U.S. Postal Service Postmaster David Steiner declared the agency faces imminent collapse, stating it will be out of cash in less than 12 months unless Congress acts. Speaking at a congressional hearing, Steiner detailed the agency's dire financial trajectory: it incurred net losses of $9.5 billion in 2024 and $9 billion in 2025, with a $1.3 billion loss in the first quarter of 2026. The service, mandated to be self-sufficient, is constrained by a federally imposed borrowing limit.

Steiner requested two critical actions: loosening regulations to allow higher postage rates and increasing the agency's borrowing authority. This plea comes despite recent federal relief and follows a failed 10-year recovery plan launched five years ago after $87 billion in losses over 14 years. The hearing highlighted deep divisions, with lawmakers like Virginia Foxx questioning the service's efficiency and management's role in the crisis.

Lawmakers like Pete Sessions acknowledged the need for tough choices, shifting focus from congressional aid to the Postal Service's own cost-cutting efforts. Steiner emphasized that borrowing more buys time to determine the service's future, but the path forward remains fraught with political and operational challenges.