WASHINGTON, D.C. — The U.S. Postal Service could consider closing thousands of unprofitable post offices, reducing service levels and raising prices if Congress does not act on proposed changes aimed at addressing the agency’s financial problems, Postmaster General David Steiner said.
In prepared remarks delivered Aug. 7 during an open session of the USPS Board of Governors, Steiner said the Postal Service continues to face what he described as an urgent financial crisis despite recent improvements in its finances and operations.
Steiner said USPS performed $600 million better during the quarter than during the same period last year. The agency has also reduced work hours and improved service performance, he said.
However, Steiner said the Postal Service’s business model has produced a 17-year imbalance between costs and revenue that will require congressional involvement.
USPS is preparing a legislative package for Congress and the administration that would seek an appropriation to invest in the Postal Service and the broader economic activity surrounding it. Steiner said the proposal would also include changes to benefit plans and increased borrowing authority to address more than $20 billion in historical underinvestment in Postal Service assets and employees.
Steiner said the Postal Service believes such an investment could be temporary as the agency works to reduce costs and increase revenue.
If an agreement on legislation cannot be reached this year, however, Steiner said USPS would have to consider other options to reach financial self-sufficiency.
Because the busy holiday mailing and shipping season is approaching, Steiner said USPS would not take such action until after the new year.
The alternatives “would certainly have to entail changes that will impact service like taking a look at our service levels and closing thousands of unprofitable post offices, as well as raising prices,” Steiner said.
Pricing is already playing a significant role in the Postal Service’s strategy. Steiner said that despite declining mail volume, mail revenue has increased because of higher prices, a trend that has occurred in 14 of the past 16 quarters.
The Postal Service recently requested authority for a January 2027 price increase for its market-dominant products. Moving an increase to January instead of July would be worth an estimated $600 million to $800 million to USPS, according to Steiner.
Steiner also criticized proposed federal legislation that would create 83 new ZIP Codes. USPS estimates the measure would cost more than $800 million and affect service both in the new ZIP Codes and surrounding areas. He instead urged the Senate to advance a bipartisan alternative that would direct USPS to reform its process for addressing community ZIP Code needs without the same financial or delivery effects.
Steiner said the ultimate decision about the Postal Service’s future rests with policymakers, including whether USPS should maintain current service regardless of cost or provide only the level of service it can financially sustain.
