U.S. Economy and Public Services

The U.S. Postal Service has suspended its roughly $400 million‑per‑month contributions to the Federal Employees Retirement System for postal workers as it warns Congress it is heading toward a 'cash crisis' and could run out of money within 12 months. Spokesman David Walton and CFO Luke Grossmann say the move, which will free about $2.5 billion this fiscal year, is needed to preserve liquidity for operations even though it delays payments into the pension fund. USPS will continue forwarding employee contributions and employer matching into the Thrift Savings Plan, but Postmaster General David Steiner has told lawmakers that without structural changes—such as raising the first‑class stamp to about 95 cents or cutting delivery from six days to five—mail delivery itself could be at risk. The agency lost $9 billion in 2025 despite a 10‑year reform plan and has already announced an 8% temporary postage surcharge from April 26, 2026 through January 17, 2027 to offset soaring fuel costs linked to the Iran war. The situation is reviving long‑running debates in Washington and online over whether USPS is being set up to fail through mandates and underfunding, or mismanaged, and what a collapse or service cuts would mean for rural Americans, prescription deliveries, and mail voting.