USPS Seeks Congressional Funding to Avoid Cash Shortage

The United States Postal Service plans to request a modest appropriation from Congress to address an urgent financial crisis. Postmaster General David Steiner announced the plan during a board meeting on August 7, 2026, warning that the agency is expected to run out of cash by early next year.

Historically self-funded, the agency reported a net loss of $2.5 billion in its fiscal third quarter. Steiner stated that the agency faces mandates that are inherently unsustainable and do not cover their costs, despite implemented expense controls and price increases.

To manage the immediate liquidity crunch, the agency has halted pension payments and hired the restructuring firm Alvarez & Marsal. If Congress does not provide a legislative package, the agency may be forced to close thousands of unprofitable post offices, reduce service levels, and implement further price hikes starting in 2027.