After years of Washington-style mismanagement, the USPS is now warning it may need a near-$1 stamp just to keep delivering your mail.
Quick Take
- USPS Postmaster General David Steiner told Congress the agency wants to raise first-class stamp prices to 90–95 cents, up from 78 cents.
- Steiner said USPS lost $9 billion in 2025 and could run out of cash within 12 months if the “status quo” continues.
- The agency argues higher prices could “largely solve” what Steiner called its “controllable loss,” but it is also seeking structural reforms.
- USPS is also pushing to raise its $15 billion borrowing limit and change pension investment rules to seek higher returns.
Congress Hears a Blunt Warning: USPS Could Be Out of Cash in a Year
Postmaster General David Steiner told the House Oversight Committee on Tuesday, March 17, 2026, that the Postal Service is facing a financial crunch and wants to increase first-class stamp prices to between 90 cents and 95 cents. That would be a sharp jump from today’s 78-cent stamp.
Steiner also warned lawmakers that USPS is at risk of running out of cash in 12 months, framing the situation as a make-or-break moment.
USPS considers increasing first-class stamps to 95 cents as cash is set to runout by 2027 https://t.co/r5zQ6LueTG pic.twitter.com/4ddmK3BHLv
— Postaltimes.com (@postaltimes) March 17, 2026
Steiner’s testimony put a spotlight on a core frustration many Americans already feel: essential services keep getting more expensive while government-run systems still can’t stabilize their finances.
Steiner argued that any company has limited levers to improve performance—sell more, raise prices, or cut costs—and he emphasized that pricing is now central to USPS’s plan. He said a 95-cent stamp “would largely solve our controllable loss,” signaling the agency believes customers will be asked to cover a big share.
Losses Keep Mounting Despite the 10-Year Plan
The Postal Service’s financial slide has been years in the making, driven by high costs and dwindling mail volume. Steiner told Congress USPS posted a $9 billion loss in 2025, despite operating under a 10-year plan that was designed to reduce expenses and restore profitability.
That plan began in 2021 under former Postmaster General Louis DeJoy and included multiple stamp price hikes plus operational changes meant to streamline delivery and transportation across regions.
One notable shift under the prior plan was changing service expectations—USPS no longer guaranteed that mail would receive a postmark the same day it was mailed, part of an overhaul of its regional transportation system.
Even with those changes, losses continued, which is why Steiner is now signaling more moves are coming. His message to lawmakers was straightforward: without additional changes, the public could face a scenario where USPS simply can’t sustain normal operations.
Why USPS Says U.S. Stamps Are “Cheap” Compared to Europe
Steiner tried to justify the proposed price range by pointing to international comparisons. He said the current 78-cent stamp is the lowest “in the industrialized world,” and contrasted it with prices he cited for France (about $3) and the United Kingdom (about $2.50) for similar service.
He also emphasized geography, arguing that Europe’s shorter distances make delivery less complex than the U.S. network spanning from Puerto Rico to Alaska.
Borrowing Limit and Pension Rules: The Other Levers USPS Wants
Stamp prices are only part of the package. Steiner told lawmakers USPS also wants Congress to raise its borrowing limit above the current $15 billion cap, a limit he said has been in place since the 1990s.
Expanding borrowing authority may provide short-term breathing room, but it also raises a familiar question for taxpayers: whether reform is happening fast enough to prevent yet another cycle of bigger liabilities and bigger demands from a federal institution.
Steiner also called for pension reforms that would allow the agency to invest in securities beyond Treasury bills, which he argued could increase investment returns.
That request highlights the broader dilemma: USPS is trying to avoid a collapse in service while also navigating the constraints—and protections—built into a government-adjacent institution. What remains unclear from the hearing alone is which cost cuts or operational changes would accompany higher prices, and how quickly Congress will act.
