Urgent Reforms Needed as USPS Faces Billions in Losses Again

In a concerning development, the United States Postal Service (USPS) has disclosed a significant loss of $9.0 billion for the fiscal year 2025, contributing to a total of $25 billion lost over the past three years. This alarming situation has prompted the Coalition for a 21st Century Postal Service (C21), representing a wide array of stakeholders within the $1.9 trillion postal sector, to emphasize the necessity for immediate reforms.

The C21 coalition, which includes businesses ranging from small mailers to large shipping companies, employs nearly 8 million individuals across the nation. This diverse group is advocating for substantial change to avert potential insolvency by 2028. The urgency of the situation cannot be overstated, as the coalition believes that a collaborative effort between USPS and its business customers is essential for survival.

Newly appointed Postmaster General David Steiner has indicated his commitment to implementing reforms by the conclusion of the first quarter of the upcoming year. Members of C21 are encouraged by this initiative and express their willingness to collaborate closely with Steiner to explore viable solutions. They believe that the insights and experience of business customers, who account for roughly 90% of the USPS's revenue through postage charges, can significantly contribute to the necessary changes.

Art Sackler, Executive Director of C21, highlighted the importance of USPS engaging with the businesses that rely on its services, which include essential deliveries like medicines, financial documents, and everyday mail. Sackler pointed out that without transformative changes, including enhanced service quality and strategies to reduce costs, the USPS risks further financial losses and potential closure.

Sackler stated, “USPS must work with its customers — the people who send prescription medicines, household goods, newspapers and magazines, not to mention bills, statements, catalogs, greeting cards, and documents required by law.” He stressed that expecting to maintain viability solely by elevating prices while reducing services is a path to inevitable failure unless further government intervention is pursued.

The C21 coalition stands ready to offer the postal service their extensive knowledge and expertise to create a sustainable model for USPS. They argue that not only must USPS strive to improve service reliability, but it must also reverse the adverse effects that have caused businesses to rethink their reliance on the postal system. The coalition insists on a pragmatic approach to provide solutions that mutually benefit both the USPS and its business clientele.

In a broader context, if these fundamental improvements do not take place promptly, the vital institution of USPS, which has served Americans for over 250 years, may decline drastically, impacting not just businesses but communities across the country that depend on reliable mail service. The coalition urges legislators and stakeholders to acknowledge the critical role of USPS in supporting the economy and connectivity in society.

Together, members representing diverse sectors including newspapers, magazines, e-commerce, retailers, and service providers generate about $19 trillion in sales. They emphasize that a well-functioning postal service is paramount not just for processing mail but for ensuring that vital goods and communications reach their destinations efficiently, thereby sustaining millions of jobs nationwide.

In conclusion, the landscape for the USPS is increasingly precarious. As their financial losses mount, the immediate call to action from C21 and its members shouldn’t be overlooked. The fate of this essential institution hangs in the balance as it navigates the turbulent waters of financial strain and competing business models. The pathway to reform is now more crucial than ever, and the collaboration between USPS and its business partners will define its future.