The situation facing the U.S. Postal Service is a “five-alarm fire,” the Postal Regulatory Commission told a congressional panel Thursday, meaning redefined expectations more than money could fix the problem.
The Postal Service was designed to be self-funded, but has not reported annual profits for roughly the past decade, Commissioner Ann Fisher told the House Government Operations Subcommittee.
“Over just the last three years, cumulative net losses total about $25 billion, underscoring that the current trajectory is not self-correcting,” Ms. Fisher said.
The Postal Service lost $9 billion in fiscal 2025.
Since enacting the Delivering for America plan in 2021, which promised break-even operations by 2023 and a cumulative 10-year net income of $200 million, the Postal Service has incurred $31 billion in losses and is on a path to lose even more, said Commission Vice Chair Robert Taub.
The commission called on Congress to amend the Universal Service Obligation, the federal mandate requiring the Postal Service to provide prompt and affordable delivery service to all Americans, regardless of geographic location.
The commission estimated the annual cost of fulfilling the USO at $6.6 billion and growing.
Until the USO is clearly defined, each stakeholder — including the Postal Service itself — operates under different assumptions about what services must be provided, each carrying a different price tag.
Without a clear USO, the Postal Service has been permitted to redefine its own service standards downward. First-class mail service standards have been degraded twice in five years, while the service performance target has also been lowered.
“American people are paying more, while fewer mail pieces are being delivered in the expected time frame,” said another commissioner, Ashley Poling.
Mr. Taub pointed to the Federal Communications Commission as a potential blueprint to revamp the postal USO.
Under the 1996 Telecommunications Act, Congress directed the FCC to define the telecom USO by regulation under congressional guardrails without Congress itself having to legislate every specific detail.
Without fundamental structural change, the commission expressed doubt that additional borrowing alone — including Postmaster General David Steiner’s request to raise the borrowing cap from $15 billion to $30 billion — would solve the problem.
“Extend the date of the ultimate crisis, yes, but prevent it? No,” Mr. Taub said.
Subcommittee Chairman Pete Sessions, Texas Republican, said there is “no reason to assume additional borrowed funds infused into this unintended business model would be anything more than throwing good money after bad results.”
The Postal Service also carries about $101 billion in unfunded retirement benefits and spends about $10 billion a year trying to meet those obligations. In April, the commission waived requiring minimum retirement payments, freeing up $2.4 billion in the current fiscal year and potentially $15 billion or more through 2030.
In April, the Postal Service suspended employer contributions out of concern it would run out of cash. When asked whether Congress should consider amending federal law to let the Postal Service diversify retirement investments beyond Treasury securities, Mr. Taub said that doing so would be “reasonable.”
“The fact that you had to suspend the employer contributions is indicative of how dire the situation is,” said Rep. Gary Palmer, Alabama Republican.
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