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Congress Watch · Report · File No. 261111-199

Postmaster General warns of 'drastic changes' to post offices unless Congress acts

The Postal Service lost $6.5 billion in the fiscal year that ended Sept. 30, and its chief says post offices and some mail service will be cut unless Congress acts. A new Democratic House and Senate take their seats in January.

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Postmaster General David Steiner warned this week that the U.S. Postal Service will have to close post offices and cut some mail service unless Congress steps in. The agency reported a loss of $6.5 billion for the fiscal year, the 12 months that ended Sept. 30 12.

That is better than last year's $9 billion loss, but Newsweek reports the continued drain is hurting the agency's ability to operate 1. USPS said its revenue rose 3.0 percent to $82.9 billion, while operating expenses fell 0.4 percent to $89.4 billion 2.

We will need to make drastic changes in the number of post offices and marketing mail service levels
David Steiner, Postmaster General1

What Steiner wants from Congress

Steiner said Congress has two options. It can remove the retirement mandates that keep the Postal Service from running as a self-sustaining business, or it can provide money to cover the shortfall 1. If it does neither, he said, lawmakers and the public must accept substantial cuts 1.

USPS's own release asks Congress to raise its $15.0 billion borrowing limit, which has not changed since 1992 2. It also asks for changes to how retiree costs are split between the Postal Service and the Treasury 2.

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The agency deferred about $2.6 billion in pension contributions this year, and it says those bills must eventually be paid 2. A regulator granted a temporary waiver of some pension payments in April 2026 2. The release says these steps are not long-term solutions 2.

The numbers behind the warning

Steiner said delivering to 170 million addresses six days a week costs $3.4 billion a year. He said 70 percent of routes lose money, and about 58 percent of the 18,000 post offices are unprofitable 1. USPS has posted net losses of around $120 billion since 2007, as first-class mail fell with the move to digital communication 1.

Newsweek reports that last year's deal with the Department of Government Efficiency to eliminate 10,000 postal jobs likely helped shrink this year's loss 1. Labor unions and congressional Democrats sharply criticized that move 1. Then-Rep. Gerald Connolly said it would have “catastrophic consequences for all Americans” 1.

Newsweek reports the agency is now expected to stay afloat until at least 2031, after emergency steps that included a temporary price increase in April and a multi-year deal with DHL 1. USPS Governor Amber McReynolds told Politico, “Ultimately, our fiscal cliff is here” 1.

What happens next

Newsweek reports USPS will look to the new Democratic-controlled Congress for next steps when it is seated in January 1. Steiner first asked lawmakers for help in June, when he told a Senate committee the agency was “out of cash” 1.

President Donald Trump has floated privatizing the Postal Service or merging it with the Commerce Department 1. Mark Dimondstein, president of the American Postal Workers Union, opposes that idea 1.

Plans to privatize the Post Office are about enriching Wall Street and not serving Main Street
Mark Dimondstein, President, American Postal Workers Union1

That matters because a post office closing or slower delivery would land hardest on people who depend on the mail and live far from other options. Steiner has not said which offices or services would go, so the details will matter once Congress takes up the question.

The Record

  1. The Postal Service's fiscal year ends with a net loss of $6.5 billion, down from $9 billion a year earlier 12.
  2. USPS releases its results, and Postmaster General David Steiner warns of drastic changes to post offices and mail service unless Congress acts 12.
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Sources

  1. Newsweek, “USPS Warns of Major Changes to Post Offices and Mail Delivery” (2026-11-11). newsweek.com/usps-warns-major-changes-post-offices-mail-deli
  2. U.S. Postal Service, “U.S. Postal Service Reports Fiscal Year 2026 Results” (2026-11-10). about.usps.com/newsroom/national-releases/2026/1110-usps-rep

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