The U.S. Postal Service has suspended its contributions to a federal employee pension program as it faces a growing financial crisis, according to CBS News.
The report said USPS will pause payments to the Federal Employees Retirement System to conserve cash, while continuing employee contributions and other retirement payments.
USPS suspends contributions to employee pensions after warning of "cash crisis." https://t.co/lDumyrmfGD
— CBS News (@CBSNews) April 9, 2026
USPS contributes roughly $400 million monthly to the pension fund. Officials said the move could free up $2.5 billion this fiscal year to maintain operations. According to Postmaster General David Steiner, the agency could run out of cash within 12 months without major reforms.
Potential measures include raising stamp prices and reducing delivery days. USPS has struggled with declining mail volumes and rising costs, reporting a $9 billion loss in 2025.
Officials also cited higher fuel costs linked to the Iran conflict as an added burden. The agency has already announced temporary postage surcharges to offset expenses.
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