Postmaster General warns that Postal Service will run out of money by end of fiscal year without aid
Postmaster General Megan Brennan told the House Oversight and Reform Committee that the U.S. Postal Service would run out of money by the end of the fiscal year unless it received financial assistance from the federal government.
Brennan noted the Postal Service expects to lose $13 billion from the COVID-19 pandemic and an additional $54.3 billion in additional losses over the next decade.
There are more than 31,600 Post Offices around the country and more than 650,000 employees. The mailing industry generates almost $2 trillion a year.
During the meeting, Democratic House Oversight panel members also made the case for federal funding for the service.
“The Postal Service is holding on for dear life, and unless Congress and the White House provide meaningful relief in the next stimulus bill, the Postal Service could cease to exist,” Chairwoman Carolyn Maloney (D-N.Y.) said in a statement.
“Every day, the dedicated employees of the Postal Service are on the front lines of the COVID-19 pandemic to ensure all Americans receive their mail and packages, as well as critical medical supplies that are being shipped across the country,” committee member Brenda Lawrence (D-Mich.) said.
“During a Census and election year, it is imperative that we have a fully functional Postal Service to ensure Americans across the country can participate in our democracy,” she added.
In the meeting, Brennan requested that the Treasury give the Postal Service $25 billion in “unrestricted borrowing authority.”
Many industries and businesses have been hit hard by the pandemic, forcing them to seek aid and loans from the federal government. Congress and President Trump have already signed three stimulus packages in hopes of jumpstarting the economy.
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