US Postal Service expects to run out of cash in a year
6 hours ago
- #financial crisis
- #Congress
- #USPS
- The U.S. Postal Service (USPS) may run out of cash within a year unless Congress lifts a $15 billion borrowing cap in place since 1990.
- Postmaster General David Steiner warns USPS could fail to pay employees or vendors by February 2027, risking mail delivery disruptions.
- USPS operates as an independent agency, funded mostly by postage revenue, but lacks government benefits like federal budget appropriations.
- Steiner calls for expanding revenue sources, including last-mile delivery services, and raising stamp prices to cover losses (e.g., increasing first-class stamps to 95 cents).
- USPS reported $9 billion in net losses for fiscal year 2025, despite a 1.2% revenue increase from shipping services.
- Steiner urges reforms to pension and retiree health obligations, including investment flexibility beyond Treasury bills.
- Mail volume has halved from 220 billion to 110 billion pieces in recent years, drastically reducing revenue.
- Regulators and Congress have imposed costly mandates instead of aiding USPS, according to Steiner.
- Advocacy group Keep Us Posted warns USPS is 'headed for a taxpayer bailout' and urges legislative action to limit rate hikes.