The United States Postal Service (USPS) is facing a severe financial crisis, reporting a staggering $9.5 billion loss for the past year, prompting warnings of further price increases and an urgent call for legislative reform.
A Deepening Financial Crisis
New Postmaster General David Steiner, confronting the agency's dire situation, stated that the USPS is grappling with a 'significant systemic annual revenue and cost imbalance.' He emphasised that to correct these financial imbalances, the service must explore new revenue opportunities and public policy changes to improve its business model.
The scale of the problem is monumental. The latest loss contributes to a devastating total of more than $100 billion in losses since 2007. This financial haemorrhaging has persisted despite significant restructuring and legislative reforms over the years. In a previous effort to provide relief, the U.S. Congress in 2022 approved about $50 billion in financial support for the Postal Service to be distributed over a decade.
Proposed Price Hikes and Workforce Reductions
In a separate announcement on Friday, 14th November 2025, the USPS proposed substantial price increases for several key services. The planned hikes include a 6.6% increase for Priority Mail, a 5.1% rise for Priority Mail Express, a sharp 7.8% jump for USPS Ground Advantage, and a 6% increase for Parcel Select. Notably, the price of first-class mail stamps was not part of this latest proposal, having already risen to 78 cents from 73 cents earlier this year.
The cost of sending a letter has soared dramatically for ordinary Americans. Since early 2019, stamp prices have increased by a staggering 46%, from 50 cents to the current 78 cents.
Concurrent with these financial measures, the agency has been aggressively reducing its operational costs through workforce cuts. The USPS, which employs 635,000 people, reduced its workforce by 10,000 workers this year through a voluntary retirement programme. This downsizing occurs against a backdrop of falling demand, with mail volumes dropping 5% in the 12 months ending September 30 to their lowest level since 1967.
An 'Urgent Need' for Legislative Action
Amber McReynolds, re-elected as chair of the Postal Board of Governors, highlighted the immense pressure on the service, pointing to 'long-standing and unnecessary restrictions' that are crippling its financial performance. She declared an 'urgent need for executive and legislative action' to secure the long-term financial sustainability of this vital national institution.
The USPS is now seeking a comprehensive package of reforms to secure its future. Key proposals include changes to retiree pension benefit funding rules, diversification of pension assets, raising the statutory debt ceiling, and reforming workers' compensation administration.
The agency's troubles have not gone unnoticed at the highest levels of government. In February, Republican President Donald Trump labelled the USPS a 'tremendous loser for this country' and revealed he was considering merging the Postal Service with the U.S. Commerce Department—a move that Democrats argued would violate federal law.
Under pressure from the White House, the previous Postmaster General, Louis DeJoy, resigned in March. During his nearly five-year tenure, DeJoy led a drastic restructuring effort that succeeded in cutting forecast cumulative losses over a decade to $80 billion from an initially projected $160 billion.
