USPS may run out of cash within a year, postmaster general warns

The head of the US Postal Service warned lawmakers the agency could run out of cash within a year unless Congress steps in, calling the situation a "critical juncture." David Steiner told a House Oversight hearing, "In about a year from now, the Postal Service would be unable to deliver the mail if we continue the status quo." He added, "I like to say that we got thrown overboard and into the water.

But, instead of tossing us a life jacket, we were thrown an anchor." USPS has not turned a profit since 2006. Last fiscal year it lost $9 billion after a $9.5 billion loss the year before, and its debt limit stands at $15 billion. Steiner pointed to a long-term drop in mail volume, from 213 billion pieces at its 2006 peak to about 109 billion today, a decline he said represents roughly $81 billion in lost revenue at current stamp prices.

He reported that 71% of USPS delivery routes are losing money. The agency also faces the risk of losing a large share of its package business with Amazon.

United States

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