The United States Postal Service has hired restructuring advisers to review its finances as leaders warn the agency could run out of money by 2027 if major changes are not made.
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The move comes as the Postal Service continues to struggle with falling mail volumes and rising costs across its nationwide delivery network. Officials say outside advisers will help evaluate financial options and long-term strategies for stabilizing the organization.
Postmaster General David P. Steiner said the agency’s financial situation remains serious.
“We are out of cash in 12 months if we don’t do anything different,” he said.
The Postal Service has been dealing with financial challenges for years. Traditional first-class mail, once the backbone of the organization’s business model, has steadily declined as more communication moves online. Over the past 15 years, billions of pieces of mail have disappeared from the system.
At the same time, the Postal Service still must deliver to every address in the country. That universal delivery requirement means trucks, sorting facilities, and carriers must serve more than 170 million addresses across cities and suburbs.
Packages have helped offset some of the losses from declining mail, especially with the rise of e-commerce. The Postal Service now handles a large volume of residential deliveries and often works with other carriers to complete the final leg of shipments.
Still, the agency has reported large financial losses in recent years. Postal officials say long-term structural changes are needed if the system is going to remain financially stable.
The Postal Service has been working through a multi-year strategy called the Delivering for America plan, which aims to modernize operations, improve efficiency, and strengthen the agency’s finances.
Some of the changes include consolidating parts of the mail processing network, adjusting delivery routes, and investing in new equipment and vehicles.
Postal leaders have also said they need help from lawmakers and regulators to stabilize the system. One major issue is the agency’s current borrowing limit, which caps how much money the Postal Service can access if cash runs short.
Industry observers say the situation is important for the broader logistics sector because the Postal Service plays a major role in the country’s last-mile delivery network.
Many retailers rely on the Postal Service to help deliver packages to homes across the United States, especially in rural areas where private carriers often charge higher rates.
