USPS to suspend pension contributions, seeks 4-cent stamp price hike

[BumRushDaShow]

Source: AP

Updated 3:44 PM EDT, April 9, 2026


The U.S. Postal Service said Thursday it has informed federal budget officials it will temporarily suspend its employer contributions to Federal Employees Retirement System annuities, allowing it to keep making payroll, paying suppliers and delivering the mail.

The Postal Service also wants to increase postage rates, including raising the price of a First-Class Mail Forever stamp from 78 cents to 82 cents. USPS filed notice Friday with regulators, who still need to approve the changes.

The step taken by the Postal Board of Governors to forgo the pension payments is meant to preserve cash and liquidity due to the Postal Service’s “ongoing, severe financial crisis,” Postal Service Chief Financial Officer Luke Grossmann said in an internal message to USPS employees. Officials have warned the USPS is on course to run out of cash by around February 2027.

Despite the suspension of employer contributions, effective Friday, current and future retirees will not be immediately impacted, Grossman said.

Read more: https://apnews.com/article/mail-usps-pensions-financial-crisis-da601e2b88f3420898757dbdb09fa518

[James48]

1. $4.25 gasoline doesn't help .

Trump causes damage to the Post Office.

It’s what the GOP does. Destroys everything great about America.

By the way- Mail is still a bargain at .82 cents. Now pay your employees retirement contribution.

[Old Crank]

15. Especially since Trump

Tossed out the half finished electrification plans.

[summer_in_TX]

17. The USPS is required to pre-fund employees retirement..

That is the source of their financial problems. No other agency has that requirement. It seems likely that is part of a Republican plan to ruin it and replace it with a for profit model for delivery of mail and packages.

The corporate world would like to have all the data the USPS has too.

[MichMan]

30. That ended 4 years ago when the Postal Service Reform Act was passed

The pre funding you are referring to was for retirement health care benefits.

When it was passed in 2006 it had overwhelming support. Passed by voice vote on the House and unanimous consent on the Senate.

[summer_in_TX]

37. Thanks for the info. I missed that.

Glad they did it.

Inflation and the cost of gas must be tough for the USPS.

[CousinIT]

2. It's being systematically destroyed in preparation for privatization or elimination.

This is a CHOICE - it has been DEFUNDED.

[MichMan]

11. Explain how it was defunded when it doesn't get any taxpayer subsidies?

Unlike many government agencies, the United States Postal Service (USPS) does not receive direct taxpayer funding for operating expenses. Government appropriations are limited to specific purposes, such as the Postal Service Health Benefits (PSHB) Program.

The Fiscal Year 2025 budget request for the PSHB Program includes a continuation of the 2024 appropriation increase. These funds are specifically allocated for the operation of the PSHB program, managed within the Office of Personnel Management’s Trust Fund Transfers.

A proposed legislative measure aims to secure future funding for the PSHB program’s eligibility determination and enrollment systems beyond FY 2025. These government appropriations are designated for postal retirees’ healthcare benefits and do not represent subsidies for the USPS’s general operating costs.

https://govfacts.org/government/federal/independent-executive/usps/how-usps-stays-afloat-funding-facts-simplified/

[Old Crank]

14. Government not paying for a constitutional requirement

Is essentially defunding it.

[MichMan]

16. You are correct; going all the way back to 1970

The Postal Reorganization Act was passed in 1970 in the House 360-24 & also in the Senate 57-7 and signed by President Nixon.

Besides making the USPS an independent agency, it also did allow for postal employees to be represented by unions and engage in collective bargaining.

[quakerboy]

28. 1970.

I didnt say defunded. But if you want to get into it.. I wasnt paying attention to politics or government at the time, but my understanding is that in 1970 they passed the postal reorganization act, defunding the tax dollars that went to usps as of 1981

It should be taxpayer funded. Postal service is in the constitution. It is not taxpayer funded. I find that rediculous.

At the very least, postal employee pensions should be covered by the government just like with any other federal employee.

