USPS Financial Crisis: Stamp Prices May Rise to Avoid 2027 Bankruptcy

The U.S. Postal Service (USPS) is facing a severe financial crisis that could lead to the agency running out of cash by early 2027. Postmaster General David Steiner has informed Congress that significant reforms and increased borrowing capacity are necessary to prevent the collapse of the service.

During testimony before a House Oversight subcommittee on March 17, 2026, Steiner warned that the agency is on pace to exhaust its available funds in less than a year without intervention. He stated that the failure to secure more borrowing capacity could lead to the end of the Postal Service as we know it now.

Proposed Price Hikes and Cost-Cutting Measures

To address mounting losses, the USPS is considering several options to increase revenue and reduce expenditures. One primary proposal is to raise the price of first-class mail stamps, which currently cost 78 cents.

Steiner suggested that stamp prices could rise to between 90 and 95 cents, or potentially reach $1 or more. He told lawmakers that raising prices to as much as 95 cents would largely solve our controllable loss.

Beyond pricing adjustments, Steiner presented other potential cost-cutting measures to Congress, including:

• Ending six-day-a-week mail deliveries.
• Closing post office locations.
• Implementing changes to pension funding and liabilities calculations.
• Adjusting workers’ compensation and retirement fund investment strategies.

Debt Limits and Financial Runway

A critical component of the crisis is the agency’s statutory debt limit. The USPS has reached its current borrowing cap of $15 billion, a limit that was established in 1990. This cap prevents the agency from taking out additional loans to cover its operational deficits.

Steiner indicated that without congressional action to lift this debt limit, the USPS could struggle to pay its employees or vendors by February 2027.

The financial instability is a long-term trend. According to the U.S. Government Accountability Office, the USPS has posted losses in nearly every year since 2007, with total losses amounting to approximately $109 billion through fiscal year 2024.

Declining Mail Volume and Structural Challenges

The agency’s financial struggles are largely attributed to the shift toward digital communication. According to the Postal Regulatory Commission, the USPS delivered 112 billion pieces of mail in fiscal 2024, which represents a decline of nearly 50% from its peak in 2006.

While stamp prices have risen 46% since early 2019—when they were 50 cents—Steiner argues that these prices remain significantly lower than postage costs in other countries.

The current crisis has prompted calls for a broader revamp of the organization. President Donald Trump has expressed a desire for a post office that works well and doesn’t lose massive amounts of money, and has previously considered moving the USPS from its status as an independent agency to be under the direct control of the Commerce Department.

The USPS had previously held off on a stamp price increase in January 2026, but Steiner has signaled that further hikes in mid-2026 and 2027 remain on the table, depending on whether Congress grants the agency broader pricing authority.