USPS Suspends Nonessential Expenses Amid Cash Shortage, Postmaster General Cites Temporary Liquidity Crisis

The United States Postal Service (USPS) has suspended discretionary spending across the organization due to a temporary cash-flow shortage. Postmaster General David Steiner announced the move in a memo to employees, citing the need to manage available resources responsibly.

The restrictions cover nonessential expenses such as travel, office supplies, and professional services that do not support essential work. The spending curbs will remain in place until the agency’s cash position stabilizes.

The USPS is working to repair its finances after years of staggering losses, and Steiner has said the agency is set to run out of cash by early 2027. The agency has taken other steps to avoid this fate, including raising prices on stamps and parcel shipping, halting pension payments, and retaining the services of restructuring adviser Alvarez & Marsal.

Additionally, the USPS has announced a new multiyear agreement with global courier DHL, under which it will exclusively handle last-mile e-commerce deliveries, bringing in at least $10 billion in revenue over time.