May 2026 Update
We may be starting to see the Postal Service changing course from the path taken by former Postmaster General Louis DeJoy to the direction envision by current Postmaster General David Steiner. While PMG DeJoy’s 10-year Delivering for America plan continues to be implemented, at least in mail processing facilities, PMG Steiner appears to be reassessing the role the Postal Service should play as an American institution. This can only be considered a result of the financial constraints currently faced by the USPS; and, that is impacting on our ability to secure our next contract.
The 10-year Delivering for America plan was announced in March of 2021 and stated the USPS “will operate with a positive net income beginning in Fiscal Year 2023 or Fiscal Year 2024.” But that has not happened. In fact, as we sit here in 2026, and the USPS has lost more than $30 billion since PMG DeJoy’s plan was announced. Recently the USPS announced a projected loss of $1.95 billion for the second quarter of 2026, which would make it the fifth consecutive quarterly loss following nineteen consecutive years in the red. PMG Steiner warned that the USPS could run out of cash by early 2027 and some are suggesting that this could come sooner.
On May 8th, PMG Steiner appeared before the USPS Board of Governors and advocated for the most substantial cuts in the history of the Postal Service. In his opening statement PMG Steiner called on Congress “to remove the mandates that ensure the Postal Service loses money: For example, days and levels of service, the ability to close unprofitable offices, and the underpricing of First-Class Mail. If we had flexibility on those three main issues, we could go a long way towards becoming profitable, but the American public would see reduced levels of service and higher rates.”
PMG Steiner was particularly critical of the Universal Service Obligation (USO) which requires the USPS to provide all Americans with delivery services at uniform prices. He stated, “Revenues and savings cannot offset the costs associated with the universal service obligation, our ‘USO,’ under the current business model. It is unsustainable.”
The USO is the public service component of America’s Postal Service and removing this obligation would convert the USPS into a for-profit company. The USPS estimates that seventy percent of local Postal facilities are losing money, and there is no scenario in which a for-profit entity would continue to operate unprofitable locations. Add to that, cuts to service levels and delivery frequency could leave vast areas of the country without affordable mail service. Of course, this would pave the way for private for-profit companies to step in and charge whatever rates the market would bear.
The circumstances seem to portend another battle over the future of the Postal Service on Capitol Hill. Not to mention a battle for the future of Postal employees. Your Union has risen to the occasion and fought these battles in the past and your voice will continue to be heard on these issues in the future.
Turning to our contract, the process of securing our next contract continues to move forward; albeit slowly. Now we see that the National Association of Letter Carriers has been unable to come to a negotiated agreement with the Postal Service. It seems significant, at least to me, that both our Union and the Letter Carriers are fighting to correct the same problems with starting wage rates and proportional COLA. Why is the Postal Service refusing to provide its employees with a fair starting wage and compensation comparable to the private sector as required by law? I guess they’d say they don’t have the money. The current circumstances are bothering me to no end.
OK – that last sentence is signaling to me that I’m about to launch into a tirade; so, I’ll stop here.
I hope everyone is enjoying the warmer weather that’s finally arrived.
JL