The United States Postal Service (USPS) faces a critical financial crisis that could leave it without funds in less than a year if Congress does not act urgently, warned its Director General, David Steiner, who alerted to possible disruptions in mail delivery and payments to employees and suppliers.

In interviews and testimony before parliament, Steiner indicated that, at the current rate, the agency could run out of cash by early 2027. “How long are employees going to keep working and suppliers going if we don't pay them?” he asked, describing the scenario facing one of the oldest and most widespread institutions in the country.

The USPS, which operates as an independent agency funded primarily by the sale of postal services, is subject to a $15 billion debt ceiling in place since 1990, which it has already reached. Steiner believes that raising that ceiling is the most immediate measure to avoid a financial collapse.

A model in crisis and millions in losses

The agency has accumulated losses for years. In fiscal year 2025 alone, it reported a deficit of $9 billion, a figure similar to the $9.5 billion recorded in 2024. Since 2007, losses have exceeded $118 billion, largely due to the sustained traditional decline in mail volume. In the last two decades, the USPS has gone from handling around 220 billion pieces of mail per year to just over 110 billion, reflecting the rise of digital communications and online payments. Steiner emphasized that the agency maintains universal service obligations, such as delivering mail six days a week to more than 170 million addresses, including rural areas, without receiving direct funding from the federal budget. “We can do what the public wants… but someone has to pay for it,” he stated. Among the proposed solutions, the director proposed increasing the price of first-class postage, currently at 78 cents, to around 95 cents or even more, in addition to expanding services such as last-mile delivery to generate new revenue. However,these measures face resistance from both regulators and legislators. The Postal Regulatory Commission has limited rate increases, while some members of Congress warn about the impact on users. Political Pressure and Difficult Decisions: The USPS director will appear before Congress to request broader reforms, including changes to the pension system, health benefits for retirees, and greater financial flexibility. More drastic measures have also been considered, such as reducing delivery to five days a week or closing offices in remote areas, although these options face political opposition. The Government Accountability Office has warned that the USPS business model is “unsustainable” without structural changes, especially given future financial commitments related to the retirees' health care system. Although Congress passed a reform in 2022 that partially eased the agency's obligations, other key restrictions remain in place, limiting its ability to recover. Lawmakers from both parties agree on the urgency of action but disagree on the path forward. While some support expanding borrowing capacity, others oppose significant increases in postal rates. In this context, Steiner warned that time is running out. “To ensure our survival beyond next year, we need to increase our borrowing capacity,” he said. If this is not done, he added, the country could face the collapse of its postal system as it is currently known. The Government Accountability Office has warned that the USPS business model is “unsustainable” without structural changes, especially given future financial commitments related to the retirees' health care system. Although Congress passed a reform in 2022 that partially eased the agency's obligations, other key restrictions remain in place, limiting its resilience. Lawmakers from both parties agree on the urgency of action but disagree on the path forward. While some support expanding borrowing capacity, others reject significant increases in postal rates. In this context, Steiner warned that time is running out. “To ensure our survival beyond next year, we need to increase our borrowing capacity,” he said. Failure to do so, he added, could lead to the collapse of the postal system as it currently exists. The Government Accountability Office has warned that the USPS business model is “unsustainable” without structural changes, especially given future financial commitments related to the retirees' health care system. Although Congress passed a reform in 2022 that partially eased the agency's obligations, other key restrictions remain in place, limiting its resilience. Lawmakers from both parties agree on the urgency of action but disagree on the path forward. While some support expanding borrowing capacity, others reject significant increases in postal rates. In this context, Steiner warned that time is running out. “To ensure our survival beyond next year, we need to increase our borrowing capacity,” he said.Failure to do so, he added, could lead to the collapse of the postal system as it currently exists.