The U.S. Postal Service will warn lawmakers Tuesday that it faces a severe financial crisis and could run out of money within a year without major reforms. Postmaster General David Steiner plans to request higher borrowing limits and stamp price increases, potentially raising first-class stamps from 78 cents to over $1.
WASHINGTON – The United States Postal Service plans to deliver an urgent message to lawmakers Tuesday: without dramatic changes, the agency could exhaust its cash reserves in under 12 months.
During testimony before a House Oversight subcommittee, Postmaster General David Steiner will outline the agency’s dire financial situation and request permission to implement sweeping changes to keep operations afloat.
Among the cost-cutting measures Steiner will propose: eliminating Saturday mail delivery, shuttering postal facilities, and dramatically increasing the price of first-class stamps from the current 78 cents to potentially more than one dollar.
According to written testimony obtained by Reuters, Steiner will emphasize the critical nature of expanding the postal service’s borrowing authority.
“In order to ensure our survival beyond next year, we need to increase our borrowing capacity so that we don’t run out of cash,” Steiner’s prepared remarks state. “The failure to do this could lead to the end of the Postal Service as we know it now.”
The postal service’s financial troubles highlight ongoing challenges facing the government agency as it struggles to adapt to changing mail delivery demands and rising operational costs.
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