USPS asks Congress for modest annual funding to avert future cash shortfall

The largely self-funded United States Postal Service told lawmakers it needs a relatively modest, temporary appropriation from Congress to keep its finances stable. Postmaster General David Steiner explained that, while the agency projected a cash shortfall as early as 2027, suspending its contributions to the Federal Employees Retirement System now extends the runway to between 2031 and 2034. Steiner cautioned that without new funding, USPS could be forced after January 2027 to cut costs by lowering service standards, raising rates or shuttering thousands of unprofitable post offices.

The agency has not sought the public-service reimbursement it is allowed to request—up to $460 million per year—since 1982, and it currently receives only modest funds for a program serving legally blind customers. Steiner emphasized that a temporary investment would benefit the broader mailing and shipping industry, which supports millions of jobs.