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USPS Warns of Major Changes to Post Offices and Mail Delivery
Newsweek • • business
Key Points:
- The U.S. Postal Service (USPS) reported a $6.5 billion loss for the fiscal year and warned it must make drastic service cuts unless Congress intervenes to address its financial crisis.
- Postmaster General David Steiner urged Congress to either remove retirement funding mandates or provide additional funding to prevent severe reductions in post offices and mail services.
- USPS has faced persistent losses since 2007 due to declining first-class mail volume and currently operates with many unprofitable routes and post offices, borrowing from employee retirement funds to continue operations.
- Previous cost-cutting measures, including job cuts negotiated by former Postmaster General Louis DeJoy, have reduced losses but faced criticism from labor unions and Democrats for potential negative impacts on service and workers.
- The agency looks to the incoming Democrat-controlled Congress for solutions, while proposals to privatize USPS have been strongly opposed by postal workers who warn such moves could increase prices and harm service quality.
