Key Issues > U.S. Postal Service's Financial Viability
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U.S. Postal Service's Financial Viability

Declining mail volume, annual net losses, and growing debt have contributed to the U.S. Postal Service’s (USPS) deteriorating financial condition and the need to restructure its unsustainable business model.

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Since mail volumes peaked in 2006, USPS’s financial condition has deteriorated as technology and the Internet have changed how businesses and consumers use the mail, resulting in:

  • annual mail volume decline and a 30 percent decline in USPS’s most profitable mail,
  • accumulated losses of $41 billion, and
  • debt totaling the statutory debt ceiling of $15 billion.

USPS’s financial condition has been designated as high risk because USPS’s business model is not viable as USPS cannot fund its current level of services, operations, and obligations from its revenues and urgently needs to restructure to reflect changes in mail volume, revenue, and use of the mail. Congress and USPS need to reach agreement on a comprehensive package of actions to achieve sustainable financial viability. Proposed strategies and options that Congress could consider to better align USPS costs with revenues and address constraints and legal restrictions that limit USPS’s ability to reduce costs and improve efficiency were reported in 2010. USPS issued a 5-year plan in February 2012 that included actions to reduce annual costs by at least $20 billion by 2015, and identified legislative changes needed to implement its plan.

Looking for our recommendations? Click on any report to find each associated recommendation and its current implementation status.

U.S. Postal Service

Challenges Related to Restructuring the Postal Service's Retail Network
GAO-12-433, Apr 17, 2012

U.S. Postal Service

Mail Processing Network Exceeds What Is Needed for Declining Mail Volume
GAO-12-470, Apr 12, 2012

U.S. Postal Service

Action Needed to Maximize Cost-Saving Potential of Alternatives to Post Offices
GAO-12-100, Nov 17, 2011

U.S. Postal Service

Allocation of Responsibility for Pension Benefits between the Postal Service and the Federal Government
GAO-12-146, Oct 13, 2011

U.S. Postal Service

Strategies and Options to Facilitate Progress toward Financial Viability
GAO-10-455, Apr 12, 2010

More Reports

U.S. Postal Service

Urgent Action Needed to Achieve Financial Sustainability
GAO-13-562T, Apr 17, 2013

U.S. Postal Service

Urgent Action Needed to Achieve Financial Sustainability
GAO-13-347T, Feb 13, 2013

U.S. Postal Service

Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products
GAO-13-216, Jan 15, 2013

U.S. Postal Service

Status, Financial Outlook, and Alternative Approaches to Fund Retiree Health Benefits
GAO-13-112, Dec 4, 2012

U.S. Postal Service

Field Offices' Role in Cost-Reduction and Revenue-Generation Efforts
GAO-12-506, Apr 25, 2012

U.S. Postal Service

Mail Trends Highlight Need to Fundamentally Change Business Model
GAO-12-159SP, Oct 14, 2011

U.S. Postal Service

Actions Needed to Stave off Financial Insolvency
GAO-11-926T, Sep 6, 2011

U.S. Postal Service

Ending Saturday Delivery Would Reduce Costs, but Comprehensive Restructuring Is Also Needed
GAO-11-270, Mar 29, 2011

U.S. Postal Service

Modernization and Restructuring Needed to Address Financial Challenges
GAO-11-428T, Mar 2, 2011

U.S. Postal Service

Legislation Needed to Address Key Challenges
GAO-11-244T, Dec 2, 2010
More...
  • portrait of Lorelei St. James
    • Lorelei St. James
    • Director, Physical Infrastructure
    • stjamesl@gao.gov
    • (202) 512-2834