US Postal Service rescue from new Congress needed, losing $25 million everyday, Postmaster General says

By on Jan 6, 2013 in Business, Finance, Lifestyle, United States Comments

Updated: April 18, 2013 3:20 p.m.

Read Losing $25M a day for USPS needs flexibility, Postmaster General Patrick Donahoe tells US Congress

The US Postal Service needs rescue from the new Congress, with Postmaster General Patrick Donahoe noting on Thursday, January 3, 2013 that the USPS is now losing $25 million everyday. The appeal comes after its announcement last October that US stamp prices will go higher again starting January 2013.

US Postmaster General Patrick Donahoe

US Postmaster General Patrick Donahoe
Image Credit: ABC video

According to a post by the USPS on its official website that day, Patrick Donahoe, who officially became the Postmaster General since January 14, 2011, released a statement on his concerns on the financial crisis of the US Postal Service, urging the new 113th Congress to prioritize making a postal reform.

“The 112th Congress adjourned without having passed postal legislation. Such legislation could quickly restore the Postal Service to profitability and put the organization on a stable, long-term financial footing. This lack of action is disappointing.” Donahoe was quoted at USPS.com.

“The Postal Service has worked closely with the Congress over the past two years to advance a framework for a viable business model that will allow us to quickly respond to the evolving needs of our customers.” Donahoe added, noting that there were approximately 60,000 jobs cut over the past two years.

“As we look to the coming year, we are on an unsustainable financial path. We are currently losing $25 million per day; we have defaulted on $11.1 billion in Treasury payments and exhausted our borrowing authority.” The Postmaster General further said; with cost reduction measures include closing some of its offices.

As we all know, the USPS is an independent agency of the United States government and has not directly received money from US taxpayers since the early 1980s. The declining mail volume is being brought about by the increase use of email and other electronic forms of communication via the Internet.



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