US Postal Service reports $2 billion quarterly loss as cash crunch mounts
Source: Reuters
May 8, 2026 3:42 PM EDT Updated 10 hours ago
WASHINGTON, May 8 (Reuters) - The U.S. Postal Service on Friday reported a net quarterly loss of $2 billion as it faces a growing financial crisis and has warned it could run out of cash as soon as February. USPS said mail volumes fell another 6.3% in the three months ending March 31 as operating revenue rose 2.3% to $20.2 billion over the same quarter last year.
USPS last month said it would temporarily suspend employer payments for a federal pension program to conserve cash and plans to raise the price of first-class mail stamps to 82 cents from 78 cents, effective July 12. USPS has reported total net losses of $120 billion since 2007 as first-class mail, its most profitable product, has fallen to its lowest volume since the late 1960s.
"We are in a cash crisis, and we are now taking serious and appropriate steps to conserve funds to operate," Postmaster General David Steiner said. "To avoid disruption and to sustain our role supporting American commerce and the public, we require urgent Congressional action to expand our borrowing authority and to address outdated constraints on the organization."
USPS's suspension of employee pension contributions will conserve $200 million in cash every two weeks, or $2.5 billion through September 30, it said.
Read more: https://www.reuters.com/business/autos-transportation/us-postal-service-reports-2-billion-quarterly-loss-cash-crunch-continues-2026-05-08/
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Postal Service Reform Act of 2022
This bill addresses the finances and operations of the U.S. Postal Service (USPS).
The bill requires the Office of Personnel Management (OPM) to establish the Postal Service Health Benefits Program within the Federal Employees Health Benefits Program under which OPM may contract with carriers to offer health benefits plans for USPS employees and retirees.
The bill provides for coordinated enrollment of retirees under this program and Medicare.
The bill repeals the requirement that the USPS annually prepay future retirement health benefits.
Additionally, the USPS may establish a program to enter into agreements with an agency of any state government, local government, or tribal government, and with other government agencies, to provide certain nonpostal products and services that reasonably contribute to the costs of the USPS and meet other specified criteria.
The USPS must develop and maintain a publicly available dashboard to track service performance and must report regularly on its operations and financial condition.
The Postal Regulatory Commission must annually submit to the USPS a budget of its expenses. It must also conduct a study to identify the causes and effects of postal inefficiencies relating to flats (e.g., large envelopes).
The USPS Office of Inspector General shall perform oversight of the Postal Regulatory Commission.
