USPS Faces Financial Challenges and Seeks Growth Strategies

Sat Nov 15 2025 01:43:17 GMT+0200 (Eastern European Standard Time)

Amid significant losses, the U.S. Postal Service is exploring new revenue avenues while emphasizing efficiency and modernization. Postmaster General David Steiner calls for local partnerships and legislative changes to ensure sustainability and growth.

The U.S. Postal Service (USPS) is grappling with financial instability, reporting a $9 billion net loss despite generating $80.5 billion in revenue. Postmaster General David Steiner advocates for enhancing revenue streams through partnerships for last-mile delivery and legislative reforms. The USPS aims to modernize operations while adhering to a long-standing commitment to serve every address. Concerns about privatization were addressed by Postal Board Chair Amber McReynolds, confirming no current plans to privatize the agency.

The U.S. Postal Service can’t fix its finances through cuts alone, Postmaster General David Steiner said Friday.

Steiner stated that the 150-year-old agency needs to expand its revenue base to restore its prominence in the nation’s delivery network. He emphasized the importance of capitalizing on its long-standing legal obligation to deliver to every address.

One way to achieve this, Steiner noted during the Postal Board of Governors meeting in Washington, is by increasing collaborations with more customers to handle final or 'last mile' deliveries to homes and businesses—the most expensive and labor-intensive segment of delivery.

“I’ve taken to saying that we cannot cost-cut our way to prosperity,” Steiner said. “We have to grow.”

The postal service, which has faced uncertainty since President Donald Trump’s presidency, is currently negotiating partnerships with private delivery companies like UPS to enhance its last-mile services. He mentioned that USPS aims to extend these programs to retailers large and small, offering same-day and next-day delivery options.

“We’ve begun discussions with a number of retailers, and the demand for fast, reliable, and affordable delivery is strong among all retailers,” he asserted. “Our value lies in our commitment to reach every address six to seven days a week while boasting a significant retail and processing footprint.”

While a recent financial report revealed an operating revenue of $80.5 billion, up by $916 million from last year, the USPS also reported net losses of $9 billion, an improvement from the previous fiscal year’s $9.5 billion loss.

McReynolds, re-elected as chair of the Postal Board of Governors, attributed some of these challenges to “long-standing and unnecessary restrictions” on USPS operations, highlighting the urgent need for executive and legislative action to ensure USPS's long-term financial viability. Being an independent and mostly self-supporting federal entity, USPS is required to contribute disproportionately to its retiree system, in addition to being limited in how it manages its retirement funds, which hampers potential revenue growth.

Both leaders stated the necessity of modernizing USPS operations. Steiner suggested integrating innovative methods, including artificial intelligence, into the postal logistics network.

“To accomplish all of this, we need capital and the ability to leverage our assets,” he noted. “We should be able to borrow like our competitors, who are not bound by statutory limitations.”

As Steiner progresses in his role, he aims to adhere to a 10-year modernization plan initiated by his predecessor, Louis DeJoy, which is valued at $40 billion. So far, improvements in mail delivery times have been noted, with most customers receiving mail and packages within an average of three days.

As the holiday season approaches, Steiner mentioned that USPS is ready for increased demand, having invested $20 billion in logistics enhancements over the past four years, with only a modest number of seasonal hires needed.

Steiner and McReynolds addressed public concerns surrounding the possible privatization of the postal service, a topic previously raised by Trump and others. McReynolds reassured that there are no current proposals or plans for privatization, reflecting the unified front of the USPS leadership.