The US House has passed legislation allowing electronic delivery of investor documents as the default option, a move that could further reduce mail volumes for the struggling Postal Service, reported New York's FreightWaves.

Section 205 of the INVEST Act directs the Securities and Exchange Commission to issue rules within a year permitting investment companies to switch to electronic-only delivery of financial information. Customers would still be able to opt for paper copies.

Proponents said digital disclosure improves efficiency, reduces waste and enhances security compared with physical mail. The Investment Company Institute argued electronic delivery allows for real-time information rather than static data.

Opponents, including mass marketers and print suppliers, warned the measure threatens jobs and revenue in the direct mail sector and for the Postal Service. They said older Americans and rural households may struggle with digital platforms or lack reliable internet access.

Kathleen Siviter of the Alliance of Nonprofit Mailers said the bill would further weaken the Postal Service, which posted a US$2.8 billion operating loss in the year to 30 September as first-class mail volumes fell five per cent. She added paper remains more secure against cyberattacks and outages.

The Social Security Administration recently stopped sending paper cheques to retirees under a presidential order to modernise payments. Less than 1 per cent of beneficiaries still receive paper cheques, which the Treasury said cost about 50 cents each compared with 15 cents for electronic transfers. Paper cheques are 16 times more likely to be lost or stolen, according to SSA data.