Postmaster General David Steiner warned on August 7, 2026, that the United States Postal Service may close thousands of unprofitable post offices unless Congress approves a legislative reform package designed to address the agency’s severe financial crisis.
In prepared remarks delivered at a Board of Governors meeting, Steiner presented the post office closures as a potential consequence of two divergent policy paths. If Congress enacts the USPS’s proposed legislative package, the agency would avoid drastic service cuts and facility shutdowns. If Congress does not act, Steiner said, “our plans would certainly have to entail changes that will impact service like taking a look at our service levels and closing thousands of unprofitable post offices, as well as raising prices.”
The Postal Service’s financial condition has deteriorated significantly. According to the Government Accountability Office, USPS has lost approximately $109 billion in net losses from fiscal years 2007 through 2024. The agency warned in March 2026 that it could run out of cash within a year without intervention. In response, USPS suspended employer contributions to worker pension plans in April 2026, a move that freed up approximately $2.5 billion for operations, according to reporting by the New York Times.
Declining mail volume remains central to the crisis. Mail volumes have fallen significantly due to secular trends, with First-Class Mail experiencing particularly steep drops. Steiner noted in his remarks that even though mail volumes have declined, the USPS has managed to increase mail revenues through price increases in 14 of the past 16 quarters, demonstrating the agency’s reliance on raising stamp prices to offset volume losses.
The postmaster general framed the closure threat within a broader question about the Postal Service’s fundamental mission. He asked whether Congress’s goal is “to provide the current level of service to the American public regardless of the cost” or “to provide only the level of service that can be provided at a sustainable cost.” This distinction, Steiner argued, should drive policy decisions about whether to invest in the agency or require it to become self-sustaining through service reductions.
The Legislative Package Alternative
Steiner’s proposed legislative package includes a modest federal appropriation to invest in the Postal Service, increased borrowing authority to offset over $20 billion in historical underinvestment in assets and personnel, and reforms to benefit plans. The postmaster general emphasized that such an investment would benefit the broader economy—the “$2 trillion ecosystem surrounding the Postal Service”—and would not necessarily be permanent. He noted that as USPS reduces costs and improves revenue, the appropriation could be reduced over time.
In the current quarter, USPS reported financial improvements of $600 million compared to the same period the previous year, and the agency met its stated financial plan for both cost and revenue. Service performance also improved during this period, suggesting that operational changes are yielding results. Steiner credited improved network efficiency and better end-to-end visibility for these gains.
However, Steiner cautioned that Congressional actions have undermined these gains. A bill that passed a House committee proposing changes to postal ZIP codes would, according to USPS estimates, cost the agency over $800 million and eliminate the $600 million quarterly improvement. The Senate Committee passed a bipartisan alternative that would direct the Postal Service to reform its process for addressing community needs without the damaging financial and delivery impacts of legislated ZIP codes.
The choice between legislative reform and operational reductions remains stark. Steiner made clear that without Congressional action on his proposed package, the Postal Service would pursue whatever measures are necessary to achieve financial sustainability, potentially including the closure of thousands of unprofitable facilities. The decision, he emphasized, rests with Congress to define the Postal Service’s goals and determine whether to support the agency through appropriations or require it to become self-sustaining through service reductions.
Sources
- USPS Newsroom — Postmaster General Steiner’s prepared remarks at the August 7, 2026, Board of Governors meeting, including the warning about closing thousands of post offices and the proposed legislative package
- New York Times — Reporting on USPS suspending pension contributions and freeing up $2.5 billion in April 2026
- Government Accountability Office — Data on USPS net losses totaling approximately $109 billion from fiscal years 2007 through 2024
- Federal News Network — Coverage of USPS financial crisis and Steiner’s March 2026 warning to Congress about potential cash depletion
