The U.S. Postal Service (USPS) has avoided an immediate financial collapse, but new projections show that the agency could still run out of cash within the next decade. Higher stamp prices, reduced delivery schedules, and post office closures remain among the possible responses.
USPS Buys Time as Financial Pressure Continues
According to The US Sun, the Postal Service no longer expects to exhaust its available cash in 2027 after adopting emergency measures to sustain operations. Those steps have delayed a potential shutdown without resolving the financial problems facing the agency.
The warning affects a service used by roughly 350 million Americans, with USPS delivering mail to nearly 170 million residential addresses, businesses, and Post Office Boxes nationwide.
Postmaster General David Steiner has repeatedly called for legislative intervention to address the agency’s long-term finances.
“The problem is simple. The Postal Service has a broken business model and action is needed by Congress to fix it,” Steiner warned in financial projections published on June 24.
Earlier in 2026, Steiner told lawmakers that the Postal Service could face the prospect of suspending deliveries as early as 2027 if its financial position deteriorated further.
The agency has since suspended certain employer contributions to employee retirement funds and gained access to previously restricted cash. These measures have provided temporary financial relief.
“The bottom line is that we are out of cash. We are borrowing from our employees’ retirement funds to continue operations,” Steiner said.
A Sharp Decline in Mail Volume Threatens USPS Finances
The Postal Service’s financial difficulties reflect a long-running decline in traditional mail.
In 2006, USPS handled approximately 213 billion pieces of mail annually. That figure has fallen to around 109 billion, reducing revenue opportunities while the agency continues to maintain an extensive nationwide delivery network.
Fewer letters mean less mail moving through a system that must still reach communities across the country, including rural areas where delivery routes can be costly to operate.
The latest financial forecasts suggest that the recent emergency measures may only postpone another cash shortage.
Under the agency’s base-case projection, available cash could reach approximately $17.5 billion in fiscal 2031 before declining and falling below zero by fiscal 2035.
A less favorable financial scenario places that deadline considerably earlier, with USPS potentially exhausting its cash in fiscal 2032.
These projections describe potential outcomes rather than confirmed dates for a service interruption.
Higher Stamp Prices and Fewer Delivery Days Are Under Consideration
To prevent another financial emergency, Steiner has outlined several options that could change how Americans send and receive mail.
One proposal involves reducing the current six-day delivery schedule, potentially lowering operating expenses by limiting the number of days carriers serve delivery routes.
Another possibility is closing selected post offices as part of efforts to reduce costs.
Customers could also face higher mailing expenses. Among the options discussed is increasing the price of a First-Class Mail stamp to 90 cents or more.
Such changes could affect households, small businesses, and other customers that depend on regular postal services.
Congress could pursue a different approach by reimbursing USPS for some of the expenses associated with its public-service obligations.
For now, reduced delivery schedules, potential post office closures, and the proposed stamp increase have not been confirmed. USPS continues to operate under its existing service arrangements while seeking a longer-term financial solution.
