The House on Tuesday advanced a major financial overhaul of the ailing U.S. Postal Service, relieving it of tens of billions of dollars in liabilities that agency leaders said prevented it from modernizing and providing efficient service.

The bill, which passed 342 to 92, marks a major breakthrough for the mail agency and Postmaster General Louis DeJoy, who made the legislation the centerpiece of his 10-year postal restructuring plan.

The Postal Service has implored Congress to help fix its balance sheet for nearly 15 years, and agency leaders are cautiously optimistic about prospects for the Postal Service Reform Act in the Senate. It has 27 co-sponsors in the upper chamber, including 14 Republicans, sufficient support to defeat a potential filibuster.

Senate Majority Leader Charles E. Schumer (D-N.Y.) said the chamber would vote on the legislation by the end of next week, citing its bipartisan popularity.

Senators reach bipartisan deal to overhaul USPS finances, tighten accountability requirements

Democrats have hailed the legislation […]