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.