Oversight of the U.S. Postal Service: The Financial Future Under Postmaster General Steiner

Health Care Costs and Drug PricingHouse Oversight and Government Reform Subcommittee on Government Operations · March 17, 2026 · 119th Congress
The House Oversight Subcommittee on Government Operations held this hearing to examine the U.S. Begins at ▶ 0:17:45
Transcript
Highlights

Title

USPS financial crisis and borrowing authority under Postmaster General Steiner

Purpose

The House Oversight Subcommittee on Government Operations held this hearing to examine the U.S. Postal Service's deteriorating finances, including its warning that it could run out of cash within 12 months, and to press Postmaster General David Steiner on cost-cutting, pricing, and his request for increased borrowing authority from the Treasury. Witnesses Steiner and GAO's David Marroni testified alongside questioning from subcommittee members on the Delivering for America plan, service delays, worker safety, and election-mail integrity. Begins at▶ 0:17:45

Who spoke

• Chairman Pete Sessions (R-TX)▶ 0:17:45: Opened by noting USPS loses billions yearly and will run out of cash in 12 months▶ 0:18:10; pressed for transparency and exhaustion of options before Congress raises borrowing authority▶ 0:19:49; later engaged in an extended closing colloquy with Steiner about needing agreement on tough decisions and a long-term vision▶ 3:00:08.

• Ranking Member Kweisi Mfume (D-MD)▶ 0:22:12: Warned against efforts to politicize or privatize USPS, citing DeJoy's departure under White House pressure▶ 0:23:54; cited a 41% first-class mail price increase since 2021 alongside slower delivery standards▶ 0:24:50 and the FY2025 $9 billion net loss▶ 0:25:44; touted the bipartisan Vote by Mail Tracking Act▶ 0:27:16 and the Postal Police Officer safe delivery initiative▶ 0:29:41.

• Postmaster General David Steiner▶ 0:34:37: Said USPS will be out of cash in under 12 months absent action▶ 0:34:37; detailed lost mail volume from 213 billion to 109 billion pieces, worth about $81 billion at current stamp price▶ 0:35:02; listed "anchors" including $3 billion in unfair CSRS costs, a $15 billion borrowing cap unchanged for decades, and 71% of delivery routes losing money▶ 0:36:01; proposed raising the stamp to 90–95 cents▶ 0:38:59; later detailed the CDL/gig-driver safety issue▶ 2:22:40 and pledged to visit the Allen Park, Michigan facility▶ 2:39:37.

• David Marroni, GAO Director of Physical Infrastructure▶ 0:40:50: Said GAO has flagged USPS finances as high-risk for over 15 years▶ 0:41:09; said USPS cannot fix its finances alone and Congress must act▶ 0:43:26; noted USPS faces an additional $6 billion/year in retiree health costs within five years▶ 0:43:48.

• Rep. James Comer (R-KY), Full Committee Chairman▶ 0:45:37: Pressed Steiner on ending the wasteful USPS Ship program after a $1.5 billion OIG finding▶ 0:45:37; questioned cost savings from the hub-and-spoke network transformation ($2.1–2.2 billion of a projected $3.6 billion)▶ 0:48:17; challenged Steiner on insourcing versus privatization▶ 0:51:31.

• Rep. Virginia Foxx (R-NC)▶ 0:58:22: Shared personal examples of late mail (a Valentine's card, wedding invitations)▶ 0:58:50; asked what evidence shows the Delivering for America plan is working▶ 0:59:49 and pressed for specifics on cutting controllable costs▶ 1:01:17.

• Rep. Eleanor Holmes Norton (D-DC)▶ 1:04:04: Asked Steiner to report within 30 days on DC post offices closed during business hours▶ 1:04:51; questioned whether costs would be disproportionately borne by customers via price hikes▶ 1:05:50.

• Rep. Gary Palmer (R-AL)▶ 1:09:03: Cited an Envelope Manufacturers Association report showing stable revenue (~$78–79 billion) against rising controllable costs, and that a 2% annual cost cut could reach break-even by 2030▶ 1:09:27; questioned the cost of electric delivery vehicles from Oshkosh versus Ford▶ 1:10:47; requested a revenue/cost breakdown by mail category▶ 1:12:06.

• Rep. Maxwell Frost (D-FL)▶ 1:15:32: Raised concerns about postal workers being used for 2030 Census citizenship-status pilots▶ 1:15:32; asked about the Regional Transportation Optimization (RTO) initiative's effect on delivery speed▶ 1:17:45; asked Marroni how privatization would affect rural service▶ 1:19:05.

• Rep. Brandon Gill (R-TX)▶ 2:18:21: Pressed Steiner repeatedly on non-domiciled CDL drivers hauling mail, citing whistleblower reports and a VP of Transportation Strategy's comments▶ 2:18:48.

• Rep. Emily Randall (D-WA)▶ 2:24:35: Raised the prolonged closure of the MLK Post Office in Tacoma due to water/mold damage▶ 2:24:35; asked what percentage of USPS facilities are leased versus owned (about 60% leased)▶ 2:27:35; raised concerns about politicization of vote-by-mail▶ 2:28:53.

