USPS 'Out of Cash': Senator Paul Demands Overhaul Amid Looming Financial Crisis

The United States Postal Service (USPS) is teetering on the brink of a financial collapse, with Postmaster General David Steiner recently telling a Senate committee that the agency could run out of cash by September 2026 without urgent congressional help. This stark warning came during a June 24, 2026, hearing where Senator Rand Paul of Kentucky fiercely criticized the USPS finances as a 'broken business model,' highlighting over $117 billion in losses since 2007 and maxed-out borrowing from the Treasury. The crisis isn't new, but it's accelerating. Despite the 2022 Postal Service Reform Act aiming to stabilize finances by tackling retiree health benefit pre-funding, the USPS has lost another $26 billion since then, reporting its fifth consecutive quarterly loss of $1.95 billion in Q2 2026. Postmaster General Steiner, who took over in July 2025, has already taken drastic steps like temporarily pausing payments to the Federal Employees Retirement System (FERS) and raising stamp prices to 82 cents, effective July 12, 2026. He argues that statutory mandates like the Universal Service Obligation, requiring six-day delivery to every address, make it impossible to operate like a private business, with most routes and many post offices losing money. Senator Paul, however, pushes for deeper, business-like reforms beyond just more funding, suggesting measures like a widespread hiring freeze, greater use of private contractors, and even cutting delivery to four days a week, which he believes could save billions. The debate now pits Congress's willingness to provide additional support against calls for fundamental structural changes to save a vital American institution. The outcome will determine whether the nation's mail and package delivery network can avoid further service cuts or a potential taxpayer bailout.