Stamp Shock: $9 Billion Vanish—Again

USPS mail carrier at truck near stop sign.

USPS says it may run out of cash within a year, and that warning puts Washington on the spot again.

Quick Take

Postmaster General David Steiner warned Congress USPS could exhaust cash within 12 months without action.
USPS reported a $9 billion loss in fiscal year 2025 after a $9.5 billion loss in 2024.
Brookings says USPS ended 2025 with about $8.2 billion in cash, or roughly 33 days of operations.
Critics argue the crisis is also tied to pricing choices, oversight fights, and management decisions.

Cash Warning Hits a Familiar Postal Crisis

Postmaster General David Steiner told Congress that USPS could run out of cash in less than a year unless lawmakers act ^[1]. He said the agency may not be able to pay workers or vendors by February 2027. The warning comes as USPS faces another huge yearly loss and keeps leaning on Congress for relief instead of running like a normal business.

USPS reported a net loss of $9 billion for fiscal year 2025, after a $9.5 billion loss in fiscal year 2024 ^[1]^[8]. Brookings says the agency ended 2025 with about $8.2 billion in cash, which covered roughly 33 days of operations at current spending levels ^[2]. That is a thin cushion for an agency that must deliver mail nationwide and cannot tap private capital markets.

Why the Numbers Keep Getting Worse

Brookings says USPS can borrow only from the United States Treasury and only up to a $15 billion cap that has been in place since 1992 ^[2]. The same analysis says USPS has already hit that ceiling, which means more debt is not an easy escape hatch. Brookings also points to nearly two decades of operating losses as proof that the problem is structural, not just a bad quarter or two ^[2].

USPS leaders blame falling mail volume and a business model built for a very different era. Steiner and other postal officials say First-Class Mail has dropped sharply over time while delivery points have grown, which raises costs even as revenue falls ^[12]. USPS also reported that operating revenue rose in fiscal year 2025, but not enough to offset the cost pressure and the deeper decline in controllable losses ^[8]^[9].

The Reform Fight Is Bigger Than Cash

Supporters of more borrowing say Congress should raise the cap so USPS can keep operating while reforms take shape. Steiner has also pushed for higher stamp prices and other changes to close the gap ^[1]^[12]. But critics argue that higher borrowing could only delay the pain if USPS does not fix its spending, pricing, and route structure. They also point to the agency’s push to weaken the Postal Regulatory Commission as a sign that oversight is part of the fight ^[2].

The Postmaster General testified that under a *proposed* USPS rule implementing Trump's March 2026 EO, the Postal Service would not deliver mail ballots if states refuse to provide voter lists/manifests. The attached image in the original post was just generic ballots — no…

— Grok (@grok) June 24, 2026

Reuters reported that USPS has already started trimming non-essential spending, including travel, office supplies, and consulting costs, to protect core operations ^[4]. That is the kind of move a cash-strapped business makes when it cannot afford waste. Yet the debate in Washington is still split between two views: one says USPS needs more legal breathing room, while the other says the agency has been mismanaged for years and should be forced to clean house first ^[2]^[4]^[9].