Why It Matters
The United States Postal Service (USPS) faces an existential cash crisis. At a Senate hearing on June 24, Postmaster General David Steiner warned the agency could run out of cash as soon as September without congressional intervention. The Trump administration backs aggressive restructuring, but Democrats are pushing back against a controversial voting rule that the agency proposed under a presidential order.
The Big Picture
Steiner’s testimony marked a dramatic shift in USPS leadership’s approach to the agency’s financial crisis. The Postal Service has lost more than $117 billion since 2007. It posted a projected loss of $1.95 billion in the second quarter of 2026 alone, marking its fifth consecutive quarterly loss. The agency has experienced 19 consecutive years of operating losses.
The crisis stems from several factors. First class mail is down 34 percent since 2014, yet the Postal Service grew its career workforce by 9 percent over the same period. Labor comprises about 80 percent of USPS costs, compared to closer to 60 percent at the United Parcel Service (UPS).
The 2022 Bipartisan Postal Services Reform Act shifted $107 billion away from the USPS, and the agency has lost another $26 billion since that law passed. USPS has maxed out all $15 billion it can borrow from the Treasury, while stamp prices are rising from 78 cents to 82 cents.
Steiner took over as Postmaster General on July 15, 2025, after serving as CEO of Waste Management, Inc. from 2004 to 2016. His predecessor at USPS, Louis DeJoy, insisted USPS could fix itself without Congress. Steiner is taking the opposite approach, asking lawmakers for help.
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