The U.S. Postal Service disclosed a $2 billion loss for the latest quarter, prompting Postmaster General David Steiner to declare a cash crunch. He urged Congress to broaden borrowing limits and lift antiquated rules that bind the agency. With revenues slipping and expenses rising, the service teeters on the brink of insolvency. The loss follows a year of declining first‑class revenues and mounting pension obligations.

Mail volume has slumped 49% since its 2006 peak, falling to 108.7 billion pieces last year. The decline reflects a shift toward digital communication, leaving mostly “marketing mail” in the mix. Despite price hikes and cost cuts, the USPS’s legacy business model cannot offset the erosion of core letter and bill traffic. Small‑business advertisers now dominate the remaining shipments, though they receive steep discounts.

Congressional inaction threatens more than a public utility; it jeopardizes a $70 billion asset base that funds pensions and rural banking services. Investors watch the postal bond market closely, as any default could ripple through municipal finance. Without reform, the agency may be forced to shutter underperforming facilities, accelerating job cuts across the network.