Postal Cliff: USPS Warns It Could Run Out of Cash by 2027; $0.95 Stamps Proposed
the staff of the Ridgewood blog
WASHINGTON, D.C. — The future of the U.S. mail is facing a “critical juncture.” In a high-stakes congressional hearing this week, Postmaster General David Steiner issued a stark warning: without immediate intervention, the United States Postal Service (USPS) will run out of money in less than 12 months.
The announcement has sent shockwaves through the halls of Congress, as lawmakers weigh the possibility of a full stoppage in mail service against the reality of a nearly $1.00 First-Class stamp.
The $0.95 Stamp: A Necessary Fix?
To bridge the massive funding gap, Steiner is proposing a significant hike in postage. He has asked for the authority to raise the price of a First-Class stamp from its current 78 cents to as high as 95 cents.
Steiner argues that even at nearly a dollar, American postage remains a global bargain.
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The Comparison: Stamps in France cost nearly $3.00, while in England, they are approximately $2.50.
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The Distance: “We deliver from the tip of Puerto Rico to the tip of Alaska for 78 cents—a distance of 5,000 miles,” Steiner told the House Oversight Subcommittee. “In Europe, the longest distance is often 600 miles.”
Why Is the USPS Sinking?
The financial crisis is driven by a staggering decline in mail volume. Steiner noted that the USPS has plummeted from a peak of 213 billion pieces of mail annually to just 109 billion.
“If all that lost volume was paid at the current price of 78 cents, that is about $81 billion in lost revenue,” Steiner explained. “No company could weather that much revenue loss.”
Divided Opinions in Congress
The proposal is already meeting stiff resistance. Subcommittee Chairman Rep. Pete Sessions (R-Texas) voiced opposition to the price hike, insisting that the agency must find other ways to achieve financial security.
Beyond the stamp hike, Steiner is asking Congress for two “lifelines”:
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Increased Borrowing Authority: Raising the current $15 billion cap to “buy time” for long-term fixes.
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Regulatory Relief: Allowing the USPS more flexibility in how it invests its retiree and health pension funds.
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Can everyone please cut the crap? Yes mail volume is severely down. Can anyone guess what hasn’t decreased? The same thing that NJ state union workers never see a decrease in (Which is why your taxes are the highest in the nation);
Insane paychecks, Cadillac benefits, and absolutely unconscionable pensions.
Same goes for the PD, Fire and DPW workers on the state / county and municipal level. Golden salaries/pensions and a mountain of other bullshit. WTF who get’s unused vacation time??? in the thousands of dollars??
Enough is enough. The pigs at the trough just won’t stop until we say NO MORE
Start by shutting down post offices…there’s WAY to many of them in all this rinky dink towns across America.
Oh crap. You mean I might not receive the Value Coupons and credit card offers.
Bezos built his fortune on the back of the USPS.
My brother mailed me a check back in July. He lives in South Carolina. I’m still waiting for the check to arrive here….
the check is in the mail…….
I like our carriers but there IS a limit on what sort of salaries and benefits should be paid for a non-skilled job.
I only use on-line banking since the post office was losing my payments via check on a regular basis
I will never used them again for priority mail. Since I use ‘informed delivery’ I saw at least 5 times in the past few months my packages SITTING there at a postal distribution center for days
Apparently the DEI folks are running the USPS… right into the ground
It simply needs to go away. 6X/week delivery is ridiculous. I receive nothing of value in my mailbox, ever. Go online, pay online, there is no need for the USPS, period. Like buggy whip makers, their time has come and gone. Plus, they suck at what they do.
Well, I appreciate the Postal Service, am glad it’s there, and hope it stays! I use it to send and receive cards, letters and packages. I enjoy seeing what new commemorative stamps are issued. I appreciate the physical offices that exist all over this country, many of which have works of art displayed that were commissioned by FDR during the Great Depression. I think these civic institutions are important and deserve our support. Privatization only benefits oligarchs.