Report: U.S. Postal Service could shut down by June

Coronavirus

ROCKFORD, Ill. (WTVO) — According to a new report, the U.S. Postal Service could shut down within the next several months without additional federal funding.

CBS News reports that Rep. Carolyn Maloney (D-New York), chair of the Committee on Oversight and Reform, and Rep. Gerry Connolly (D-Virginia), chair of the Subcommittee on Government Operations, sent a letter to Senate Majority Leader Mitch McConnell (R-Kentucky) saying that the coronavirus outbreak is a threat to the future of mail service.

“The Postal Service is in need of urgent help as a direct result of the coronavirus crisis,” they said. “Based on a number of briefings and warnings this week about a critical fall-off in mail across the country, it has become clear that the Postal Service will not survive the summer without immediate help from Congress and the White House. Every community in America relies on the Postal Service to deliver vital goods and services, including life-saving medications.”

USPS relies on fees rather than taxes to operate, and may be forced to shut down operations in June.

“These negative effects could be even more dire in rural areas, where millions of Americans are sheltering in place and rely on the Postal Service to deliver essential staples,” the lawmakers warned. 

The two democratic lawmakers proposed a bill for a $25 billion emergency fund for the postal service.

According to CBS News, a USPS spokesperson said, “The United States Postal Service appreciates the inclusion of limited emergency borrowing authority during this COVID-19 pandemic. However, the Postal Service remains concerned that this measure will be insufficient to enable the Postal Service to withstand the significant downturn in our business that could directly result from the pandemic. Under a worst-case scenario, such downturn could result in the Postal Service having insufficient liquidity to continue operations.”

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