The United States Postal Service (USPS) is facing a financial crisis as it marks its 251st anniversary. The agency, which delivers mail to over 170 million addresses, has seen its mail volume halve since its peak in 2006. This decline has led to a significant drop in revenue, with the USPS spending more than it has earned every year since 2006.

Declining Mail Volume

The decline in mail volume is largely due to the rise of digital communication, such as emails, texting, and phone calls. This has resulted in a more than 57% drop in first-class mail volume over the past two decades. While the USPS has seen an increase in package delivery, it faces strong competition from companies like UPS, FedEx, and Amazon.

The USPS has a universal service obligation to deliver to all addresses six days a week, which has become increasingly difficult to fulfill due to the decline in revenue. The agency has called for congressional action to repair its broken business model and ensure its long-term financial sustainability.

Financial Uncertainty

The USPS has been borrowing from its employee retirement funds to stay afloat, but this is not a sustainable solution. The agency has estimated that it will run out of cash between 2031 and 2035 if it does not receive congressional support. The USPS employs over half a million workers and provides key infrastructure, particularly for rural areas and vulnerable populations.

Experts say that there are several paths forward for the USPS, including congressional funding or cuts to service. However, advocates for the USPS agree that its bedrock should be the universal service obligation, which ensures that all Americans have access to mail delivery six days a week.

Original reporting: KOAT Albuquerque — read the source article.