The USPS is an independent agency of the US government that is self-sufficient and has not received tax dollars since the early ’80s, but according to a new report from the Government Accountability Office (GAO), taxpayers will be stuck with a bailout if something isn’t done about the recent shortfalls.
“If no action is taken, the risk of USPS’s insolvency and the need for a bailout by taxpayers and the U.S. Treasury increases,” the GAO said.
The USPS in February reported a loss of $297 million for the first quarter of its fiscal year, blaming the recession and the use of electronic mail. The USPS, which delivers nearly half of the world’s mail, has posted net losses since 2007.
In addition to the erosion of its business due to email, the service also faces competition from FedEx and United Parcel Service.
Last month, the postal service moved forward with its proposal to cut costs by ending Saturday mail delivery. Such a proposal would eventually have to be approved by Congress.
If you’d like to read the 80-page report, you can download it here.