US Postal Service reports $2.5 billion loss and asks Congress for aid

The United States Postal Service posted a $2.5 billion net loss for its fiscal third quarter, about $600 million less than the same period a year earlier. Postmaster General David Steiner warned that without congressional action the agency may have to cut service levels, close thousands of unprofitable post offices and raise prices.

Steiner highlighted that legislation to add dozens of new ZIP codes could cost the cash‑strapped service $800 million, and the USPS is seeking approval for a new stamp price increase in January rather than waiting until July 2027. He also noted the agency is borrowing from employees’ retirement funds to stay afloat. The service delivers to 170 million addresses six days a week at a cost of $3.4 billion annually, with 70 % of routes and 58 % of its 18,000 post offices losing money. Since 2007, cumulative losses exceed $120 billion.

In May, the USPS suspended non‑essential travel, office‑supply and consulting spending, and temporarily halted employer contributions to a federal pension program, saving $2.5 billion through September and potentially $15 billion through 2030. It also raised the first‑class stamp price to 82 cents from 78 cents, effective July 12.