USPS Faces $2 Billion Quarterly Loss Amid Deepening Cash Crisis

United States Postal Service reported a $2 billion net loss for the quarter ending March 31, 2026. Revenue rose 2.3 percent to $20.2 billion, expenses fell 4.1 percent to $22.1 billion. First-Class Mail volume dropped 6.3 percent and total mail fell 3.4 percent to 25.6 billion pieces. Agency warned cash could be exhausted by February.

The Hill

USPS has posted annual deficits every year since 2007, accumulating $120 billion in net losses. First-Class Mail, its most profitable segment, has fallen to its lowest volume since the late 1960s, driving the financial strain.

The Hill

Postmaster General David Steiner leads the response. Partners include Amazon.com, routing at least 1 billion packages annually, and DHL. The Postal Regulatory Commission approved an 8 percent temporary surcharge on priority mail to offset rising transportation costs.

Reuters

Shows a $2 billion loss, $20.2 billion revenue and $22.1 billion expenses. First-Class Mail fell 6.3 percent; total mail declined 3.4 percent to 25.6 billion pieces. Suspending pension contributions will save $200 million biweekly, $2.5 billion by September 30. A stamp price rise to 82 cents takes effect July 12, and an 8 percent surcharge runs through January 17, 2027.

The Hill

Steiner described the situation as a cash crisis and said the agency is taking serious and appropriate steps to conserve funds. He urged Congress to raise the borrowing cap from $15 million to $34.5 billion and lift statutory constraints. He cited recent Amazon and DHL contracts as revenue upside.

Reuters

Former President Donald Trump called the Postal Service a “tremendous loser” while proposing a merger with his administration. Democratic lawmakers have opposed such a merger, citing concerns about agency independence and possible delivery disruptions in rural areas.

The Hill

Reuters said cash could be exhausted “as soon as February” without a year, while The Hill specified February 2027. No source gave a definitive timeline for congressional action on borrowing authority.

Reuters

• “We are in a cash crisis, and we are now taking serious and appropriate steps to conserve funds to operate,” — David Steiner, Postmaster General

Reuters

• “To avoid disruption and to sustain our role supporting American commerce and the public, we require urgent Congressional action to expand our borrowing authority and to address outdated constraints on the organization,” — David Steiner, Postmaster General

The Hill

• “During the quarter we were able to get revenue, cost and service results moving in the right direction,” — David Steiner, Postmaster General

The Hill

• “tremendous loser” — Donald Trump (as reported)

The Hill

USPS will implement the 82-cent First-Class stamp increase on July 12, 2026 and continue the 8 percent surcharge through 2027. Ongoing negotiations with Amazon and DHL aim to secure additional package volume. The agency’s warning of a cash shortfall has prompted calls for congressional deliberations on borrowing-authority reform.

Reuters