USPS pauses pension payments to avoid cash exhaustion by 2027

First-Class Mail Forever stamps will increase from 78 cents to 82 cents. This price hike is part of a proposed 4.8% increase in mailing services product prices, which the U.S. Postal Service is implementing to preserve liquidity. The agency is also pausing employer contributions for the defined benefit portion of the Federal Employees Retirement System to save approximately $2.5 billion in the current fiscal year. These moves come as the U.S. Postal Service faces a severe financial crisis. Postmaster General David Steiner stated the agency will run out of cash in 2027 if no significant changes are made. The crisis is driven by a drastic reduction in mail volume, which has fallen from a peak of 213 billion pieces per year in 2006 to 109 billion pieces today. The agency is prohibited by federal law from borrowing more than $15 billion and reached that limit years ago.