USPS Grapples with $9 Billion Loss in 2025 Amid Operational Woes

As of November 15, 2025, the US Postal Service (USPS) has reported a net loss of $9 billion for the fiscal year, a slight improvement from the $9.5 billion loss recorded in 2024. Despite this marginal progress, the agency continues to grapple with significant systemic challenges that have resulted in over $100 billion in accumulated losses since 2007.

The USPS's financial woes are driven by an ongoing revenue and cost imbalance that threatens its long-term sustainability. While operating revenue rose by 1.2% to $80.5 billion in 2025, driven by growth in the USPS Ground Advantage shipping service and strategic price increases, volume declines persist across key categories, including a 5% drop in First-Class Mail and a 5.7% decline in Shipping and Packages.

Controllable losses, which are expenses that USPS management can impact, have widened from $1.8 billion in 2024 to $2.7 billion in 2025, highlighting the agency's ongoing operational cost pressures. Total operating expenses climbed by $317 million to nearly $89.8 billion, primarily due to rising compensation and benefit costs.

Newly appointed Postmaster General David Steiner has emphasized the urgent need for reforms, stating, "To correct our financial imbalances, we must explore new revenue opportunities and public policy changes to improve our business model." Steiner underscored the USPS's need to operate more efficiently and compete effectively while continuing its public service mission.

The agency is seeking legislative changes, including reforming retiree pension funding rules, raising the statutory debt ceiling, and revising the workers' compensation system. Steiner also advocated for investments in technology innovations, such as integrating artificial intelligence into the USPS's logistics network to boost efficiency.