The Postal Service expects to withstand the financial impact of the coronavirus impact better than it anticipated a few months ago, but warns that it could still run out of cash before the end of 2021 without long-term reform from Congress.
In recent briefings with mailing associations and congressional oversight committees Postal Service executives presented two likely scenarios for the agency’s short-term financial outlook.
USPS now estimates it will run out of cash in April 2021, if package volumes return to pre-COVID levels. If, however, package volume stay 15% above pre-COVID levels, the agency says it would run out of cash in October 2021.
USPS delivered the updated forecasts after Senate Homeland Security and Governmental Affairs Committee Chairman Ron Johnson (R-Wis.), House Oversight, Reform Committee Ranking Member Jim Jordan (R-Ohio), and Rep. Jody Hice (R-Ga.) asked the agency to reassess their financial projections earlier this month.
The new forecast predicts the Postal Service can weather the coronavirus pandemic better than what the agency first told congressional committees in April. Those forecasts predicted USPS would run out of cash anytime between this month and September.