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https://federalnewsnetwork.com/agency-oversight/20...

The Postal Service is less than a year away from running out of cash and is calling on Congress to increase its limit to borrow money from the Treasury Department.

Postmaster General David Steiner told members of the House Oversight and Government Reform Committee on Tuesday that USPS is set to run out of cash in less than 12 months and that lawmakers need to act soon to keep the agency running.

“Less than a year from now, the Postal Service will be unable to deliver the mail if we maintain the status quo,” Steiner told the government operations subcommittee.

Congress passed long-awaited reform legislation in April 2022 that saved USPS $107 billion in total costs. USPS warned lawmakers that it was also on the verge of running out of cash at the height of the COVID-19 pandemic, and received $10 billion in pandemic relief funds.

Several House Republicans who played a critical role in passing the Postal Service Reform Act said they were skeptical of providing further assistance to USPS.

Jeff

Several House Republicans who played a critical role in passing the Postal Service Reform Act said they were skeptical of providing further assistance to USPS.

And with Amazon about to cut back dramatically on their “last mile” contract, which is said to be worth $6 billion in revenue…

It’s always been contentious, but the only options are more revenue (higher prices) or lower costs (close offices, reduce hours, slow down service) or some combination thereof. But everybody wants lower cost at some other post office, not their own, and Congresscritters always object when the cuts are in their districts.

You can’t raise junk mail prices too much or that trade will go to other media. You can’t raise premium rates for overnight, etc or it will go to private carriers. Raising 1st class rates and similar won‘t really get you there, and there will be lots of vocal “ouch”.

My idea is to reduce service: Business on Monday-Wednesday-Friday, Residential on Tuesday-Thursday-Saturday. You get to whack half the delivery costs: drivers, gas, vehicles, etc. That would also engender a lot of switching I suppose, but the cost savings would be huge. Could higher cost private carriers take share from such a low cost service? Dunno. Just a thought.

My idea is to reduce service...

I have been saying this for years, but I would cut delivery back to M/W/F and have branches open during those days and Saturday morning as well for those who have to go in. Denmark got rid of residential delivery altogether the end of 2025, going as far as to remove even their street postal boxes: https://www.theguardian.com/world/2025/dec/21/denm....

It's almost a miracle when we receive anything important in the mail. Delivery can certainly wait a day or two.

IP

Several House Republicans who played a critical role in passing the Postal Service Reform Act said they were skeptical of providing further assistance to USPS.

Easy to change their support to fully fund the USPS. End free mailing privileges for the politicians who do NOT support funding the USPS in full. Ka-CHING !!!

My idea is to reduce service:

The news reported one thing the honcho is crying about is the "burden" of delivering to every address, for the same price. I learned the hard way, that companies like UPS charge a premium to deliver out in the boonies. I had one eBay customer, right across the lake, in Wisconsin, where delivery cost more, from metro Detroit, than shipping the same item to LA. I use the Post Office almost exclusively now, due to the reliability of shipping costs.

Big picture time. The Post Office is established by the Constitution. Where does it say the Post Office has to pay for itself? Does the "War Department" cover it's own costs? Does the Education Dept cover it's costs? Does any other Federal department, outside of the IRS, and Customs, cover it's costs?

Steve

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