Postmaster General David Steiner warned Congress the U.S. Postal Service faces a cash shortage within a year unless drastic measures are taken. The agency’s outdated business model, unchanged since 1970, cannot sustain operations against declining first-class mail volume. This financial strain pushes leadership toward unpopular service reductions and price adjustments.

To bridge recent losses—totaling $18.5 billion over fiscal years 2024 and 2025—the USPS proposed a 5 percent stamp price increase and temporarily suspended some retirement fund contributions. Suspending those payments is intended to free up about $2.5 billion this fiscal year alone, providing immediate operational liquidity.

Lawmakers face pressure regarding service cuts, particularly reducing delivery from six days to five, which could save up to $3.5 billion annually but disproportionately affect rural areas. Furthermore, the agency is capped at a $15 billion borrowing limit, restricting flexibility despite potential investment gains from retirement funds.

Delivery of vital mail, including prescriptions and ballots, depends on Congress addressing these structural issues. The immediate proposed stamp hike would place the 'forever' stamp at 82 cents, though Steiner desires prices closer to a dollar to match international peers.