USPS Pension Delays and Stamp Hikes to Forestall 2027 Cash Exhaustion

A First-Class Mail Forever stamp will cost 82 cents, up from 78 cents, pending regulator approval. This 4.8% increase is part of a cash preservation tactic to avoid a liquidity crisis. The U.S. Postal Service is also pausing employer contributions to the defined benefit portion of the Federal Employees Retirement System, saving $2.5 billion this fiscal year.

The agency receives no tax dollars for operations, funding itself through postage, products, and services. Mail volume has fallen from 213 billion pieces in 2006 to 109 billion today. This 104-billion-piece drop represents $81 billion in lost annual revenue at current stamp prices.

The USPS has reached its $15 billion statutory borrowing cap and cannot borrow more without congressional action. Postmaster General David Steiner warns that without intervention, the U.S. Postal Service will run out of cash by 2027.