USPS Delays Retirement Payments to Push Cash Crisis to 2031-2035

3 articles · Updated · Federal News Network · Jun 24

USPS told lawmakers its projected cash crunch has moved from early 2027 to sometime between fiscal 2031 and 2035 after it suspended employer payments to the Federal Employees Retirement System.
David Steiner said the agency is still effectively out of cash, calling the move borrowing from retirement plans to fund operations rather than a durable fix.
A $2 billion net loss in fiscal 2026's second quarter followed a $9.5 billion loss in fiscal 2025, prompting USPS last month to curb nonessential spending on hiring, travel and training.
Congress showed little appetite for more aid after a 2022 law saved USPS $107 billion, pressing Steiner instead for detailed cost cuts and five-year projections by Friday.
Without congressional help, Steiner said profitability would likely require labor-cost cuts, reduced service days and closures of a massive number of post offices while consultants review restructuring options.