USPS Warns of Post Office Closures After $6.5B Loss: What Happens Next
The Postal Service lost $6.5 billion in fiscal 2026 and warned Congress it will cut post offices and mail services without action. What changes, and when.
Image: Wikimedia Commons / Daniel Lu
WASHINGTON — The United States Postal Service warned on Tuesday it will be forced to cut post offices and mail services unless Congress acts, after reporting a $6.5 billion net loss for the year ended September 30, 2026.
Postmaster General David Steiner said the agency "will need to make drastic changes in the number of Post offices and marketing mail service levels". The loss narrowed from $9.0 billion a year earlier, but the agency said the improvement does not fix the underlying problem.
Key Takeaways
- The Postal Service lost $6.5 billion in fiscal 2026, down from $9.0 billion, on operating revenue of $82.9 billion.
- Steiner warned of "drastic changes" to post offices and mail service levels unless Congress passes a reform package.
- The agency cut 19 million work hours and suspended pension contributions, pushing its projected cash crunch from early 2027 to 2031-2034.
- No closure list has been published, and no 2027 stamp price has been announced.
How Many Post Offices Could Close and When
Steiner named no number of closures and listed no locations. The Postal Service has said it could close thousands of post offices and lower service standards after January 2027 if Congress does not pass a reform package in 2026. The cuts would fall on a network delivering to more than 170 million addresses six days a week, and would hit small and rural communities hardest.
What the $6.5 Billion USPS Loss Means for Stamp Prices and Mail Delivery
Most of the $2.5 billion improvement came from accounting, not operations. Workers' compensation expense fell $2.4 billion on an actuarial revaluation, and retirement expenses fell $277 million. Higher costs partly offset the gains: other operating expenses rose $894 million, retiree health benefits $726 million, compensation and benefits $456 million, and transportation $225 million.
| USPS fiscal year | 2026 | 2025 |
|---|---|---|
| Net loss | $6.5 billion | $9.0 billion |
| Operating revenue | $82.9 billion | $80.5 billion |
| Operating expenses | $89.4 billion | $89.8 billion |
| Controllable loss | $2.4 billion | $2.7 billion |
Controllable loss fell to $2.4 billion from $2.7 billion. Revenue rose $2.4 billion, or 3.0 percent, helped by the Forever stamp rising to 82 cents on July 12, 2026. No 2027 stamp price has been announced, but further increases are under review. Higher prices and slower service would add to cost pressures households already face, with consumer prices rising faster than expected in October and health insurance premiums set to jump 14 percent in 2027.
What Congress Must Do to Stop Postal Service Cuts
Steiner has asked Congress for a reform package offering either dedicated funding or freedom to change the service the agency must provide. The Postal Service can request up to $460 million a year from Congress for public services, a mechanism unused since 1982. It has also asked lawmakers to restructure retirement obligations costing roughly $10.3 billion a year, and its inspector general reported in October that it faces a $104 billion retirement funding shortfall.
The agency operates under a $15 billion federal borrowing cap set in 1990, and has been borrowing from its employees' retirement funds to keep operating. In March, Steiner told a House subcommittee it was less than a year from running out of money. Congress moved fast on funding when the Senate passed the bill that ended the record shutdown, and postal officials say the same urgency is now needed for reform.
Frequently Asked Questions
Will my local post office close in 2027?
No closure list has been published, and Steiner named no locations. The Postal Service has said it will consider closing thousands of post offices after January 2027 if Congress does not pass a reform package in 2026.
How much will stamp prices rise in 2027?
No 2027 stamp price has been announced. The Forever stamp rose from 78 cents to 82 cents on July 12, 2026, and further price increases are among the measures under review.
Is the Postal Service going bankrupt?
No. The Postal Service is self-funded and has no bankruptcy process. Suspending pension contributions delayed its projected cash crunch from early 2027 to between 2031 and 2034, but the agency says its model cannot sustain six-day delivery without reform.
Will mail delivery drop from six days to five days a week?
That is one option the agency has raised, and it would need Congress to change the delivery mandate. No decision has been announced.
If Congress does not pass a reform package in 2026, the Postal Service has said it will lower service standards after January 2027.
