USPS Reports $9.5B Loss Despite Controllable Loss Reduction
The United States Postal Service (USPS) has reported a significant reduction in controllable losses, down from $2.3 billion in fiscal 2023 to $1.8 billion in fiscal 2024. Despite this improvement, the postal service still ended fiscal 2024 with an overall loss of $9.5 billion. Postmaster General Louis DeJoy is seeking additional funding to stabilize and improve the USPS's financial health for fiscal year 2025.
DeJoy's plans to secure funding and improve the USPS's financial situation have faced bipartisan opposition and pushback from the Postal Regulatory Commission. One of his proposals includes slowing down delivery for some mail in 2025 to save $3.6 billion per year. However, the Postal Service has not been profitable in the overall ledger since fiscal 2021, when it made a profit in the controllable part. In fiscal 2022, it lost $500 million, and in fiscal 2024, the controllable loss was $1.8 billion.
The USPS attributes the bulk of its losses to retiree costs and inflation adjustments to workers' compensation payments. Mail volume also continued to slide, with a nearly 4% decrease in First-Class mail. The board has named Amber McReynolds as its next chair, and the Senate Homeland Security and Governmental Affairs Committee recently heard testimony from President Biden's nominees to fill vacancies on the board. The USPS projects an overall loss of $6.9 billion and a controllable loss of $1.1 billion in fiscal 2025.
The USPS's financial situation remains challenging, despite recent improvements in controllable losses. Postmaster General DeJoy's plans to secure additional funding and improve the USPS's financial health have been met with opposition, and the postal service continues to face losses due to retiree costs and decreasing mail volume. The appointment of new leadership and the ongoing review of the postal service's financial projections will be crucial in determining its future.
