Postal Service May Default Without Congressional Intervention

Predictions of coming doom have been coming from the United States Post Office for months, with the service expected to suffer a $9.2 billion deficit this fiscal year and unable to make a $5.5 billion payment to cover employee health coverage due at the end of the month. Now the postmaster general has raised the stakes of the organization’s financial crisis by declaring that it will default if Congress doesn’t intervene.

In an interview with The New York Times, he says “Our situation is extremely serious. If Congress doesn’t act, we will default.”

The course toward the potential government bailout could start Tuesday, when the Senate Homeland Security and Governmental Affairs Committee holds a hearing on the sorry state of the postal service.

Postal Service Is Nearing Default as Losses Mount [The New York Times]

Previously: Postal Service May Lay Off 120,000