Postmaster General David Steiner appeared before the Senate Homeland Security and Governmental Affairs Committee on Wednesday morning, delivering a stark warning about the United States Postal Service's financial trajectory. Steiner told lawmakers that without significant legislative intervention, the agency will run out of money by 2027.
The testimony came as the USPS continues to grapple with long-standing financial woes that predate Steiner's tenure. While the agency has seen some revenue upticks in recent months, the underlying fiscal picture remains dire. In the second quarter of 2026, the Postal Service reported a net loss of $2 billion. That followed a staggering $9 billion loss reported last November.
Steiner's appearance on Capitol Hill underscores the deepening crisis at the USPS, which has struggled to adapt to declining first-class mail volumes and rising operational costs. The postmaster general has repeatedly called for structural reforms, including changes to the agency's mandated prefunding of retiree health benefits—a requirement unique to the USPS among federal entities.
The hearing, which began at 9:30 a.m. EDT, gave senators a platform to press Steiner on the specifics of his reform proposals. Lawmakers from both parties have expressed concern about the agency's solvency, though disagreements persist over how to address the problem. Some Republicans have pushed for greater privatization or cost-cutting measures, while Democrats have emphasized preserving universal service and protecting rural delivery.
Steiner's warning comes amid a broader political landscape where the USPS has become a flashpoint. Earlier this year, the postmaster general drew controversy by announcing plans to block mail ballots in states that refuse to provide voter data, a move that critics argued could suppress turnout. That decision remains tied up in litigation.
The financial challenges facing the USPS are not new. The agency has lost money for more than a decade, with total losses exceeding $90 billion since 2007. Steiner has argued that the current trajectory is unsustainable, and his testimony Wednesday was intended to pressure Congress to act before the 2027 deadline.
Senators on the committee questioned Steiner about the agency's operational efficiency, its ability to compete with private carriers like UPS and FedEx, and the impact of recent rate increases. Steiner defended the USPS's pricing strategy, noting that the agency has sought to balance affordability with the need to generate revenue.
Outside the hearing, postal worker unions and consumer advocacy groups have urged lawmakers to provide additional funding and flexibility rather than imposing austerity measures. The USPS has also faced scrutiny over its handling of election mail and package delivery during the pandemic-era boom in e-commerce.
Steiner's appearance is part of a broader series of congressional oversight hearings on federal agencies. The outcome of this testimony could shape the legislative agenda for postal reform in the coming months, as both chambers weigh competing proposals.
