How Much Debt Does The US Postal Service Have?

Is the US Post Office losing money?

The Postal Service lost $2.2 billion in its most recently reported quarter.

The volume of mail—letters, rather than parcels—has fallen faster than expected because of the pandemic.

Congress allocated $10 billion in funding for the USPS under the Cares Act to help offset the worst effects of the pandemic..

Who funds the USPS deficit?

The Postal Service receives no direct taxpayer funds. It relies on revenues from stamps and other service fees. Although COVID-19 has choked off the USPS revenue in recent months, factors that arose well before coronavirus have contributed to the unsustainability of the Postal Service’s financial situation for years.

Why did USPS lose money?

Here’s why the USPS is losing money. There are several key reasons that the USPS is hemorrhaging money. The first one that comes to mind is — you guessed it — the coronavirus pandemic. … As of May 2020, 5,000 USPS employees were reportedly subject to quarantine, and 60 had passed because of COVID-19.

Is the USPS in debt?

USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018. USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue.

Is the USPS in the Constitution?

O’Keefe says that the USPS is “enshrined in the Constitution.” It’s true that Article 1, Section 8 says: [The Congress shall have the power] to establish Post Offices and Post Roads. Thus, the Constitution allows the government to get involved in postal services, but that doesn’t mean that it has to.

When did USPS start losing money?

When Postal Service Losses Began Although the Postal Service lost money in the early part of the decade, in 2001 and 2003, the most significant losses came after the passage of a 2006 law requiring the agency to refund retiree health benefits.

Why is USPS in financial trouble?

“While short-term action by Congress is critical, the Postal Service’s financial situation has long been unsustainable due to a combination of declining mail volumes and an inflexible statutory and regulatory structure that limits our ability to reduce costs and increase revenue,” the Postal Service said.

Who runs the USPS?

The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states.

How much does the USPS lose every year?

The U.S. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. The results marked the 13th consecutive year the mailing agency lost money, although USPS did post a slight uptick in revenue to $71.3 billion.

Who owns the post office?

Secretary Of State For Business, Innovation And SkillsPost Office Ltd/Parent organizations

What happens if USPS is privatized?

Members of Congress often express concern when major companies do not pay taxes. Yet the USPS is a $70 billion company that does not pay taxes. A privatized USPS would pay federal, state, and local taxes, which would put the USPS on a level playing field with other businesses.