USPS is warning that its cash could vanish within a year, and that leaves Congress with a hard choice: act now or watch the mail service slide deeper into crisis.
Quick Take
- Postmaster General David Steiner told lawmakers USPS could run out of cash in less than 12 months.[4]
- Brookings says USPS has hit its $15 billion borrowing cap and cannot cover losses with more debt.[2]
- USPS reported about $9 billion in losses in 2025 after a $9.5 billion loss in 2024.[4][6]
- USPS paused employer retirement payments to save cash, which shows severe short-term pressure.[9]
Cash Warning Lands on Congress
Steiner’s warning puts the postal fight back in Washington’s lap. Reuters reported that he told Congress USPS could run out of cash within a year unless lawmakers change the rules.[4] Fox Business reported that USPS has already reached its $15 billion borrowing cap, so it cannot keep stacking up debt to cover losses.[1] For readers tired of endless government drift, this is another case where a federal agency asks for more room after years of bad math.
Brookings calls the problem a structural mismatch between what Congress demands and how USPS is funded.[2] That matters because the issue is not just one bad quarter or a weak holiday season. USPS ended 2025 with about $8.2 billion in cash, which Brookings says covered only about 33 days of operations.[2] With annual losses still near $9 billion to $10 billion, the agency has very little cushion left.
🚨Report: Postmaster General David Steiner told Congress that USPS has a broken business model and needs help from lawmakers to turn around its operations.
“The bottom line is that we are out of cash. We are borrowing from our employees' retirement funds to continue operations” pic.twitter.com/Lkjy3MDQIJ
— The Calvin Coolidge Project (@TheCalvinCooli1) June 24, 2026
The Numbers Behind the Shortfall
USPS is not talking about a small gap. Reuters and the Associated Press reported net losses of $9 billion in fiscal year 2025, after a $9.5 billion loss in fiscal year 2024.[4][5][6] Fox Business also reported that USPS has suffered $118 billion in net losses since 2007.[1] Those figures help explain why management says normal borrowing is no longer enough to keep the system afloat.
Brookings says the Service first hit its borrowing ceiling in 2012 and hit it again in 2024.[2] The same analysis says the ceiling has been in place since 1992 and has never been adjusted for inflation or growth in delivery points.[2] That static cap is the heart of the postal argument on Capitol Hill. Supporters of relief say Congress tied USPS to a model that does not match modern costs or falling mail volume.
Why Critics Want More Oversight
Not everyone buys the full emergency pitch. The House Oversight Committee said Steiner blamed falling mail volume, inflation, and strict pricing rules for the losses.[11] But lawmakers also pressed USPS on management choices, including bonuses, hiring, and other cost cuts.[11] Senator Josh Hawley questioned bonuses, while Senator Rand Paul pointed to possible savings from a hiring freeze.[1] That criticism will sound familiar to voters who are tired of agencies asking for more money before fixing waste.
USPS has already taken steps that show how tight cash has become. A report from the American Postal Workers Union said the agency suspended its employer retirement contributions, about $200 million every two weeks, as part of a cash conservation plan.[9] That move may buy time, but it also shows the agency is squeezing every available dollar. For postal workers and taxpayers alike, it is a sign that the problem is no longer theoretical.
What Happens Next
The next step depends on Congress. Reuters and Fox Business both reported that Steiner wants lawmakers to change postal rules so USPS can avoid a cash crunch.[1][4] Brookings says no private capital market backstop exists for USPS, so once borrowing is maxed out, deficits become an immediate operating threat.[2] That leaves Congress with the same old choice it keeps avoiding: lift the cap, force deeper reforms, or risk a disruption that could hit paychecks and mail service.
There is still a broader debate over why USPS is losing money. Some analysts blame Congress for loading the agency with mandates that do not fit a normal business model.[9][12] Others say leadership must answer for weak pricing, falling volume, and years of missed chances to cut costs.[11] What is not in dispute is the central fact: USPS says it is nearly out of cash, and its current structure cannot absorb many more losses.[2][4]
Sources:
[1] YouTube – Postmaster General: “We are out of cash.”
[2] Web – The US Postal Service’s fiscal crisis – Brookings Institution
[4] Web – If Congress doesn’t lift a decades-old cap and allow the agency to …
[5] Web – US Postal Service to ask Congress for urgent reforms to survive …
[6] Web – US Postal Service faces cash crisis by 2027 – Facebook
[9] Web – The U.S. Postal Service is on track to run out of cash within a year …
[11] Web – U.S. Postal Service: Financial Outlook and Transformation Challenges
[12] Web – Primer on Postal Challenges
