US Postal Service Faces Cash Crunch, Warns of Potential Collapse

Postmaster General says agency will run out of money within a year without Congressional action

Published on Mar. 6, 2026

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The U.S. Postal Service is facing a severe financial crisis and will run out of cash within a year unless Congress lifts a decades-old cap on the agency's borrowing ability, according to Postmaster General David Steiner. Steiner warned that without additional funding, the Postal Service may not be able to pay its employees or vendors, potentially leading to dire consequences for mail delivery across the country.

Why it matters

The Postal Service is a vital part of the nation's infrastructure, providing universal mail delivery to every address in the United States. Its potential collapse would have widespread economic and social impacts, disrupting businesses, households, and the overall flow of commerce and communication. The financial struggles of the USPS also highlight the need for Congress to address longstanding structural issues facing the agency.

The details

Steiner, who took over as Postmaster General last year, said the Postal Service's $15 billion borrowing cap, which has been in place since 1990, is a major constraint. He called on Congress to lift this cap to give the agency more financial flexibility. Steiner also said the Postal Service needs the ability to raise postage prices high enough to cover its losses, which totaled $9 billion in fiscal year 2025. However, an independent agency that oversees the USPS has so far prevented the agency from implementing such price increases.

  • The Postal Service is expected to run out of cash by February 2027 if Congress does not act.
  • Steiner is scheduled to testify before Congress later this month about the agency's financial struggles.

The players

David Steiner

The new Postmaster General of the United States Postal Service, who previously served as the CEO of a major waste management company and as a member of the FedEx board of directors.

Postal Regulatory Commission

An independent agency created by Congress to oversee the United States Postal Service, which has so far prevented the USPS from raising postage prices to cover its losses.

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What they’re saying

“How long are employees going to work and vendors going to show up if we're not paying them?”

— David Steiner, Postmaster General (Associated Press)

“If the Postal Regulatory Commission adopted our pricing model, problem solved.”

— David Steiner, Postmaster General (Associated Press)

What’s next

Steiner is scheduled to testify before Congress later this month to discuss the Postal Service's financial struggles and the need for legislative changes to address the agency's funding challenges.

The takeaway

The financial crisis facing the United States Postal Service highlights the need for Congress to take immediate action to address the agency's structural issues, including lifting the cap on its borrowing ability and granting it more flexibility to raise postage prices. Failure to do so could lead to the collapse of a vital national institution with far-reaching consequences for businesses, households, and the overall economy.