Quick Answer: Is The USPS In Financial Trouble?

How is the USPS doing financially 2020?

The Postal Service reported total revenue of $17.6 billion for the third quarter of fiscal 2020, an increase of $547 million, or 3.2 percent, compared to the same period last year.

First-Class Mail revenue decreased by $373 million, or 6.4 percent, on a volume decline of 1.1 billion pieces, or 8.4 percent..

Why is USPS losing money?

Postmaster General Megan Brennan told House lawmakers earlier this month that the pandemic is causing an unprecedented drop in mail. The agency is anticipating a loss of $13 billion in revenue this fiscal year due to the crisis and another $54 billion in losses over 10 years.

Is the USPS the largest employer of veterans?

Veterans. The Postal Service employs more than 97,000 military veterans and is one of the largest employers of veterans in the country. The Postal Service also has issued more than 140 stamps honoring the nation’s military history, including the Service Cross Medals stamps.

How much money did the post office lose last year?

The U.S. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. The results marked the 13th consecutive year the mailing agency lost money, although USPS did post a slight uptick in revenue to $71.3 billion.

Who funds the post office deficit?

In real life, however, the USPS is not funded by congressional appropriations. Rather, since the 1970s, Congress has required the Postal Service to simultaneously: Finance its own operations, as though it were a business.

Does USPS take taxpayer money?

Since the early 1980s, many direct tax subsidies to the USPS (with the exception of subsidies for costs associated with disabled and overseas voters) have been reduced or eliminated. The USPS, as of 2019, has 469,934 career employees and 136,174 non-career employees.

Who is in charge of the post office?

Incumbent 475 L’Enfant Plaza SW, Washington, D.C. The United States postmaster general (PMG) is the chief executive officer of the United States Postal Service (USPS). The postmaster general is responsible for managing and directing the day-to-day operations of the Postal Service.

How much in debt is the post office?

The Postal Service has racked up $160.9 billion in debt from what’s owed prepaying retiree benefits. On top of that, it has many years’ worth of operating deficits, as its top revenue generators no longer covered the costs of delivering the mail.

Is USPS going out of business?

3rd class, 1st class, priority and express mailing. No the Post Office is not going out of business. We are an entity of the Constitution of the United States. We are here to serve the people across the world.

Why is the USPS broke?

The U.S. Postal Service’s (USPS) financial condition continues to deteriorate as a result of trends including:Declining mail volume : First-Class Mail—USPS’s most profitable product—continues to decline in volume as communications and payments migrate to electronic alternatives.

What happens if the USPS is privatized?

A privatized USPS would pay federal, state, and local taxes, which would put the USPS on a level playing field with other businesses.

Does the US Post Office make a profit?

Remember, the USPS does NOT receive and revenue from the American taxpayer, their only source of revenue is for products and services! And the list goes on: They cannot add a fuel surcharge to pricing (as FedEx and UPS can) to maintain profit levels.

Is the post office self sufficient?

Specifically, USPS is expected to be financially self-sufficient by covering its expenses through revenues generated from the sale of its products and services. However, USPS is no longer able to do so. … Both Congress and USPS need to act to put it on a sustainable financial footing.

Who owns USPS?

The U.S. Postal Service (USPS) is a large business enterprise operated by the federal government. It has more than 600,000 employees and more than $70 billion in annual revenues.