US Postal Service faces cash shortage, nearing borrowing limit

The United States Postal Service (USPS) has been posting net losses almost every year since 2007 as letter‑mail volume, its core revenue source, has fallen by about half. The agency has now reached its statutory borrowing limit and its leadership warns it could run out of cash within the year unless extraordinary measures are taken.

USPS is bound by a universal service obligation that requires delivery to every address in the United States six days a week at uniform, affordable rates. This mandate makes the service a lifeline for rural households, ballot delivery, prescription medications, online purchases and small‑business logistics. The organization employs roughly 600,000 workers, making it the third‑largest employer in the country and a significant source of middle‑class jobs, especially for Black Americans.

Any restructuring plan must balance the need to preserve this nationwide service with the agency’s severe financial strain.