Tuesday, 11 August 2026, 9:22
The U.S. Postal Service plans to ask Congress for a "relatively modest" appropriation to keep operating, breaking with its long-standing self-funded model. Postmaster General David Steiner made the announcement Friday during a USPS board meeting, acknowledging a "continuing and urgent financial crisis."
USPS has historically covered its costs through postage and package revenue, not regular taxpayer appropriations. That would change under a legislative plan the agency will submit to lawmakers. Steiner said the appropriation would be adjusted for inflation and could shrink as USPS becomes more profitable.
"As things stand, the Postal Service is expected to be self-sustaining while, at the same time, fulfilling mandates that are inherently unsustainable and do not cover their costs," Steiner said.
USPS reported a net loss of $2.5 billion in its fiscal third quarter, an improvement from the $3.1 billion loss a year earlier. Still, years of high operational costs and declining mail volumes have pushed the agency close to insolvency. Steiner previously warned that USPS could run out of cash by early next year.
Without legislative relief, USPS may consider:
No major changes would happen until after the 2026 winter holiday shipping season. Any action would begin in 2027.
The outcome matters for California's 39 million residents, who depend on USPS for mail, prescription deliveries, and election ballots. Rural communities in counties like Mendocino and Alpine could feel service cuts most acutely, though no state-specific closures have been proposed.
The Postal Service has struggled for years as first-class mail volume declined and a 2006 law required it to pre-fund retiree health benefits. That mandate, along with rising delivery costs, has driven staggering losses. The agency recently hired restructuring adviser Alvarez & Marsal to develop a recovery plan.
The request for congressional funding marks a turning point for an agency that has long prided itself on self-sufficiency. Whether lawmakers provide the money or force deeper cuts, the decision will shape postal service for millions of Americans.
