Postal Service leadership brushes off calls to pause modernization plan, as financial losses continue

The U.S. Postal Service experienced a net loss of $9 billion in fiscal 2025, as the new postmaster general continues his predecessor’s overhaul initiative that members of both parties and mail stakeholders have argued is worsening performance without achieving financial benefits. 

USPS’ controllable loss, which excludes factors not overseen by management like workers’ compensation, was $2.7 billion for fiscal 2025, which is an increase from $1.8 billion during the previous year. The postal agency’s net loss in fiscal 2024 was $9.5 billion. 

These losses occurred despite a $916 million, or 1.2%, increase in operating revenue for a total of $80.5 billion. 

David Steiner, who became postmaster general in July, said at the postal agency’s board of governors meeting on Friday that financial performance is USPS’ most pressing challenge. In line with past statements backing Delivering for America, he also said that he does not intend to reevaluate former PG Louis DeJoy’s plan to promote the agency’s financial sustainability.

“While we may change specific initiatives as we move forward and our execution needs improvement, I do not see the need for a fundamental reassessment of our processing and logistics modernization strategies at this time,” Steiner said.

Delivering for America generally entails slowing some delivery and increasing the price of certain products. While DeJoy originally predicted USPS would break even by fiscal 2023 under the plan, Chief Financial Officer Luke Grossmann said on Friday that the agency is projected to continue operating at a net loss in fiscal 2026 with only a $900 million improvement. 

Steiner and members of the board, which includes individuals appointed by Joe Biden and Donald Trump, contended that putting USPS on firmer financial footing requires legislative and executive actions, including removing restrictions that only allow postal retirement funds to be invested in Treasury securities, adopting private sector best practices in the agency’s workers’ compensation program and raising the $15 billion statutory debt limit for USPS. 

In 2022, Congress passed legislation intended to stabilize USPS’ finances after more than a decade of billion-dollar losses. 

Postal stakeholders and lawmakers, however, have maintained that Delivering for America is exacerbating USPS’ financial woes. 

Marie Clarke, president of the Envelope Manufacturers Association, said during the public comment portion of Friday’s meeting that the plan hasn’t delivered for the public. 

“The financial losses and ongoing service delays are deeply concerning, and they tell us something important — it's time for an honest, collaborative recalibration of how we move forward,” she said. 

Likewise, the co-chairs of the bipartisan Congressional Postal Service Caucus in an October letter urged Steiner to pause implementation of the regional transportation optimization plan, which requires mail to sit overnight at post offices instead of being collected each evening for transportation to a processing center. 

“These changes would create additional delays for outgoing mail from predominantly rural areas,” wrote Reps. Nikki Budzinski, D-Ill., Jack Bergman, R-Mich., Chris Pappas, D-N.H. and Andrew R. Garbarino, R-N.Y. 

In the weeks leading up to Steiner’s start date, postal advocacy groups and associations also advised him to unwind Delivering for America.  

On Friday, Steiner envisioned expanding USPS “last mile” services that businesses rely on to ship to all U.S. addresses and creating more partnerships with other agencies to expand the availability of government services. 

“I've taken to saying that we cannot cost-cut our way to prosperity,” Steiner said. “We have to grow.” 

Board member Roman Martinez IV, who is leaving next month, warned that with his departure there will only be four remaining governors, leaving five openings. 

“Proper governance is critical for adequate oversight and strategic guidance to ultimately fulfill our fiduciary duties,” he said. “The Postal Service Board should be composed of individuals with diverse expertise and experience in relevant areas, including logistics, government, business, finance and governance. Accordingly, a full board is necessary to be able to include individuals with those qualifications.”

So far, Trump has nominated just one individual to the USPS board.