Postmaster general warns USPS could run out of money by next year if ‘status quo’ continues

WASHINGTON — The U.S. postmaster general warned members of Congress on Tuesday that funding is on track to dry up for the U.S. Postal Service by next year and deliveries could be forced to stop unless something changes. 

“I am not sure the American public is aware that the Postal Service is at a critical juncture,” David Steiner shared in a prepared statement with a House oversight committee. 

“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. So, less than a year from now, the Postal Service will be unable to deliver the mail if we maintain the status quo,” he continued. 

Steiner’s testimony cited the drastic reduction in the use of mail from its peak volume in 2006 of roughly 213 billion pieces per year to its current volume of roughly 104 billion pieces per year, which he calculated as about $81 billion in revenue loss. 

Steiner compared the situation to being thrown an anchor instead of a lifeline when they asked for help and listed numerous “anchor” challenges weighing down the agency.

“We are not standing by as we sink under the weight of the anchor,” he continued. “We are taking steps to fight our way back above water.” 

Steiner explained ways the agency has been working to reduce costs, raise prices and sell more products in an effort to stay afloat, but he stressed that it’s still not enough to make ends meet unless there are systemic changes. 

“We cannot leave any stone unturned if we want to survive and continue to provide our vital public service,” he said. 

Congress oversees the agency, but operations are not wholly funded by taxpayer dollars. Instead, the USPS is a self-financed independent entity, meaning it operates more similarly to a private company, Steiner argued, and borrowing limits have been reached. Federal law caps the agency’s borrowing at $15 billion. 

“If you want the same level of services that we have today—six-day-a-week delivery and 33,000 plus post offices, we can do that, and we are glad to do that. But someone has to pay for it, and the only options are postal ratepayers or taxpayers,” he stressed. 

The postmaster general called for Congress to increase the debt limit, which hasn’t changed since 1992, and to allow the USPS to increase its postage prices. He also offered several “more extreme” solutions, as he called them. 

Lawmakers from both sides of the aisle acknowledged the current challenges and appeared open to considering ways to remedy the issue. 

The National Association of Letter Carriers shared its support for several of the “commonsense” solutions that were laid out by Steiner but urged Congress to oppose changes to federal workers’ compensation for postal employees.