USPS Seeks Revenue Growth Amid Financial Struggles

Sat Nov 15 2025 01:24:44 GMT+0200 (Eastern European Standard Time)

The U.S. Postal Service's Postmaster General emphasizes the need for expansion and modernization despite ongoing financial challenges and significant net losses.

Postmaster General David Steiner announced that the USPS cannot solely rely on cost reductions to fix its finances. With a net loss of $9 billion, he highlighted the need to expand revenue through last-mile delivery partnerships with retailers and private parcel services. Urgent calls for legislative changes to pricing and investing restrictions were made by Amber McReynolds, chair of the Postal Board of Governors. The USPS is expected to focus on modernization and prepare for the holiday rush, while concerns over potential privatization were addressed.

The U.S. Postal Service (USPS) is facing significant financial challenges, with Postmaster General David Steiner stating that cuts alone cannot resolve its financial issues. Instead, he emphasizes the importance of expanding the agency's revenue streams as a way to restore its status within the national delivery network.

During a recent Postal Board of Governors meeting, Steiner pointed to potential growth through last-mile delivery services that involve more partnerships with retailers and private parcel delivery companies. This service, crucial yet costly, represents the most labor-intensive phase of parcel delivery.

Steiner remarked, I’ve taken to saying that we cannot cost-cut our way to prosperity. We have to grow. Currently, USPS is negotiating agreements with major delivery services to enhance its last-mile operations, hoping to provide faster delivery solutions to both large and small businesses.

Despite a slight increase in operating revenue reported at $80.5 billion, the agency faced a net loss of $9 billion for the last fiscal year, an improvement over the previous loss of $9.5 billion. McReynolds, re-elected chair of the Postal Board, indicated that long-standing restrictions placed on USPS are impeding its financial recovery and called for immediate action to create a sustainable financial plan for the future.

Among the changes discussed, McReynolds pointed out that the post office is encumbered by disproportionate retiree system payments compared to other federal agencies and outdated investment regulations. She urged lawmakers to update pricing systems, workers' compensation programs, and borrowing limits that have remained unchanged since 1991.

More aggressive cost-cutting measures and the introduction of technological innovations, including artificial intelligence in logistic operations, are essential steps Steiner suggests to facilitate growth and efficiency. He insists that without better access to capital, USPS remains restricted.

Steiner affirmed his commitment to the $40 billion modernization effort launched by his predecessor, indicating that postal services have already seen improvements in on-time delivery rates. As the holiday season approaches, the postal service is poised after investing heavily in logistics improvement.

Addressing public concern over the potential privatization of USPS, McReynolds assured stakeholders there were no proposals to privatize the agency, reiterating that the board and Steiner share a commitment to maintaining public postal services.