USPS Struggles with Financial Stability, Seeks Revenue Expansion

Sun Nov 16 2025 05:22:21 GMT+0200 (Eastern European Standard Time)

Postmaster General David Steiner outlines new strategies for the U.S. Postal Service to improve its financial situation through revenue growth and partnerships, while addressing ongoing financial losses and operational challenges.

In a recent address, Postmaster General David Steiner emphasized that the U.S. Postal Service (USPS) cannot rely solely on cost-cutting to resolve its financial issues. Instead, he insists on the need to expand revenue streams, particularly through partnerships with businesses for last-mile delivery services. Amid increasing financial losses totaling $9 billion, Steiner highlighted the importance of modernization and efficiency improvements. McReynolds, chair of the Postal Board of Governors, echoed the call for legislative changes to relieve USPS financial constraints. As the agency prepares for the holiday season, it aims to stay on the course of its comprehensive modernization plan while ensuring no plans for privatization are in place.

The U.S. Postal Service (USPS) is facing significant financial challenges that cannot be resolved through cost-cutting measures alone, emphasized Postmaster General David Steiner during a meeting on Friday in Washington.

Steiner underscored the necessity for the agency, which has served the nation for over 150 years, to broaden its revenue streams to restore its role as a crucial part of the country's delivery network. He suggested that collaborating with more clients for last-mile delivery services—considered the most expensive and labor-intensive segment of delivery—could be a key approach.

I’ve taken to saying that we cannot cost-cut our way to prosperity, he stated. We have to grow.\

Despite a slight uptick in operational revenue, reaching $80.5 billion—an increase of $916 million—the USPS reported a net loss of $9 billion, although this reflects an improvement compared to the previous year's $9.5 billion deficit. Steiner highlighted ongoing negotiations with delivery giants like UPS to enhance last-mile services and proposed opening these efforts to both large and small retailers for same-day and next-day delivery options.

Amber McReynolds, re-elected chair of the Postal Board of Governors, pointed to longstanding constraints as factors burdening USPS finances and stressed the urgent need for legislative action to ensure long-term sustainability.

McReynolds noted that the USPS is required to contribute disproportionately to its retiree system compared to other federal agencies and mentioned the limitations imposed on investment strategies for pension funds, which restrict promising investment avenues. She called for a review and adjustment of USPS pricing systems, workers' compensation programs, and borrowing limits.

As the postal system continues to navigate these challenges, Steiner signaled readiness for modernization, revealing that $20 billion has been allocated to enhance processing and logistics over the past four years. With heightened demand approaching the holiday season, Steiner affirmed that only about 14,000 seasonal employees may be needed this year, thanks to a stabilized workforce.

Concerns about the potential privatization of the postal service were addressed, with both McReynolds and Steiner asserting that there are no current proposals for privatization.