The US Postal Service (USPS) will run out of funds by February 2027 unless lawmakers lift a $15bn cap on its borrowing, Postmaster General David Steiner has warned. In an interview with the Associated Press, Steiner said the agency, which relies on stamps and service fees rather than tax dollars, would be unable to pay employees and vendors if the cap remains.
The USPS has operated at a financial shortfall almost every fiscal year since 2007, as digital communication has reduced first-class mail volumes. The number of mail pieces handled has halved from 220bn to 110bn annually. Steiner noted that this represents $86bn in lost revenue over 15 years, a loss he described as catastrophic for any delivery company.
Steiner, who took over as postmaster general in July 2025, is scheduled to testify before Congress this month. He has called for changes to federal law that caps borrowing, as well as authority to raise postage prices, including increasing the price of a first-class stamp from $0.78 to $0.95. He also advocates expanding the 'last-mile' delivery network to boost revenue.
Despite previous discussions about privatising the USPS or moving it under the commerce department, Steiner has stated his belief in the current structure. 'I do not believe that the postal service should be privatised or that it should become an appropriated part of the federal government,' he said in a video message to employees. 'I believe in the current structure of the postal service as a self-financing, independent entity of the executive branch.'
Past postmasters general have repeatedly sought changes to the agency's rules. In 2022, Congress passed the Postal Service Reform Act, which ended a requirement to pre-fund retiree health benefits, but other constraints remain. Steiner stressed that further intervention is needed to prevent a cash crisis.
