USPS Will Not Survive Without Law Changes

The Postmaster General told a congressional subcommittee Wednesday that despite taking aggressive steps to reduce costs, the U.S. Postal Service (USPS) will not survive as a self-financing entity without significant changes to current law.

Postmaster General Patrick R. Donahoe testified before the Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy on Oversight and Government Reform that during the last two fiscal years, the Postal Service has reduced costs by some $9 billion and the plan is to take out another $2 billion in 2011. But the Postal Service still lost a “staggering” $8.5 billion in 2010 and is projecting to be in the red this year by $6.4 billion.