In 2021, the US Postal Service introduced a 10-year strategy designed to improve its poor financial condition while fulfilling its statutory mandates. USPS has taken many actions to try to increase revenue and reduce expenses since this strategy was introduced, such as increasing prices and redesigning its transportation network and processing operations.
As part of its strategy, USPS also requested the federal government to take action. Congress partially fulfilled this request via the Postal Service Reform Act of 2022. This act canceled $57 billion of USPS’s missed payments, among other things. However, USPS’s financial condition remains poor.
In a study report issued on Dec. 16th titled “Action Needed to Fix Unsustainable Business Model,” the Government Accountability Office (GAO) recommends that the Postmaster General should develop publicly available financial projections of revenue and expenses. USPS disagreed with the recommendation. GAO also reiterates that Congress should fully address the level of postal service the nation requires, the extent to which USPS should be self-sustaining, and a sustainable financial path for retiree health benefits.

