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USPS Warns It Could Run Out of Cash Within a Year, Urges Congress to Act

The postmaster asked Congress to lift the $15 billion borrowing cap to avert a looming cash shortfall.

Overview

  • Postmaster General David Steiner told a House panel the agency could exhaust cash as soon as October or November 2026 if required government payments continue, or by early 2027 if they are deferred again.
  • USPS has reached its statutory $15 billion Treasury debt limit and is seeking increased borrowing authority to buy time for broader fixes.
  • Steiner proposed raising the first‑class stamp to about 90–95 cents from 78 cents, saying that level would largely eliminate the agency’s controllable losses and remains low by international standards.
  • Cost‑cutting options under discussion include ending Saturday letter delivery, which USPS estimates would save roughly $3 billion annually, and closing some small post offices for about $840 million in additional savings.
  • Lawmakers signaled mixed support for new debt or higher rates as the GAO declared the current business model unsustainable, and separate reporting indicated USPS risks losing a large share of Amazon package volume if contract talks falter.