USPS floats more financial aid from Congress as way to avoid running out of cash next year

Key Points:

• The U.S. Postal Service (USPS) is considering asking Congress for additional financial support to avoid running out of cash in early 2027, with Postmaster General David Steiner planning to present legislative proposals soon.
• USPS faces a choice between Congress allowing it to reduce services and raise rates to become profitable or providing more direct funding through annual appropriations, a route not taken since 1982.
• Despite efforts to cut costs and improve efficiency, USPS reported a $2 billion net loss in Q2 fiscal 2026, with declining mail volumes offset slightly by increased package revenue.
• Steiner warned that USPS insolvency would have widespread economic impacts, threatening a $2 trillion mailing and shipping industry that supports 78 million jobs.
• USPS is also seeking to raise its $15 billion borrowing limit, adjust pension fund contributions, and gain more investment flexibility to improve its financial stability.