In a significant address that charts a new course for the iconic American institution, Postmaster General David Steiner has declared that the United States Postal Service (USPS) cannot simply cut its way to financial stability. He insists the 150-year-old agency must actively grow its revenue to secure its future.
A New Strategy for an Old Institution
Speaking at a Postal Board of Governors meeting in Washington on Friday, 14th November 2025, Steiner was unequivocal about the path forward. "I've taken to saying that we cannot cost-cut our way to prosperity," he stated. "We have to grow."
The new Postmaster General, who began his role in July after serving on the board of FedEx, outlined a plan to leverage the service's most unique asset: its legal obligation to deliver to every address in the United States. He believes this can be monetised through an expansion of final, or "last-mile" delivery services for other companies.
Steiner revealed that the USPS is currently in negotiations with private parcel giant UPS and other similar firms to handle the most expensive and labour-intensive part of the delivery process—getting a package to an individual home or business. The ambition is to extend this programme to large and small retailers, offering them same-day and next-day delivery options.
"We've begun discussions with a number of retailers and the desire for fast, reliable and affordable delivery is certainly strong among all retailers," Steiner confirmed. He emphasised that the service's value lies in its unrivalled network, visiting every address six and often seven days a week.
Deep-Rooted Financial Challenges
This push for growth comes against a backdrop of severe financial pressure. A new report released on the same day showed that while operating revenue reached $80.5 billion—an increase of $916 million from the previous fiscal year—the postal service still suffered staggering net losses of $9 billion.
While this marks a slight improvement on the previous year's $9.5 billion loss, it underscores the scale of the challenge. Amber McReynolds, re-elected as chair of the Board of Governors on Friday, pointed to systemic issues weighing down the USPS balance sheet.
She cited "long-standing and unnecessary restrictions" and called for urgent executive and legislative action. Key among these restrictions is a requirement for the USPS to pay a "disproportionate share" into its retiree system compared to other federal agencies.
Furthermore, McReynolds explained that the service is only permitted to invest its retirement funds in treasury securities, missing out on potential returns from a diversified portfolio—a move she claims has cost hundreds of billions of dollars. She also urged Congress to update the USPS pricing system, its workers' compensation programme, and its borrowing limits, which have remained unchanged since 1991. "This is urgent and it is time for action," she stressed.
Modernisation and Reassurance on Privatisation
Despite the need for growth, Steiner acknowledged that cost control and efficiency remain critical. He highlighted plans to integrate innovative methods, including artificial intelligence into the USPS logistics network. However, he argued that to truly compete, the service needs capital and the ability to borrow freely, unlike its private sector rivals. "We should be able to borrow like our competitors, who are not limited by statute," he said.
Steiner, who has visited over 20 postal facilities in his first 100 days, committed to continuing the $40 billion, 10-year modernisation plan launched by his predecessor, Louis DeJoy. He reported that on-time mail delivery is steadily improving, with most customers now receiving their mail and packages in under three days on average.
As the busy holiday season approaches, Steiner expressed confidence, noting that $20 billion has been invested in mail processing and logistics over the past four years. Due to a more stable workforce, the service will only need to hire a "modest" 14,000 seasonal employees.
Finally, the board directly addressed concerns about privatisation, an idea previously floated by President Donald Trump and his former adviser, Elon Musk. Chair Amber McReynolds sought to quash the notion definitively. "There are no proposals or plans to privatise the postal service," she stated, confirming that both the new Postmaster General and the board are united in this position.
