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USPS Cash Crisis: Out of Money Within a Year?
6 Mar
Summary
- USPS could be out of cash within a year without congressional action.
- A $15 billion borrowing cap from 1990 must be lifted, says Postmaster General.
- Raising first-class stamp price to 95 cents could fix fiscal woes.
The U.S. Postal Service is on the brink of a financial collapse and may exhaust its cash reserves within a year, according to Postmaster General David Steiner.
Steiner warned that without congressional intervention to lift a $15 billion borrowing cap established in 1990, the agency might struggle to meet payroll and vendor obligations by February 2027. He emphasized that the USPS operates with the burdens of a government agency but lacks federal appropriations.
He indicated that raising the price of a first-class stamp to 95 cents, from the current 78 cents, could resolve the financial difficulties. However, an independent commission currently restricts such price increases.
Steiner, who assumed leadership last July, is scheduled to testify before Congress about the USPS's financial struggles. He advocates for reforms to pension obligations and the ability to diversify investments beyond Treasury bills.
The Postal Service has seen its annual mail volume decline significantly, contributing to substantial net losses. In fiscal year 2025, losses totaled $9 billion, following $9.5 billion in fiscal year 2024.
