The United States Postal Service (USPS) is grappling with significant financial challenges, reporting a net loss of $9.5 billion for the fiscal year ending September 30, 2024. This loss is $3 billion larger than the previous year's deficit, highlighting the ongoing struggles of the postal service [39e89c16]. Despite a slight increase in total operating revenue to $79.5 billion, which represents a 1.7% growth, USPS warns that continued cost-cutting measures are essential to avoid a potential government bailout or organizational collapse [39e89c16].
In response to its financial woes, USPS has implemented aggressive price hikes, with first-class mail stamps increasing from 68 cents to 73 cents starting July 14, 2024. This price adjustment is part of USPS's ten-year 'Delivering for America' plan, which aims to transform the postal service into a self-sustaining entity. The plan is projected to generate $44 billion in additional revenue by 2031 [59412360] [ca177ab7] [1865cb62].
The postal service has lost over $100 billion since 2007, prompting the need for a comprehensive financial overhaul. USPS is facing projected losses of $160 billion over the next decade, necessitating a restructuring plan that includes price adjustments and operational changes [1865cb62]. First-class mail volume has been declining, with a 6.1% drop in the 12 months ending September 30, 2023, resulting in the lowest mail volume since 1968 [1865cb62].
President Joe Biden's administration has provided approximately $50 billion in financial relief to USPS over the next decade, aimed at ensuring its long-term survival. However, the urgency of the current financial situation has led Postmaster General Louis DeJoy to agree not to further consolidate the Postal Service's processing network until at least January, as part of efforts to stabilize operations [1865cb62]. The USPS's ability to navigate these financial challenges will be crucial in determining its future viability and independence from government intervention [39e89c16].