{"id":39148,"date":"2026-03-18T11:08:59","date_gmt":"2026-03-18T16:08:59","guid":{"rendered":"https:\/\/postalemployeenetwork.com\/news\/?p=39148"},"modified":"2026-03-18T11:08:59","modified_gmt":"2026-03-18T16:08:59","slug":"gao-urgent-action-needed-to-fix-unsustainable-usps-business-model-and-improve-service-performance","status":"publish","type":"post","link":"https:\/\/postalemployeenetwork.com\/news\/2026\/03\/18\/gao-urgent-action-needed-to-fix-unsustainable-usps-business-model-and-improve-service-performance\/","title":{"rendered":"GAO: Urgent Action Needed to Fix Unsustainable USPS Business Model and Improve Service Performance"},"content":{"rendered":"<h2 class=\"field__label\">Fast Facts<\/h2>\n<div class=\"field__item\">\n<p class=\"gao-ff-text\">3\/17\/26 &#8211; We testified on U.S. Postal Service&#8217;s financial condition and service performance before the House Committee on Oversight and Government Reform, Subcommittee on Government Operations. It is based primarily on these reports:<\/p>\n<ul>\n<li class=\"gao-ff-bullet\"><a href=\"https:\/\/www.gao.gov\/products\/gao-25-107743\">High-Risk Series: Heightened Attention Could Save Billions More and Improve Government Efficiency and Effectiveness<\/a><\/li>\n<li class=\"gao-ff-bullet\"><a href=\"https:\/\/www.gao.gov\/products\/gao-26-107336\">U.S. Postal Service: Action Needed to Fix Unsustainable Business Model<\/a><\/li>\n<\/ul>\n<p class=\"gao-ff-text\">USPS hasn\u2019t addressed our prior recommendation to develop publicly available projections of its revenue and expenses. We also reiterate that Congress should consider fully addressing questions about how much postal service the nation needs and how much of that service should be financially self-sustaining.<\/p>\n<p><a href=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-495.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-39149\" src=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-495.jpg\" alt=\"\" width=\"495\" height=\"280\" srcset=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-495.jpg 495w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-495-300x170.jpg 300w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-495-123x70.jpg 123w\" sizes=\"auto, (max-width: 495px) 100vw, 495px\" \/><\/a><\/p>\n<h2 class=\"field__label\">Highlights<\/h2>\n<div class=\"field__item\">\n<h2>What GAO Found<\/h2>\n<p class=\"h-Body_Text\">The U.S. Postal Service (USPS) continues to be in poor financial condition. It has lost money every fiscal year but one since 2007 (see figure). While accumulating $118 billion in net losses over that time, USPS has maintained enough cash reserves to continue operations. It has done so in part by borrowing from the U.S. Treasury the maximum $15 billion it is allowed by statute and by either not making or only partially making required annual funding payments towards its liabilities for retiree health and pension benefits. With billions in new expenses expected by 2031, USPS\u2019s financial condition is at a critical point. The Postmaster General has stated that USPS could run out of cash in early 2027.<\/p>\n<p><a href=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-Image-3.18.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-39150\" src=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-Image-3.18.jpg\" alt=\"\" width=\"650\" height=\"292\" srcset=\"https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-Image-3.18.jpg 650w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-Image-3.18-300x135.jpg 300w, https:\/\/postalemployeenetwork.com\/news\/wp-content\/uploads\/2026\/03\/GAO-Image-3.18-570x256.jpg 570w\" sizes=\"auto, (max-width: 650px) 100vw, 650px\" \/><\/a><\/p>\n<div class=\"js-endpoint-highlights clearfix text-formatted field field--name-product-highlights-custom field--type-text-long field--label-above quickedit-field\">\n<div class=\"field__item\">\n<p class=\"h-Body_Text\">In 2021, USPS introduced a 10-year strategic plan designed to improve its financial condition while fulfilling its statutory mandates. Since then, USPS has taken several actions to increase revenue and reduce expenses, such as raising prices, realigning its transportation network, and redesigning its processing operations. In addition, Congress provided some financial relief through the Postal Service Reform Act of 2022. However, these actions have not been enough to fix USPS\u2019s unsustainable business model. As GAO has reported, USPS will need to continue to take actions within its own authority to increase its revenues and reduce expenses. Additionally, Congress should take timely action to determine the services it wants USPS to provide and the extent to which USPS should be self-sustaining, consistent with GAO\u2019s prior recommendations.