The USPS is in financial trouble again.
The USPS has been financially unsound for years. Has it ever been financially solvent?
It turns out that the USPS is in a liquidity crisis. They don’t have enough money to pay their bills.
America’s postal service is temporarily halting payments to its employees’ pensions to free up cash, citing fast-approaching financial troubles.
The payment suspension to the Federal Employees Retirement System pension plan is set to take effect on Friday, the US Postal Service said in a document with frequently asked questions and answers. The FAQ attributed the pause in pension payments to “a pending liquidity crisis in which the postal service could run out of cash as early as February 2027.”
USPS chief financial officer Luke Grossmann said that the suspension would not cause “any immediate detrimental impact” to current employees or retirees.
“The risk to the Postal Service and the American public from insufficient liquidity for postal operations dramatically outweighs any longer-term risk to the pension funds from not making the currently due payments,” Grossmann said in a statement.
The pause is the latest sign of trouble for USPS. Last fiscal year, the postal service lost $9 billion. More recently, it reached a deal with Amazon that will reduce the number of deliveries it ships from the e-commerce giant by 20%, Reuters reported on Monday.