First Postmaster General David Steiner announced the U.S. Postal Service (USPS) is on schedule to run out of cash by February 2027, and now officials claim more changes are on the way since the 1970s-dated system “doesn’t work” anymore, The New York Times reports.
With all the changes coming out of the agency, David Marroni, a postal service expert at the Government Accountability Office, blames the outdated business model.
“The core issue here is the existing USPS business model, where it’s supposed to be financially self-supporting based on providing postal services, just doesn’t work today,” Marroni said.
There have
been several attempts to reform the Postal Service, as the agency’s business model has not changed much since its current iteration from more than 50 years ago, when Congress moved it from a cabinet-level department funded by taxpayers to a self-financed, independent agency.But with Steiner admitting the agency is strapped for cash and calling on lawmakers to consider drastic changes to save money, more money is set to come out of American voters’ pockets under the proposed changes.
“We can do whatever you want us to do. We’ve been doing it for 250 years,” he said
, according to The Sun. “But who’s going to pay for it? We cannot continue to do the things that lose us money on a very consistent basis.”Shortly after Easter, USPS suggested raising stamp prices by 5%, saying it would temporarily suspend some payments to a government retirement fund. The agency also called on lawmakers to make room to permit them to dial back on delivery days and give longer consideration to revenue-losing routes.
The commitment to upholding the agency’s “universal service obligation” to deliver to everyone in the nation comes with a hefty price tag: more than
$6.5 billion a year. Out of 10 USPS delivery routes, seven are “financially underwater,” Steiner told Congress during a March hearing. While it saves money, recipients in rural America will be affected the most; however, Maryland Democratic Rep. Kweisi Mfume vowed to work with Texas Republican Rep. Pete Sessions, a postal reform advocate, to ensure every American continues to be served.“Americans in every part of this country rely upon and really deserve prompt, reliable and efficient mail services,” Mfume said.
“We cannot lose the postal service as we know it.”
In addition to stamps, the Postal Regulatory
Commission approved a temporary 8% surcharge on packages amid rising fuel and transportation costs. While the increase leaves room for stiff competition from other delivery services such as FedEx, UPS, and Amazon, Americans rely heavily on the Postal Service for important mail delivery, including prescription drugs and election ballots.RELATED CONTENT: Florida Enacts SAVE Act, Requiring Driver’s Licenses To Include Citizenship Status