U.S. Postal Service on brink of bankruptcy - FOX 13 News

U.S. Postal Service on brink of bankruptcy

Posted: Updated:
TAMPA (FOX 13) -

The U.S. Postal Service is facing a financial crisis. To avoid the potential of bankruptcy, it is defaulting on some of its bills.

Congress has failed to pass a plan to address mounting losses. The U.S. Postal Service continues to lose business to email, UPS, and Federal Express. It depends on product and postage sales, and does not receive tax money.

However, it is controlled by Congress, which has not approved cuts to service. So the post office must continue to provide services it cannot afford. According to estimates, the USPS is losing money at a rate of $25 million per day. This year, it expects to lose more than $14 billion.

It must pay years of employee benefits in advance, and is defaulting on payments to avoid bankruptcy. It will not pay $5.5 billion for future benefits to the U.S. Treasury due Wednesday. It also plans to default on $5.6 billion due in September.

Mail service will continue, offices will stay open, and workers will still get benefits and pay. But the postal service is operating under a system that is cannot sustain.

"It needs to stay. It needs to stick around. We need it," said Tampa substitute teacher Debra Cutler-Lurie. "I would be perfectly fine with cutting out Saturday delivery if we have to."

The post office has proposed cutting Saturday delivery and closing some rural offices to resolve its crisis. But Congress has not approved cuts and has not approved a bailout.

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