USPS Warns Congress of Cash Shortage, Potential 2027 Mail Halt
The United States Postal Service is warning Congress it could run out of money by October and cease mail delivery by 2027 without intervention. Postmaster General David Steiner issued the dire forecast to the House Oversight Subcommittee on Government Operations this week, revealing the agency has already lost $1.3 billion in early 2026. The USPS, which last posted a profit in 2007, is seeking legislative action to increase borrowing authority and enact reforms to avert a complete operational shutdown.
Key Takeaways:
- USPS projects cash depletion by October 2026, risking a total halt to mail delivery by February 2027.
- The agency reports a $1.3 billion net loss so far in 2026, following a $9 billion loss last fiscal year.
- A critical shipping contract with Amazon is in jeopardy, threatening a major revenue stream.
- New price hikes for Priority Mail, Ground Advantage, and other services took effect in January 2026.
A Two-Decade Financial Decline
The Postal Service’s financial troubles are long-standing. Annual mail volume has plummeted since its 2006 peak of 213 billion pieces. Steiner told lawmakers the agency has been "thrown an anchor" instead of a life preserver in the years since. Ongoing obligations, such as retirement benefit payments, could accelerate the cash crisis, potentially moving the insolvency date forward to this fall.
Amazon Partnership Nears Collapse
Compounding the crisis, a key partnership with Amazon is fraying. The retail giant stated that USPS "abruptly walked away" from contract renewal talks in December 2025. While Amazon claims its goal was to increase shipping volume through the Postal Service, the current deal expires in September with no replacement agreement in place. The loss of Amazon’s business would represent a significant blow to USPS revenue.
Price Hikes and a Plea to Congress
In response to the financial emergency, USPS has already implemented new shipping rate increases as part of a 10-year restructuring plan. Steiner is urgently requesting that Congress grant the agency authority to borrow more funds while also supporting further postage increases and regulatory changes. Without congressional action, officials state the nation’s mail delivery system faces an imminent collapse.
Sources
https://nypost.com/2026/03/20/lifestyle/usps-cash-crisis-could-halt-mail-delivery-by-2027/
