"I am not sure that the American public is aware that the Postal Service is at a critical juncture. I know that I wasn't aware of the extent of it before I took on this role, but at our current run rate and if we continue to pay our required obligations in the same manner as we have done in recent years, then we will be out of cash in less than 12 months."
"Since 2007, the mailing agency has been operating with a financial shortfall almost every fiscal year with fewer people and businesses using first-class mail, its most profitable product, amid the rise of paperless billing and digital communication."
"I like to say that in the time since peak 2006 mail volume, the Postal Service was thrown overboard and instead of tossing us a life jacket, we were thrown an anchor, referring to what USPS has seen as burdensome regulations and requirements."
The U.S. Postal Service faces a critical financial crisis, with Postmaster General David Steiner warning Congress that USPS will exhaust its cash reserves within 12 months if current spending patterns continue. The agency, which operates independently without tax funding and relies on stamp and service fee revenue, has struggled since 2007 with annual financial shortfalls. Declining first-class mail volume due to digital communication and paperless billing has reduced its most profitable revenue source. Despite a multi-year reorganization effort beginning in 2021, efficiency gains have been insufficient. USPS reported a $9 billion net loss in fiscal year 2025 and posted its fourth consecutive quarterly loss of $1.3 billion, driven by increased worker compensation, retiree health benefits, and operating expenses.
Read at www.npr.org
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