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USPS financial woes continue: What happens next?

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  • Staff Report 

The U.S. Postal Service (USPS), which has failed to cover its expenses and debt for over a decade, is struggling to implement its 10-year strategic plan aimed at reaching financial stability.

The U.S. Government Accountability Office (GAO) reported this week that the Postal Service’s expenses have outpaced its revenues, primarily due to a decline in profitable first-class mail and rising employee compensation costs. While the USPS argues it has made “significant progress,” the GAO emphasizes the importance of effective plan implementation.

Introduced in March 2021, the USPS’s strategic plan seeks financial balance by 2031, incorporating over 120 measures like shuttering select mail facilities and updating outdated delivery vehicles.

Additionally, mail delivery standards have been adjusted, extending the maximum delivery window for first-class mail from three to five days, contributing to enhanced on-time performance. However, amidst these changes, the USPS has been hiking rates, with the Forever Stamp’s price recently increasing to 66 cents. The organization reported a $2.5 billion loss in the last quarter, which USPS attributes to inflationary pressures and waning mail volumes. CEO Louis DeJoy remains optimistic about achieving the financial goals with appropriate adjustments.

Categories: New York StateNews