USPS Is Running Out of Money and On-Time Delivery Has Dropped to Its Lowest Point in Years
The US Postal Service posted a $1.3 billion loss in Q1 FY2026 and a $2.0 billion loss in Q2, on pace for an $8.1 billion net loss for the full year. The Postmaster General has said USPS could run out of cash in early 2027. At the same time, First-Class Mail on-time performance has declined from 91% to about 86% between fiscal years 2022 and 2025. The Delivering for America modernization plan meant to fix both problems is now the subject of open disagreement among USPS leadership and Congress about whether to continue, pause, or scrap it.
Who has this problem
Rural residents and small-town mail users
People who depend on USPS where alternatives are few or costly.
Small online sellers shipping through USPS
Businesses exposed to on-time performance that fell from 91% to about 86%.
Older adults and mail-order prescription users
People who rely on the mail for time-sensitive deliveries.
Nonprofits and small mailers
Organizations that use mail for bills, appeals, and notices.
Signal timeline
USPS reports a $2.5 billion net loss for Q3 FY2026 (down from $3.1 billion a year earlier), on operating revenue up 6.1% to $19.9 billion and a controllable loss of $1.0 billion (vs. $1.6 billion in Q3 FY2025) — the third straight quarter of improvement over the prior year, achieved partly by deferring roughly $1.4 billion in pension obligations, which USPS itself says 'cannot represent long-term solutions.'
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