United States Postal Service Could Go ‘Out of Business’ in the Next Year – Here’s What That Means for You
That headline grabbed your attention, huh?
USPS Could Run Out Of Cash Within A Year
On March 17, Postmaster General David Steiner spoke at a hearing before the House Oversight Subcommittee on Government Operations, where he warned that things can't continue at the United States Postal Service as they have been.
“At our current rate, we’ll be out of cash in less than 12 months. So in about a year from now, the postal service would be unable to deliver the mail.”
A Centuries-Old System At Risk
Yes, folks, we live in a really tumultuous time. In addition to all the sharp changes we've seen over the past year, we might have to pivot away from one of our most basic modes of communication that dates back to the 1700s.
In my research for this article, I looked up the history of the USPS. I was really surprised to learn how much it shaped our nation. According to the Smithsonian, our old pal Benjamin Franklin oversaw and streamlined Britain’s colonial mail service from 1753 to 1774. But by the early 1770s, the patriots had formed Committees of Correspondence and then the Constitutional Post, underground postal networks they used to “talk treason.”
Then, in 1775, the Continental Congress turned the Constitutional Post into the Post Office of the United States. The Post Office was used as a way to spread uncensored political news and inform the electorate, making it the country's first "communication superpower."
From Pony Express To Modern Mail
The Postal Office of the United States went from serving the 13 colonies to delivering correspondence across the country using the pony express, dog sleds, trains, and even the first motorized vehicles.
In 1970, Congress rebranded the department into the United States Postal Service. Though the federal government oversees the USPS, it operates as a business and receives no tax dollars. The USPS is self-funded but has received congressional relief and funding.
It's a fascinating history that could become nothing more than a chapter in our history books if Congress doesn't step in soon.
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Why The USPS Is Struggling Financially
According to CNN, back in 2021, Steiner’s predecessor put a 10-year plan in place to address the USPS’s financial struggles, but it still continuously loses money. According to the United States Postal Service, the agency reported a net loss of about $9 billion last fiscal year and $9.5 billion in 2024. It also posted a net loss of roughly $1.3 billion in the first quarter of fiscal year 2026. Electronic mail, texts, and the internet have made "snail mail" all but obsolete, even though package delivery is booming.
The Postal Service relies on revenue from stamps and packages to stay afloat, but legal obligations require it to provide mail services to all Americans, deliver mail across the United States at the same price, and limit how much the agency can borrow have made things increasingly difficult.
With losses mounting and gas prices going up at an alarming rate, the USPS could struggle to cover payroll and operating expenses.
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What Could Happen Next
Steiner asked Congress to raise the maximum allowed borrowing limit to buy time to figure out whether Americans still need the USPS and what the best path forward would be. He also said increasing the price of a stamp from 75 cents to 95 cents “would largely solve our controllable loss.” Most other countries also face these challenges and have raised mailing costs to cover deficits.
Talk Of Major Changes And Privatization
Back in 2025, The Washington Post reported that President Donald Trump wanted to fire the governing board of the USPS and merge the agency with the Commerce Department. That would take an act of Congress to strip away the Postal Service’s independence.
Experts warned that a change like that could impact how Americans receive their mail, including prescription drugs, checks, and mail-in ballots. They also warned it could be a first step toward privatizing the USPS, a direction some policymakers have supported in other sectors like Social Security and education.
What's Next?
As lawmakers debates the best way forward for the USPS, both sides of the aisle agree that it's a necessary function in society and have confidence in both the USPS employees and their leadership. It remains to be seen if we'll see yet another increase in postage prices, if they'll allocate tax dollars to funding the entity, or if they'll go in a different direction completely.
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Gallery Credit: Andrew Lisa