USPS Faces Financial Turmoil: Seeks Legislative Reforms

The U.S. Postal Service (USPS) reported a $9 billion annual loss, prompting Postmaster General David Steiner to call for administrative and legislative reforms. Proposals include raising prices and altering pension funding rules. Meanwhile, USPS plans price hikes for several services but not for first-class mail.

The U.S. Postal Service (USPS) announced its intent to implement new administrative and legislative reforms as it reported a $9 billion annual loss for the fiscal year, a slight improvement from the previous year's $9.5 billion deficit. Under Postmaster General David Steiner, USPS aims to address its persistent financial challenges through exploring new revenue streams and necessary public policy adjustments.

USPS proposed price increases for several services, with priority mail seeing a 6.6% hike and ground advantage up by 7.8%. However, first-class mail prices remain unchanged. In the face of political pressure and restructuring challenges under former President Donald Trump, USPS aims to redefine its business model to ensure sustainability.

Mail volumes continue to decline, reaching their lowest levels since 1967. Workforce reductions and a voluntary retirement program cut employee numbers by 10,000 this year. USPS again chose not to increase stamp prices in January, despite a significant rise of 46% since early 2019.

(With inputs from agencies.)