USPS Faces Financial Challenges, Calls for Expansion and Modernization

Sat Nov 15 2025 00:57:47 GMT+0200 (Eastern European Standard Time)

Postmaster General David Steiner emphasizes the need for innovative revenue strategies and modernization plans to stabilize USPS finances amid ongoing losses.

At a recent Postal Board of Governors meeting, Postmaster General David Steiner highlighted the U.S. Postal Service's financial challenges, stating that cost-cutting alone won't restore profitability. He proposed expanding revenue streams through enhanced last-mile delivery partnerships with retailers and emphasized the importance of modernization in USPS operations. Despite a reported operating revenue increase, the postal service is still facing significant net losses, necessitating urgent legislative reforms.

The U.S. Postal Service can't fix its finances through cuts alone, Postmaster General David Steiner stated during an event in Washington on Friday.

Steiner asserted that the 150-year-old agency needs to diversify its revenue sources to regain its standing within the national delivery network. He emphasized the postal service's essential legal obligation to provide delivery to every address across the United States.

One of his proposals includes collaboration with businesses for final mile delivery, a potentially lucrative venture that is typically the most costly in the delivery process. We cannot cut costs our way to prosperity; we have to grow, he said.

Additionally, he revealed ongoing negotiations with private companies like UPS to enhance last-mile delivery capabilities and indicated intentions to cater to both large and small retailers with options for rapid delivery services.

A recent financial report showed USPS had an operating revenue of $80.5 billion, reflecting an increase of $916 million compared to the previous fiscal year, yet the agency incurred net losses of $9 billion, slightly better than the previous year's deficit of $9.5 billion. This data highlights persistent financial struggles.

Amber McReynolds, re-elected as chair of the Postal Board of Governors, pointed to outdated regulations hindering USPS's financial sustainability. She referenced excessive payments into the retiree system and called for necessary adjustments to the processing of funds and pricing systems that haven't changed since 1991.

On the modernization front, Steiner emphasized commitment to a previously initiated $40 billion, 10-year plan designed to stabilize finances and improve operations, affirming steady progress including enhanced mail delivery times.

As the holiday season approaches, he mentioned that the postal service has invested significantly in logistics improvements and staffing, ensuring operational readiness. He also reassured the public about ongoing discussions regarding the privatization of USPS, which have raised concerns among citizens.