WASHINGTON — The U.S. Postal Service’s financial challenges are expected to persist into the next decade despite recent measures that have delayed an immediate cash shortfall, according to testimony before Congress, regulatory reports and statements from postal officials released in June.
Postmaster General David Steiner told a Senate committee on Wednesday that the Postal Service remains under severe financial strain and is relying on temporary measures to maintain operations. In written testimony, Steiner said, “The bottom line is that we are out of cash,” adding that the agency has deferred certain retirement-related obligations to continue operating while seeking legislative changes.
The Postal Service has accumulated approximately $120 billion in losses since 2007, according to USPS officials and congressional testimony. Postal leaders attribute the financial pressures to a long-term decline in first-class mail volumes, rising operating costs and the requirement to provide service to nearly every address in the United States.
A report released in May by the Postal Regulatory Commission (PRC) found that the Postal Service recorded a net loss of about $9 billion in fiscal year 2025. The regulator said USPS has not posted a profitable year during the past decade and continues to face a substantial gap between assets and liabilities. The report also noted declining mail volumes and increasing operating expenses despite revenue gains from postage increases and package services.
Postal officials have implemented a series of measures intended to improve liquidity. Those steps include suspending certain pension contributions, reducing discretionary spending and raising postage prices. The PRC approved a multi-year waiver in April that allows USPS to redirect funds previously earmarked for some retirement obligations, a move regulators said could provide billions of dollars in financial relief through 2030.
At the same time, federal regulators have cautioned that the measures do not resolve the Postal Service’s underlying financial issues. Robert Taub, vice chair of the Postal Regulatory Commission, told lawmakers earlier this month that while USPS is not expected to run out of cash next year, “significant issues” remain and additional reforms will be necessary.
According to the Postal Service’s latest projections, a broader cash crisis has been pushed back but could emerge sometime between 2031 and 2034 if current trends continue. Postal leaders have urged Congress to consider structural changes, including compensation for certain unprofitable public-service obligations and adjustments to borrowing authority.
As of Thursday, no major postal reform legislation had been enacted, and discussions between USPS officials, regulators and lawmakers were continuing. Postal operations remain ongoing nationwide while policymakers consider proposals aimed at addressing the agency’s long-term financial outlook.
