicotine,” said Mayor Adams. “With today’s action, we are not only getting the USPS to agree to address longstanding shortfalls in their practices, but are making clear to foreign shippers that their products may be seized and destroyed if they continue to ship cigarettes illegally through the mail.”

 

“We are pleased the Postal Service has agreed to implement extensive controls to stop the flow of illegal cigarette shipments through its facilities,” said Corporation Counsel Hinds-Radix. “Illegal mail-order cigarette deliveries deprive federal, state, and local government of billions of dollars in tax revenue and allow underage access to cigarettes. The City of New York will continue to hold accountable entities that transport cigarettes illegally and turn a blind eye to the law.”

 

Enacted by Congress in 2010, the Prevent All Cigarette Trafficking (PACT) Act prohibits the USPS from knowingly accepting or transporting cigarettes in the mail unless authorized by certain narrow exceptions. For the most part, the PACT Act appears to have deterred domestic sellers from shipping cigarettes using the USPS, but has been less effective in eliminating cigarettes mailed from overseas.

 

Investigations undertaken by the New York City Sheriff’s Office and multiple state attorneys general from across the country have revealed that hundreds of thousands of packages of cigarettes are estimated to be mailed through foreign postal services, transferred into the U.S. mail system, and delivered to U.S. households each year. These investigations include package audits at USPS international mail facilities and undercover investigations of international cigarette sellers delivering to U.S. households. The investigations demonstrated that the USPS’s practices for detecting and stopping the transport and delivery of cigarettes from overseas sources to consumers have been ineffective over the last decade.

 

Following unsuccessful attempts by the city and others to negotiate improvements to the USPS’s compliance with the PACT Act, in October 2019, the city co-led a lawsuit in federal court in Brooklyn, seeking a permanent injunction prohibiting the USPS from delivering packages known or reasonably believed to contain cigarettes and prohibiting the USPS’s practice of returning identified packages of cigarettes to shippers. The USPS’s attempt to dismiss the lawsuit was denied, and the court ruled that the USPS was subject to suit by state and local governments for violations of the PACT Act and that the USPS’s practice of returning cigarette packages to overseas senders, as alleged in the complaint itself, violated the PACT Act.  

 

In the settlement, the USPS has agreed to implement the following comprehensive reforms:

 

• Upgrade its Advance Electronic Data technology to significantly improve its ability to detect cigarette packages in international mail.
• Permanently discontinue its practice of returning cigarette packages to senders that would often just resend the packages in another attempt to get them delivered. Instead, the USPS has agreed to destroy these cigarette packages as allowed by law, a costly disincentive to these international shippers.
• Provide the identifying information of illegal shippers to plaintiffs’ law enforcement arms so enforcement actions can be taken.
• Designate a compliance manager to oversee and manage PACT Act compliance, including ensuring that the changes in this agreement are implemented.
• Form a joint committee with representatives of each of the plaintiffs that will assess the USPS’ progress on implementing reforms.
• Implement additional policies and employee training to ensure compliance with the PACT Act, and help employees recognize and dispose of packages containing cigarettes.

 

Cigarette smoking is a leading cause of preventable premature death in the United States. Smoking annually kills more than 480,000 people nationwide, a figure that exceeds the combined number of deaths from alcohol, motor vehicle collisions, and firearms. According to the World Health Organization and numerous public health studies, maintaining high taxes on cigarettes is the most effective anti-smoking policy intervention, particularly among youth.  

The city’s action against the USPS follows prior successful actions against Federal Express, United Parcel Service, and LaserShip, among others, for shipping cigarettes in violation of the PACT Act.  

 

Joining the City of New York in announcing this settlement are the attorneys general of California, Connecticut, Illinois, and Pennsylvania.