US Postal Service in the Red, May Default Again
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PAUL J. RICHARDS/AFP/Getty Images(NEW YORK) — Postmaster General Patrick Donahue says his agency will be forced to miss a $5.6 billion payment due to the Treasury on Sunday.
For more than a year the Postal Service has been asking Congress to let it make cuts such as no more Saturday mail delivery and smaller payments for future retiree health benefits. But there has been no approval so far, and Congress is not in session until after the November election.
Donahue said the post office will hit a low point in cash next month, but will avert immediate bankruptcy due to a series of retirement incentives, employee reductions and boosts in productivity among remaining staff that saved nearly $2 billion over the past year.
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