The USPS Board of Governors (BOG) held two meetings on Friday May 8th. A morning meeting which was closed under the sunshine act to discuss Strategic Matters, Financial and Operational Matters along with Administrative Matters. Often those meetings include items that the BOG must vote on before USPS can proceed with an action.
In the afternoon they held an open meeting to the public (but not open to public comment) meeting. The meeting recording can be viewed online with this link.
The meeting was called to order by Chairwoman Amber McReynolds, which proceeded with opening remarks from the PMG. Postmaster General David Steiner delivered an assessment of the Postal Service’s financial state, describing it as a “cash crisis” that requires immediate national attention.
In his May 8, 2026, remarks to the USPS Board of Governors, the PMG delivered an assessment of the Postal Service’s financial state, describing it as a “cash crisis” that requires immediate national attention.
Below is a summary of the key points from his address:
Financial Crisis and Liquidity
- Urgent Cash Shortage: Steiner warned that despite modest improvements, the Postal Service is facing a severe liquidity crisis.
- Modest Gains: While revenue, costs, and service results moved in a positive direction during the second quarter, the improvements are too small to achieve long-term sustainability.
- Emergency Measures: To manage the immediate cash shortage, the USPS has suspended its portion of payments for the Federal Employees Retirement System (FERS) as of April 10, 2026. (temporary waiver granted until 2030 by the PRC)
The “Self-Help” Strategy
- Selling More: Focusing on growth in the shipping and package sector.
- Adjusting Prices: Continuing to use pricing (full) authority to align with market realities.
We heard the Repeated Sentiment: He explicitly stated that the USPS “cannot cost-cut its way to prosperity”.
Call for Legislative and Regulatory Reform
Steiner called for Congress and the Postal Regulatory Commission (PRC) to act on several fronts:
- Expanded Borrowing Authority: To provide a safety net during the current cash crunch, they have exhausted their statutory $15 billion.
- Removal of Mandates: Possible relief from mandates regarding delivery frequency (days of service), the inability to close unprofitable offices, and price caps on First-Class Mail.
- Modernizing the 1971 Mandate: He urged a return to the original intent of the Postal Reorganization Act, giving financial relief to the USPS serving its public mission which it does so at a loss at some delivery points and retail offices. This part of the reorg bill was utilized by USPS until 1982 when they stopped asking for it.
Steiner ended with a message that if Congress and regulators treat the Postal Service as a critical piece of national infrastructure rather than a partisan issue, solutions could be found.
