“At our current rate, we’ll be out of cash in less than 12 months," Postmaster General David Steiner said
Credit: Getty
NEED TO KNOW
- Postmaster General David Steiner warned that USPS could run out of cash by October without congressional intervention
- USPS has faced financial losses since 2007, including $9 billion last fiscal year and $1.3 billion in early 2026
- Amazon claims USPS “abruptly walked away at the eleventh hour” during contract renewal negotiations in December 2025
The United States Postal Service (USPS) says they may run out of cash as early as October and may not be able to deliver mail by next year unless drastic measures are taken.
Postmaster General David Steiner delivered the warning during a hearing with the House Oversight Subcommittee on Government Operations on Tuesday, March 17, according to CNN and Reuters.
Steiner said the issues he warned of could only be avoided if Congress allows the agency to borrow more money, in addition to charging more for postage and other potential congressional reforms.
“At our current rate, we’ll be out of cash in less than 12 months. So in about a year from now, the postal service would be unable to deliver the mail,” Steiner, former board member at FedEx, told the subcommittee.
The Postal Service delivered 213 billion pieces of mail annually at its peak in 2006, according to Business Insider. But the agency has not turned a profit since then, having lost $9 billion during the last fiscal year and $9.5 billion the year prior.
The Postal Service announced in February that it had already lost nearly $1.3 billion in the first quarter of 2026.
Credit: WILL OLIVER/EPA/Shutterstock
According to NPR, the Postal Service has been operating with a financial shortfall almost every year since 2007. Steiner suggested the agency is currently being held back by certain regulations and requirements.
Steiner said the Postal Service could run out of money as soon as this fall should it continue paying some of its obligations, such as retirement funds, at current levels. That deadline, he added, could be extended to February 2027 should the agency default on some payments.
"I like to say that in the time since peak 2006 mail volume, the Postal Service was thrown overboard and instead of tossing us a life jacket, we were thrown an anchor," Steiner told the subcommittee, NPR reported.
Also on Tuesday, multiple reports surfaced suggesting Amazon plans to significantly reduce the number of packages it sends through USPS after the two entities failed to reach a new agreement, according to CNBC. Their current contract ends in September.
Amazon said in a blog post on Wednesday, March 18, that USPS “abruptly walked away at the eleventh hour” during contract renewal negotiations in December 2025. The company has partnered with the Postal Service for more than 30 years.
Credit: Getty
“Our goal was to increase our volumes with USPS, not reduce them,” Amazon said in the post, later noting that they “value this partnership deeply.”
Still, Amazon said it “remains committed to partnering with USPS” and hopes the partnership will continue, “even at a reduced level.”
Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories.
“We've repeatedly requested engagement with Postmaster General Steiner to work toward a solution,” the company said in their blog post. “We want to find a path forward, but that window is rapidly closing.”
Read the full article here