{"id":181,"date":"2026-06-05T19:12:57","date_gmt":"2026-06-05T19:12:57","guid":{"rendered":"https:\/\/marketrelocationreport.com\/?p=181"},"modified":"2026-06-05T19:12:57","modified_gmt":"2026-06-05T19:12:57","slug":"usps-financial-crisis-wont-be-solved-until-congress-defines-its-service-mission-regulator-testifies","status":"publish","type":"post","link":"https:\/\/marketrelocationreport.com\/?p=181","title":{"rendered":"USPS financial crisis won\u2019t be solved until Congress defines its service mission, regulator testifies"},"content":{"rendered":"
\n

The U.S. Postal Service\u2019s regulator on Thursday argued that the agency\u2019s financial woes will not be resolved until Congress sets up a funding system for the USPS that supports its desired service requirements, echoing calls from the agency\u2019s leadership and other oversight entities.\u00a0<\/p>\n

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\u201cOnly by first specifically defining what America needs of its postal service and what that costs will Congress then truly know how best to fix the fundamental funding structure while preserving appropriate service and delivery standards,\u201d said Robert Taub, the vice chairman of the Postal Regulatory Commission, before the House Oversight and Government Reform Subcommittee on Government Operations.\u00a0<\/p>\n

Postmaster General David Steiner testified to the panel in March that USPS could run out of money as soon as this fall. Because the PRC in April authorized the agency to temporarily suspend certain employer contributions to the Federal Employees Retirement System, however, Taub said that the looming financial cliff has been pushed back by several years.\u00a0<\/p>\n

\u201cThis is not a panacea nor a permanent or long-term fix to the postal service’s problems, but it does allow Congress an opportunity to enact thoughtful and fundamental change as opposed to choices of desperation,\u201d he said.\u00a0<\/p>\n

At the time, USPS officials said the FERS suspension would not cause \u201cany immediate detrimental impact to current or future retirees,\u201d and the PRC noted that the agency had only been making partial payments in recent years.\u00a0<\/p>\n

In March, Steiner also told the Government Reform Subcommittee that changes were needed to USPS\u2019 self-sustaining business model and\/or its service expectations: \u201cIf you want the same number of delivery days and post offices, we can do that, but someone has to pay for it. If you want to have a discussion about reducing services, we can do that.\u201d\u00a0<\/p>\n

The Government Accountability Office also has long reported that USPS\u2019 current business model is unsustainable.\u00a0<\/p>\n

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Both Subcommittee Chairman Pete Sessions, R-Texas, and ranking member Kweisi Mfume, D-Md., agreed on Thursday that lawmakers need to reach agreement on what USPS service standards will be going forward in order to shore up the postal agency\u2019s finances.\u00a0<\/p>\n

\u201cIf we don’t do that, then we’ve just not done anything,\u201d Mfume said. \u201cI mean, we’ve just kicked the ball down the road.\u201d\u00a0<\/p>\n

In addition to structural reform, Steiner and the USPS Board of Governors have called on Congress to increase the postal agency\u2019s $15 billion statutory debt limit in response to the financial shortfalls. But Sessions expressed doubts about that proposal.\u00a0<\/p>\n

\u201cThere is no reason to assume additional borrowed funds infused into this unintended business model would be anything more than throwing good money at bad results,\u201d he said.\u00a0<\/p>\n

Also during the hearing, PRC commissioners and members of both parties criticized Delivering for America \u2014 an ongoing postal modernization plan started by former Postmaster General Louis DeJoy that he predicted would enable USPS to break even by fiscal 2023 generally by slowing some delivery and increasing the prices of certain products. But the agency experienced a net loss of $2 billion in the most recent quarter.<\/p>\n

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At a hearing Thursday, lawmakers also expressed doubt about a proposal from U.S. Postal Service leaders to raise the agency\u2019s statutory debt limit. <\/p>\n","protected":false},"author":1,"featured_media":180,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oversight"],"yoast_head":"\nUSPS financial crisis won\u2019t be solved until Congress defines its service mission, regulator testifies - Market Relocation Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/marketrelocationreport.com\/?p=181\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USPS financial crisis won\u2019t be solved until Congress defines its service mission, regulator testifies - 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