The U.S. Postal Service announced Friday that it had racked up a $3.1 billion quarterly loss and that if current trends continue it is likely to default on its payments to the federal government.
According to current revenue estimates, the postal service will be unable to make a $5.5 billion payment to its retirement fund that is due in September. Unless Congress takes action, such as waiving the payment, the postal service says that it will have no choice but to default on its payments.
The USPS announced earlier this year that it will identify nearly 3,700 underutilized post offices for closure and that it will shift its services to local retailers who can serve as branch locations without the expense of having to operate a full postal service, a program that is aimed at maintaining access to the post office in rural areas while at the same time cutting spending. The post office is also considering reducing delivery to 5 from 6 days a week, or perhaps even fewer delivery day.Continue reading →