Postmaster General David Steiner warns the USPS could run out of cash within a year. He seeks higher stamp prices and more borrowing power to ensure survival.
The United States Postal Service is set to deliver a stark warning to Congress regarding a looming financial crisis that could see the agency run out of cash within a year. Postmaster General David Steiner will present testimony to a House Oversight subcommittee on Tuesday, outlining the urgent need for significant legislative reforms and operational changes to ensure the organization's survival.
Steiner’s proposal includes a variety of measures aimed at stabilizing the agency's balance sheet. Key among these are requests for higher stamp prices, with suggestions to increase the cost of first-class mail from $0.78 to $1.00 or more. Additionally, the Postal Service is seeking an expansion of its borrowing capacity to maintain liquidity.
Operational adjustments are also on the table as the agency looks to reduce costs. Potential strategies include the termination of six-day-a-week delivery and the closure of certain post office branches. According to written testimony, these steps are viewed as necessary to prevent a total depletion of funds.
In order to ensure our survival beyond next year, we need to increase our borrowing capacity so that we don’t run out of cash.
The Postmaster General warned that without immediate action from lawmakers, the fundamental nature of the country's mail delivery system could be permanently altered.
The failure to do this could lead to the end of the Postal Service as we know it now.
