Criminal Law Library Blog
The House Subcommittee on Government Operations has now concluded its March 17, 2026 hearing on “Oversight of the United States Postal Service: The Financial Future Under Postmaster General David Steiner,” and the message emerging from Capitol Hill is unmistakable: the United States Postal Service (USPS) faces mounting financial pressure, and time to act may be running short. According to the Subcommittee’s official wrap-up, the Postal Service’s “already-troubled financial situation is getting worse,” prompting renewed concern over whether the agency can remain viable without significant structural change.
A System Under Strain
Testimony before the Subcommittee underscored the scale of the challenge. Postmaster General David Steiner pointed to a dramatic collapse in traditional mail volume, from 213 billion pieces annually at its peak to approximately 109 billion today, representing a loss of over 100 billion pieces of mail and tens of billions in lost revenue. At the same time, while USPS has taken steps to increase revenue and reduce costs, those efforts have not kept pace with rising expenses. As the Government Accountability Office (GAO) emphasized, the current trajectory “is not sustainable,” with service performance declining even as costs continue to grow.
The Core Policy Challenge: Revenue vs. Costs
A central theme of the hearing—and one that resonates across multiple policy discussions—was the need for a balanced approach:
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Revenue Growth: Steiner emphasized that USPS cannot simply cut its way to stability. Pricing reforms, including potential increases in postage rates, are under consideration, with U.S. rates still among the lowest in the industrialized world.
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Cost Discipline: At the same time, lawmakers pressed USPS leadership on labor costs, program spending, and operational efficiency, highlighting concerns about duplication and inefficiency.
Borrowing Authority—and Congressional Confidence
Another critical issue is whether Congress should expand USPS borrowing authority from the U.S. Treasury. Lawmakers made clear that any such will depend on confidence that USPS can repay its obligations and demonstrate a credible path to long-term financial stability. Steiner acknowledged the urgency, warning that maintaining the status quo is not an option and that additional borrowing could provide only temporary relief—buying time for deeper structural reforms.
No Easy Solutions—and No Time to Delay
Perhaps the most sobering takeaway came from GAO testimony: while meaningful reforms have been attempted, including a 10-year modernization plan and legislative relief, these actions have not been sufficient to restore financial balance. In fact, broader GAO analysis continues to classify USPS’s business model as fundamentally unsustainable without further congressional action, particularly in addressing long-term liabilities and defining the appropriate level of universal service.
Why This Matters
The stakes extend well beyond postal operations. The USPS remains a cornerstone of the nation’s civic and economic infrastructure, supporting election systems, delivering medications, and enabling commerce across urban and rural communities alike.
What this hearing makes clear is that the debate is no longer simply about modernization, it is about viability.
Congress now faces a set of difficult but unavoidable choices:
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How much service should USPS provide?
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How should that service be funded?
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And to what extent should the agency operate as a self sustaining enterprise versus a publicly supported institution?
The Subcommittee’s findings sharpen the focus on a fundamental reality: the USPS cannot continue on its current path without meaningful reform. Whether through pricing changes, operational restructuring, legislative intervention, or some combination thereof, action will be required—and soon.
As policymakers, practitioners, and observers reflect on this latest hearing, one conclusion stands out: the future of the Postal Service will depend not only on internal reforms, but on Congress’s willingness to confront the structural challenges that have been building for nearly two decades.