Postmaster General Warns USPS Could Run Out of Cash Within a Year as Amazon Plans Sharp Volume Cut and Stamp Hike to 90–95 Cents
Postmaster General Steiner told Congress he could run out of cash within a year—sharpening an earlier 2027 warning after a reported $9 billion 2025 loss—and urged lifting the long‑standing $15 billion borrowing cap and easing pension investment rules to buy time. He said USPS may need to raise first‑class postage from 78¢ to 90–95¢ as Amazon, the service’s biggest customer, plans to cut USPS volume by as much as two‑thirds by September, a move that heightens risks to mail‑order prescriptions and is intensifying debate over price hikes, service cuts or federal aid.
📌 Key Facts
- Postmaster General Louis DeJoy warned USPS could run out of cash within a year if current trends continue, sharpening an earlier 2027 insolvency warning; he tied that warning to a March 4 Associated Press interview and reiterated it while testifying before the House Oversight Committee on March 17, 2026 at 2 p.m. EDT.
- DeJoy told lawmakers USPS posted a $9 billion loss in 2025 and argued Congress should immediately lift the long‑standing $15 billion borrowing cap and allow USPS pension funds to invest in securities beyond Treasury bills to buy time for broader fixes.
- To address controllable losses, DeJoy said USPS may need to raise the price of a first‑class stamp from 78 cents to between 90 and 95 cents, noting U.S. first‑class postage is now among the lowest in the industrialized world (about $3 in France and $2.50 in the U.K.).
- Amazon, described as USPS’s biggest customer, plans to cut the mail volume it sends through USPS by as much as two‑thirds by September after talks over a long‑term deal collapsed; Amazon says USPS 'abruptly walked away at the eleventh hour' from more than a year of negotiations.
- News coverage links the USPS cash warning to risks for mail‑order prescriptions: roughly 6% of U.S. diabetes prescriptions are mailed, and about 3.7 million Medicare enrollees live in areas with limited pharmacy access and high reliance on mailed medications.
- A coalition of mailers led by Keep US Posted criticized USPS for 'raising prices while reducing service,' warning that the agency’s current strategies could push it toward requiring a taxpayer bailout.
- Coverage outlines the main policy options under debate—raising postage prices, cutting delivery days or closing post offices, or increasing federal support/borrowing authority—and emphasizes that cost‑cutting alone is unlikely to solve USPS’s structural financial problems.
📊 Relevant Data
In 2023, the USPS workforce consisted of approximately 21% African American, 8% Hispanic, 8% Asian American/Pacific Islander, and 0.67% American Indian or Alaska Native employees, with historically underrepresented racial groups making up 54% of the total workforce in 2025.
Workforce Diversity and Inclusiveness - About USPS Home — USPS
Between April 1, 2020, and July 1, 2025, net international migration accounted for 81% of U.S. population growth, adding 8.3 million people and increasing the number of delivery addresses USPS must serve, contributing to higher fixed costs.
Immigration to Become Sole Driver of US Population Growth — North Carolina Office of State Budget and Management
From 2016 to 2020, ZIP codes with a higher proportion of Hispanic residents had lower average USPS service performance scores, while those with a higher proportion of White residents had better scores, indicating disparities in mail service quality by demographic composition of areas.
Demographic Trends in Mail Access Changes and Service, 2016-2020 — USPS Office of Inspector General
Rural areas in the US, which rely heavily on mail-order prescriptions, are approximately 78% White non-Hispanic as of the 2020 Census, with about 3.7 million Medicare enrollees in limited pharmacy access areas depending on USPS deliveries.
How USPS network changes threaten prescription drug access for vulnerable populations — Brookings Institution
USPS has incurred net losses totaling approximately $109 billion from fiscal years 2007 through 2025, primarily due to a sharp decline in traditional letter mail volumes while maintaining fixed costs for delivering to roughly 170 million addresses nationwide.
The U.S. Postal Service is Losing Money. What Can Be Done to Help It? — U.S. Government Accountability Office
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- Amazon, described as USPS’s biggest customer, plans to cut the mail volume it sends through USPS by as much as two-thirds by September after talks over a long-term deal collapsed.
- Amazon claims USPS 'abruptly walked away at the eleventh hour' from more than a year of negotiations, derailing a potential long-term delivery agreement.
- The article explicitly ties the USPS cash warning to the risk for mail-order prescriptions, noting that about 6% of U.S. diabetes prescriptions are mailed and roughly 3.7 million Medicare enrollees live in areas with limited pharmacy access and high reliance on mail.
- A coalition of mailers, led by Keep US Posted, is quoted arguing that USPS is 'raising prices while reducing service' and warning that current strategies could push USPS toward a taxpayer bailout.
- The piece outlines debated policy options—raising prices, cutting delivery days or closing post offices, or increasing federal support/borrowing authority—and underscores that cost-cutting alone will not solve the structural problem.
- Steiner told the House Oversight Committee that USPS may need to raise the price of a first‑class stamp from 78 cents to between 90 and 95 cents to address its controllable losses.
- He warned that if USPS maintains the status quo, it could be unable to deliver the mail in less than a year due to running out of cash, sharpening his earlier 2027 insolvency warning.
- Steiner cited a $9 billion loss in 2025 and argued for lifting the long‑standing $15 billion borrowing cap and allowing USPS pension funds to invest in securities beyond Treasury bills.
- He compared the current 78‑cent U.S. stamp to roughly $3 in France and $2.50 in the U.K., arguing U.S. first‑class pricing is now the lowest in the industrialized world.
- Confirms the House hearing date and time: Steiner is scheduled to testify before Congress Tuesday, March 17, 2026, at 2 p.m. EDT about USPS finances.
- Reiterates Steiner’s March 4 Associated Press interview as the basis for his cash‑out warning, tying it directly to this public hearing.
- Restates Steiner’s argument that lifting the $15 billion borrowing cap is the 'easiest' immediate step Congress can take to buy time for broader fixes.