<\/p>\n<p class=\"h-Body_Text\">USPS\u2019s service performance has continued to decline in recent years despite lower service standards. Specifically, in fiscal year 2022, USPS revised certain First-Class Mail service standards from a 1-to-3-day delivery window to a 1-to-5-day window. However, since then, USPS data shows that on-time performance has generally declined. For example, First-Class Mail on-time performance declined from 91 percent to about 86 percent from fiscal year 2022 to 2025. Both the USPS Office of the Inspector General and the Postal Regulatory Commission have raised concerns about USPS\u2019s service standards and performance, including possible service impacts on customers in rural areas.<\/p>\n<h2>Why GAO Did This Study<\/h2>\n<p class=\"h-Gray-Col-Text\">USPS\u2019s financial viability has been on GAO\u2019s High-Risk List since 2009 as rising costs and lower mail volumes have made its business model unsustainable. There is a fundamental tension between the level of service Congress expects USPS to provide and the revenue USPS can reasonably be expected to generate. It is critical for USPS and Congress to address USPS\u2019s unsustainable business model before it is responsible for billions in new annual expenses for retiree health care within the next 5 years.<\/p>\n<p class=\"h-Gray-Col-Text\">This statement discusses: 1) USPS\u2019s current financial condition, 2) actions USPS and Congress have taken to address its financial condition, and 3) USPS\u2019s service performance.<\/p>\n<p class=\"h-Gray-Col-Text\">GAO\u2019s description of USPS\u2019s current financial condition and the actions it has taken to address that condition is based on GAO\u2019s prior work, including the 2025 High-Risk Update. GAO\u2019s description of USPS\u2019s service performance is based on GAO\u2019s prior work and recent reports from the USPS Office of the Inspector General and the Postal Regulatory Commission.<\/p>\n<\/div>\n<div>\n<section>\n<h2>Recommendations<\/h2>\n<div class=\"js-endpoint-recommendations clearfix text-formatted field field--name-field-recommendations-intro field--type-text-long field--label-hidden field__item\">\n<p class=\"h-Gray-Col-Text\">GAO previously reported that USPS should continue to take actions to address its financial condition. GAO also reiterates that Congress should consider, among other things, fully addressing the level of postal service the nation requires and the extent to which USPS should be financially self-sustaining.<\/p>\n<p class=\"h-Gray-Col-Text\">\n<\/div>\n<\/section>\n<section class=\"js-endpoint-full-report full-reports-group\">\n<h2>Full Report<\/h2>\n<div class=\"field-group-content-wrapper\">\n<div class=\"field field--name-field-full-reports field--type-entity-reference field--label-hidden field__items\">\n<div class=\"field__item\">\n<figure class=\"media media--view-mode-teaser media--type-file file-type--PDF file-mime--application-pdf\">\n<div class=\"field field--name-field-link-label field--type-string field--label-hidden field__item\"><a href=\"https:\/\/www.gao.gov\/assets\/gao-26-109008-highlights.pdf\">Highlights Page<\/a> (1 page)<\/div>\n<\/figure>\n<\/div>\n<div class=\"field__item\">\n<figure class=\"media media--view-mode-teaser media--type-file file-type--PDF file-mime--application-pdf\">\n<div class=\"field field--name-field-link-label field--type-string field--label-hidden field__item\"><a href=\"https:\/\/www.gao.gov\/assets\/gao-26-109008.pdf\">Full Report<\/a> (19 pages)<\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fast Facts 3\/17\/26 &#8211; We testified on U.S. Postal Service&#8217;s financial condition and service performance before the House Committee on Oversight and Government Reform, Subcommittee on Government Operations. It is based primarily on these reports: High-Risk Series: Heightened Attention Could Save Billions More and Improve Government Efficiency and Effectiveness U.S. Postal Service: Action Needed to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":39149,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,16],"tags":[],"class_list":["post-39148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-usps-news","last_archivepost"],"_links":{"self":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/39148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/comments?post=39148"}],"version-history":[{"count":1,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/39148\/revisions"}],"predecessor-version":[{"id":39151,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/39148\/revisions\/39151"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/media\/39149"}],"wp:attachment":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/media?parent=39148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/categories?post=39148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/tags?post=39148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}