USPS warns of price hikes and 'urgent need' for changes after suffering another huge blow
Source: The Independent
Friday 14 November 2025 16:59 EST
The U.S. Postal Service is eyeing another overhaul after a $9 billion yearly loss. New Postmaster General David Steiner said USPS must be more efficient and that it still has a "significant systemic annual revenue and cost imbalance."
"To correct our financial imbalances, we must explore new revenue opportunities and public policy changes to improve our business model, he added.
USPS, which lost $9.5 billion in the prior year, has lost more than $100 billion since 2007 despite significant restructuring and legislative reforms. The U.S. Congress in 2022 provided the Postal Service with about $50 billion in financial relief over a decade.
USPS is seeking reforms, including changes to retiree pension benefit funding rules, diversification of pension assets, raising the statutory debt ceiling, and workers compensation administration reform.
Read more: https://www.the-independent.com/news/world/americas/usps-price-increase-mail-postal-service-b2865733.html
Grokenstein
(6,206 posts)For the most part, these harmful reforms have originated on the political right. To argue that the Postal Service needs to be privatized, conservatives need to show that it is dysfunctional, and theres no better way to do that than by weighing the agency down with impossible financial obligations. It continues a generation-long pattern of institutional vandalism by Republicans across government
BumRushDaShow
(163,320 posts)The "pre-fund" thing was repealed in 2022 under Biden (but the damage was already done) -
H.R.3076 - Postal Service Reform Act of 2022
Postal Service Reform Act of 2022
This bill addresses the finances and operations of the U.S. Postal Service (USPS).
The bill requires the Office of Personnel Management (OPM) to establish the Postal Service Health Benefits Program within the Federal Employees Health Benefits Program under which OPM may contract with carriers to offer health benefits plans for USPS employees and retirees.
The bill provides for coordinated enrollment of retirees under this program and Medicare.
The bill repeals the requirement that the USPS annually prepay future retirement health benefits.
Additionally, the USPS may establish a program to enter into agreements with an agency of any state government, local government, or tribal government, and with other government agencies, to provide certain nonpostal products and services that reasonably contribute to the costs of the USPS and meet other specified criteria.
The USPS must develop and maintain a publicly available dashboard to track service performance and must report regularly on its operations and financial condition.
The Postal Regulatory Commission must annually submit to the USPS a budget of its expenses. It must also conduct a study to identify the causes and effects of postal inefficiencies relating to flats (e.g., large envelopes).
The USPS Office of Inspector General shall perform oversight of the Postal Regulatory Commission.
TheRickles
(3,059 posts)So where is the current deficit coming from?
BumRushDaShow
(163,320 posts)I.e., people paying bills online and the proliferation of more and expanded package delivery services like that provided by Amazon (which has been killing UPS and Fedex too).
https://www.democraticunderground.com/10142884607
https://www.democraticunderground.com/10142899903
The biggest issue that is rarely mentioned is that USPS is the only carrier that provides service to every address (including rural) and other services still don't (which I suppose is part of the push for "drone delivery" ).
PATRICK
(12,323 posts)was channeled to fund Bush Jr's war. No mention of repayment but more stern budget hawking to let us know we just got off easy.
RazorbackExpat
(767 posts)July 1, 1971. To commemorate the event, they raised the first class letter rate from 6 cents to 8 cents, and dropped the word "postage" from postage stamps
oasis
(53,198 posts)no_hypocrisy
(53,771 posts)yet-to-be-born postal workers' pensions? (Shrub)
BumRushDaShow
(163,320 posts)Ponietz
(4,167 posts)Bengus81
(9,584 posts)Vinca
(53,025 posts)put a check in the mail for my husband last month. It took about 2 weeks to arrive in our post office box. (Different towns, different post offices.) I ordered a back support cushion from someone in the Midwest and tracked it on a tour of the eastern United States. It went through the postal hub near me twice. What a mess.
Bengus81
(9,584 posts)3Hotdogs
(14,810 posts)When they were first issued, by employer bought a couple'a thousand bucks worth. Really. They lasted a few years and saved, probably an average of 3 or 4 cents a stamp by the time he got through sending monthly invoices.
I don't know if it was a good investment for him, but the post office lost about 15 cents per stamp at the end of his last roll of stamps.
PATRICK
(12,323 posts)Did the speech repeater research the "restructuring costs"? Did they move beyond the instant eternal reflex to blame the recent contract for all costs? Did they ignore the absolute fact that the politically appointed officials have privatization and selling out on the front-burner? Did anyone ever figure out how mandatory reduction in service time and over consolidation have driven away business(without blaming the easy electronic alternatives)? They spend billions constantly building new consolidation centers which reduce jobs. OUR current labor force is orders of magnitude smaller than the past, which was semi-automated in modern times. Did they mention HOW they want to shrink the infrastructure into an investor attractive private package and cave to a "packages only" solution like some smaller countries?
It is a big picture. The "solutions" besides driving down wages and benefits seem to have a convenient goal of making goal of creating a stock bubble prize for some vultures. They have been consistently using media to sell the public on certain destructive ideas and leave people in the dark about postal realities so that they believe the myth that revenue comes from the Feds. Only stamps for revenue. Only looting from Congress. Only corrupted leadership from appointees. The real world transitions are filtered through this corruption.
Remember the Atlanta mega-center handling huge swaths of the South's mail with trucks backed up to the expressway parking areas for miles for weeks and messed up mail trucked far north to be inefficiently handled? More mega-centers, more focused on parcels. They expect a more efficient, consistent increase of an area-uneven delay of mail will avoid an Atlanta meltdown!
In short, the USPS gives the usual narrative, the parrot media repeats with concern trolling. Congressional committees respond with surprised outrage when the public cries out in bewildered pain.