The U.S. Postal Service is staring down a cash crunch within a year — just as its biggest customer, Amazon, prepares to sharply scale back deliveries.
Why it matters: Even as major retailers build their own logistics networks, millions of Americans — especially in rural areas — still rely on USPS for essentials like prescription medications and last-mile delivery.
Driving the news: Postmaster General David Steiner warned lawmakers this week that USPS could run out of cash in less than 12 months without congressional action.
- "The mail will stop" if the agency can't meet its obligations, he said.
- That includes critical deliveries like "prescription drug packages."
At the same time, Amazon plans to cut the volume it sends through USPS by as much as two-thirds by September.
- Amazon said Wednesday that USPS "abruptly walked away at the eleventh hour" after more than a year of negotiations, derailing a potential long-term deal.
State of play: The financial warning from USPS is colliding with a growing fight over how the government-run, self-funded postal service should fix its finances.
- USPS is pushing to raise stamp prices to as high as 90-95 cents — up from 78 cents today
- Lawmakers say tradeoffs are inevitable, including potential service cuts or higher prices.
What they're saying: A coalition of mailers, led by Keep US Posted, argues USPS is "raising prices while reducing service" and penalizing its core mail business — warning the current strategy could push the agency toward a taxpayer bailout.
- Government watchdogs warn there are "no easy solutions," and that USPS likely can't fix its finances without congressional action.
Between the lines: The Postal Service's financial crisis isn't just cyclical — it's structural.
- USPS has lost money every year since 2007 as traditional mail volumes collapsed.
- It still must deliver to roughly 170 million addresses nationwide, regardless of cost.
Threat level: Mail delivery is a critical — and often overlooked — part of the U.S. health system.
- Delivery slowdowns can leave patients with chronic illnesses without needed medications, especially in rural areas.
- About 6% of diabetes prescriptions in the U.S. are delivered by mail, according to Brookings research.
- Roughly 3.7 million Medicare enrollees live in areas where pharmacy access is limited and reliance on mail delivery is high.
What we're watching: Lawmakers agree USPS can't fail — but are split on how to fix it. Options on the table:
- Raise prices
- Cut delivery days or close post offices
- Increase federal support or borrowing authority
Steiner's bottom line: If Americans want current service levels, "someone has to pay for it."
- Even USPS leadership acknowledges cost-cutting alone won't solve the problem — meaning higher prices, reduced service or public funding are likely unavoidable.
Yes, but: The cost-cutting options under discussion would hit hardest in the same places that depend most on USPS, including those who rely on mail-order medications.
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