• Rep. Tim Burchett (R-TN)▶ 2:29:56: Asked for the latest estimate of when USPS runs out of cash (October–November, or February if payments are stretched)▶ 2:30:25; questioned Steiner on the Postal Regulatory Commission's last order costing USPS $700 million to $1 billion▶ 2:32:58.

• Rep. Shri Thanedar / Rep. "Mr. Lee" (D-MI)▶ 2:36:21: Described the death of postal worker Nicholas Aker at the Allen Park, Michigan facility, found dead in a mail-handling machine after concerns about unsafe practices▶ 2:36:50; pressed Steiner for accountability and a facility visit▶ 2:39:11.

• Rep. Rich McCormick / "Mr. Jack" (R-GA)▶ 2:42:53: Asked whether any version of USPS's future avoids congressional intervention▶ 2:43:17; raised local post office issues in Tyrone and Thomaston, Georgia, including a fire-damaged retail facility and ADA access problems▶ 2:46:18.

• Rep. Delia Ramirez / "Ms. Walkinshaw" (D-VA)▶ 2:48:28: Entered into the record a letter from 66 members of Congress on the 2026 Census test▶ 2:48:51 and a Commerce IG report on the same▶ 2:49:18; pressed Steiner to commit to five-year financial projections▶ 2:50:05; questioned outsourcing workers' comp given past CBA compliance failures costing $860 million▶ 2:51:22.

• Rep. Nikki Budinski (D-IL)▶ 2:53:49: Cited FY2025's $9 billion loss and a further $1.4 billion loss in Q1 FY2026▶ 2:54:05; cited declining on-time delivery in her district, from 92% in FY2019 to 83%▶ 2:54:55; asked about indicators that would prompt suspending the Delivering for America plan▶ 2:56:33 and about the Alvarez & Marsal restructuring engagement▶ 2:58:49.

Key moments

• Steiner testified USPS will run out of cash in under 12 months absent action, and detailed "anchors" including a $15 billion borrowing cap that should be $30–40 billion adjusted for inflation, and $3 billion/year in unfair CSRS costs▶ 0:34:37▶ 0:36:01.

• Steiner proposed raising the first-class stamp to 90–95 cents, still less than half the cost of France's (~$3) or England's (~$2.50) postage, while USPS delivers up to 5,000 miles for $0.78▶ 0:38:32▶ 0:38:59.

• Marroni stated GAO has called USPS finances high-risk for 15+ years and that USPS cannot fix its business model on its own — Congress must act, including possibly providing near-term financial relief▶ 0:41:09▶ 0:43:26.

• Comer pressed Steiner on the USPS Ship program, which an OIG report found wasted over $1.5 billion despite a CFO agreement to end it; Steiner would not commit to ending it immediately▶ 0:45:37▶ 0:46:59.

• Rep. Gill confronted Steiner with whistleblower documentation of non-domiciled CDL holders driving for USPS contractors and a recorded USPS transportation official acknowledging the scale of the problem; Steiner said he was unaware and asked for the material▶ 2:18:48▶ 2:20:48.

• Rep. Lee described the death of postal worker Nicholas Aker, found dead in a mail-sorting machine at the Allen Park, Michigan facility after being trapped for 6–8 hours, and pressed Steiner for accountability; Steiner said he would visit the facility▶ 2:36:50▶ 2:40:32.

• Steiner said the Postal Regulatory Commission's most recent pricing order will cost USPS $700 million to $1 billion, arguing every company doing business with USPS makes money while USPS alone loses money▶ 2:33:25▶ 2:33:56.

• Palmer challenged Steiner on next-generation delivery vehicle costs (Oshkosh EVs ~$20,000 more than conventional trucks vs. ~$10,000 more from Ford), with total vehicle costs approaching $10 billion against a $3 billion Inflation Reduction Act allocation▶ 1:10:47.

• Budinski cited declining on-time delivery in her Illinois district, down from 92% in FY2019 to 83%, with some areas below 70% in 2024–2025, and pressed for continued strong PRC and IG oversight▶ 2:54:55▶ 2:55:22.

• Chairman Sessions and Ranking Member Mfume closed by committing to a joint, more intensive working process with Steiner on borrowing-authority legislation, with Mfume noting the $15 billion debt limit has not been revisited in 35 years▶ 3:12:12▶ 3:00:08.

Metadata

CommitteeHouse Oversight and Government Reform Subcommittee on Government Operations
Chamber / CongressHouse · 119th Congress
DateMarch 17, 2026
TypeHearing
Witnesses
The Honorable David Steiner — Postmaster General, U.S. Postal Service
Mr. David Marroni — Director / Physical Infrastructure, U.S. Government Accountability Office
Videoyoutube
Transcript282 caption blocks · 20,577 words · 3:17:33 runtime
EventCongress.gov 119064