Politics
Postmaster General Warns of Deep Post Office Cuts as USPS Posts $6.5B Loss
Postmaster General David Steiner told the Board of Governors that the Postal Service may slash post offices and marketing mail service without congressional action, after reporting a $6.5 billion net loss for fiscal 2026. Detailed reduction plans are expected in early 2027.
The U.S. Postal Service is warning that it may be forced to sharply reduce the number of post offices and scale back some mail services unless Congress intervenes to fix its finances, with detailed plans for the cuts expected early next year.
Postmaster General David Steiner delivered the warning Tuesday during a meeting of the agency's Board of Governors, saying the Postal Service has few remaining options to stabilize its books without lawmakers stepping in. The same day, the agency reported a net loss of $6.5 billion for fiscal 2026 â an improvement over the $9 billion loss it posted the previous year, but still a sign that its financial footing remains precarious.
"We will need to make drastic changes in the number of post offices and marketing mail service levels," Steiner said. "And we will need to look at other areas to generate the cash we need to meet our obligations to our employees and to the American public."
Steiner said the agency is also pursuing legislative changes aimed at establishing "a better and more durable business model for the Postal Service and for the benefit of the American public we serve." He said fully developed plans for the potential service reductions would be ready in the first quarter of 2027 and would be presented to government leaders as Congress weighs whether to act.
The warning lands with particular weight in rural and low-income communities, where post offices often serve as the only accessible federal presence and a lifeline for prescription deliveries, bill payments and mail-in voting. Marketing mail, meanwhile, is a key revenue stream for the agency and a critical channel for small businesses that rely on bulk advertising to reach customers.
The Postal Service has struggled for years with declining first-class mail volumes, rising operating costs and hefty obligations to its workforce and retirees. The agency has cut costs and shrunk its annual losses, but officials made clear Tuesday that those efforts alone will not close the gap.
Without congressional action, the decisions Steiner outlined could reshape the national mail network â closing or consolidating facilities and reducing service levels that many residents depend on. The coming months will determine whether lawmakers craft a legislative fix or whether the agency moves ahead with reductions on its own.