USPS Facing Shutdown Within 12 Months: What Happens If Congress Doesn’t Act

by

US Political News Today: The USPS Is Almost Out of Money and Could Shut Down Within 12 Months — Here Is What That Means

In mid-March, the serious financial problems at the United States Postal Service came to the attention of Congress. Postmaster General David Steiner told a House committee that, if things continue as they are, the USPS could run out of money in under a year and might have to halt mail delivery.

Summary

  • Steiner told lawmakers directly: “At our current rate, we’ll be out of cash in less than 12 months,” adding that “less than a year from now, the Postal Service will be unable to deliver the mail if we maintain the status quo”; pressed for a specific date, he said USPS could exhaust funds as early as October 2026 if it pays all obligations on schedule, or February 2027 if it continues deferring some payments
  • USPS lost $9 billion last fiscal year, $9.5 billion in 2024, and $1.3 billion in just the first quarter of 2026; it has posted annual losses almost every year since 2007 as traditional mail volume has fallen by nearly 50 percent over the past 20 years
  • The agency is asking Congress to increase its borrowing limit with the Treasury Department and to allow higher stamp prices; it is also exploring options including cutting delivery from six days to five or three days per week, closing post offices, and raising first-class stamp prices from the current 78 cents to $1 or more

According to Federal News Network, the USPS has taken action to save money by temporarily pausing contributions to federal employee pensions. This could free up as much as $15 billion by postponing required payments until September 2030. The Postal Regulatory Commission approved this deferral, but it’s a short-term solution and doesn’t address the Postal Service’s underlying financial issues.

The U.S. Postal Service doesn’t rely on tax money to cover its costs; it pays for itself through the sale of stamps and fees for its services. However, with more people using email, texts, and online payments instead of traditional mail, the volume of first-class mail – the Postal Service’s biggest source of revenue – has significantly decreased. Now, Amazon, which is the Postal Service’s largest package delivery customer, plans to reduce the amount of mail it sends through the agency by as much as 66% by September.

USPS Crisis: What Breaks First If Congress Does Not Act

If the Postal Service ran out of money, the impact would be much bigger than just slower mail. About 6% of diabetes prescriptions are sent through the mail, and 3.7 million people with Medicare in areas with limited pharmacy access depend on the post office for their medications. Rural areas, which are legally guaranteed the same service as cities, would be especially hard hit by any cuts to service. A recent report from the Government Accountability Office confirmed the Postal Service’s current business model isn’t working and that immediate changes are necessary.

What Congress Is Being Asked to Do

Postmaster General Louis DeJoy has asked Congress for three things: to raise the limit on how much money the Postal Service can borrow, to allow it to raise prices more often than once a year, and to give it more leeway in fulfilling its obligation to deliver mail to every address. Some Republican lawmakers on the committee questioned whether the Postal Service had done everything it could to cut costs before asking for financial help. Representative James Comer, the committee chair, pointed out that Congress already passed a law in 2022 that is expected to save the Postal Service $107 billion.

What Happens to Mail If Nothing Changes

As crypto.news previously reported, the U.S. Congress faces a very busy 2026 with pressing issues like the conflict in Iran, negotiations surrounding the CLARITY Act, and preparation for midterm elections. A bill to financially support the U.S. Postal Service (USPS) would have to compete for attention with these already significant priorities. As crypto.news has pointed out, problems with government services, including mail delivery of important financial papers, checks, and official notices, can negatively impact markets that depend on physical documents. Steiner warned lawmakers that mail service would completely halt if the USPS can’t meet its financial obligations, including delivering prescription medications.

Read More

2026-04-10 01:14