USPS Cash Crisis: The United States Postal Service has started a temporary money-saving step as it deals with serious financial trouble. Beginning April 10, 2026, USPS stopped making its employer contributions to the Federal Employees Retirement System, also called FERS. The agency said this move is meant to help it save cash and keep basic work going, like paying workers, paying suppliers, and delivering mail across the country. USPS has described this as part of a cash conservation plan, not a permanent change.
USPS said this action is being taken because its money situation has become very difficult. The agency warned that without broader reform, it could run out of cash by February 2027. It has been under pressure for years as regular first-class mail keeps falling and costs keep rising. Reuters reported that USPS has posted $118 billion in net losses since 2007, and AP said the agency is facing a severe financial crisis.
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What this means for Workers and Retirees?
Even though stopping pension contributions sounds alarming, USPS says current retirees will not lose benefits because of this temporary move. The agency also said current workers will still have their own FERS contributions sent through, and Thrift Savings Plan contributions will continue as well. A USPS FAQ says there will not be any immediate harmful effect on current or future retirees from this temporary hold on normal FERS cost payments.
Still, the decision has raised worries because pension payments are an important part of long-term retirement support. If the pause lasts too long, workers may become more uneasy about what happens next. USPS has tried to make clear that this is only a temporary step for a hard financial period. But the move also shows just how serious the pressure has become inside the agency.
Bigger problems are still there
USPS has already been trying many ways to improve its finances. It has changed prices, looked for new revenue, and worked to grow package delivery. At the same time, it is still dealing with falling traditional mail use, which used to be one of its strongest sources of income.
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Reuters said first-class mail volume has dropped to its lowest level since the late 1960s. USPS reported a $1.25 billion quarterly loss in February, and the agency is now looking at more price increases, including a proposal to raise the Forever stamp from 78 cents to 82 cents in July if regulators approve it.
