WASHINGTON, D.C.-Everyone is looking for a parachute from Congress to stave off losses during the COVID-19 pandemic, even the United States Postal Service.
Here’s what we know…
- USPS to lose $13 billion due to COVID-19
- USPS received no money from COVID-19 stimulus
- $75 billion requested to keep the lights on through October
- Postal Service is going to lose $18 billion over next 18 months.
- $54 billion longterm losses expected.
Postmaster General Heads to Capitol Hill
This week, on Capitol Hill, USPS Postmaster General Megan Brennan told lawmakers her agency needs $75 billion just to keep the doors open and mail delivered. Brennan told Congress the postal service is expecting to lose $13 billion due to the coronavirus epidemic.
The U.S. Postal Service received no funding under the recent COVID-19 economic stimulus package.
“We are at a critical juncture in the life of the Postal Service. At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business. The Postal Service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover,” Brennan said. “We now estimate that the COVID-19 pandemic will increase the Postal Service’s net operating loss by more than $22 billion dollars over the next eighteen months, and by over $54 billion dollars over the longer term, threatening our ability to operate.”
Brenna gave recognition to the postal carriers working through the COVID-19 epidemic
“The men and women of the United States Postal Service provide an essential public service and bind the nation together as a part of the country’s critical infrastructure. At least six days per week, and in some instances seven, Postal Service employees accept, process, transport, and deliver vital mail and packages like medicine, products that sustain us, benefits checks, and important information, in every community, to every home and residence, and we will continue to do so,” she said, “As Americans are urged to stay home, the importance of the mail will only grow as people, including those in rural areas and senior citizens, will need access to vital communications, essential packages and other necessities.”
As Congress and the Administration take steps to support businesses and industries around the country, Brennan said it is imperative that they also take action to shore up the finances of the Postal Service, and enable us to continue to fulfill their role during the pandemic, and to play an effective role in the nation’s economic recovery.
“We are grateful for the heroism and commitment of our 630,000 postal employees who continue to serve the American public during this pandemic, and we look forward to working with policymakers on ensuring the solvency of the Postal Service,” she said.
Photo by Pope Moysuh