[TexasBushwhacker]

3. Enough with the nickel and diming every year

Sending a letter coast to coast for the cost of a single stamp is STILL a bargain, considerably lower than other countries. Raise it to $1. Contribute to the pension fund. Adequately staff post offices.

The US has the cheapest postage among 31 countries.

https://www.google.com/search?q=first+class+postage+by+country&oq=first+class+postage+by+country&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIICAEQABgWGB4yCAgCEAAYFhgeMg0IAxAAGIYDGIAEGIoFMg0IBBAAGIYDGIAEGIoFMg0IBRAAGIYDGIAEGIoFMg0IBhAAGIYDGIAEGIoFMgoIBxAAGIAEGKIEMgoICBAAGIAEGKIEMgoICRAAGIAEGKIEMgoIChAAGIAEGKIE0gEJMTk5NzJqMGo0qAIOsAIB8QVAsHL5kGogLA&client=ms-android-google&sourceid=chrome-mobile&ie=UTF-8#lfId=ChxjMe

[quakerboy]

29. more or less

Go to a dollar. Use the money to upgrade services and facilities to be ahead of the curve. Open postal banking services. And make pensions a federal tax dollars funding deal like with any other federal employee.

[Jacson6]

4. I get 3 letters a week and have Amazon PKG deliver once a week.

In Denmark they got rid of the mail delivery service. I could see the USA having once a week delivery to each address. The Internet has replaced the mail delivery service for most correspondence. IMHO.

[BumRushDaShow]

6. "The Internet has replaced the mail delivery service for most correspondence. IMHO."

In Denmark they got rid of the mail delivery service.

Not in a gigantic country like the U.S., with huge rural areas and mountainous areas where there is little or no access to "internet" service or even cable or cell service.



That was an early focus of the term "RFD" = "Rural Free Delivery" - with the promise to deliver mail to every address in the U.S.

There was even the old "Andy Griffith Show" spinoff called "Mayberry R.F.D."

That's why the early push and fuss about Muskrat's "Starlink" being used for those areas. And then he went rogue.

[Dixiegrrrl]

9. Interestingly, in our rural area, Starlink is the only satellite service we could get.

Which is another reason why we dropped tv in favour of phone based internet.
Turned out to be a much better option than tv ever was.

[MichMan]

23. Postal carriers would be part time and only work one day a week?

What are they supposed to do the rest of the time? Door Dash?

[Bengus81]

5. STOP delivering mail on Saturdays and save billions

Who cares if junk shit hits the box on Sat or Monday??

[quakerboy]

21. Or just fund the USPS properly, and get rid of the trump appointees running it into the ground

Seeing as its a constitutional requirement, lets fund it properly and take away the wierd extra mandates meant to kill it.

Or do the postal bank thing, which id guess would pay for everything else without too much trouble.

[MichMan]

24. It was reckless for congress to stop funding it in 1970

Last edited Fri Apr 10, 2026, 08:45 AM - Edit history (1)

The Postal Reorganization Act was passed in 1970 in the House 360-24 & in the Senate 57-7

[twodogsbarking]

7. When I was a child the stamps were four cents.

[PatrickforB]

8. All under the expert hand of DeJoy! He has financial interests in privatization of the USPS dontcha know! n/t

[BumRushDaShow]

10. He left last year but the damage is done.

[MichMan]

12. DeJoy resigned a year ago n/t

[PatrickforB]

13. But the damage he did remains. I do stand corrected, but the USPS is still having DeJoy issues. n/t

[cstanleytech]

20. It wasn't just him it was the Republican as a whole as they've been conspiring for decades to kill the USPS.

[summer_in_TX]

18. Well before DeJoy was appointed, the requirement

to pre-fund all employees retirements had the USPS losing millions each year.

[BumRushDaShow]

25. Thankfully, they pre-fund bullshit was finally repealed

In 2022, Congress under Democrats killed the retiree healthcare "pre-funding" requirement and provided some money to close a funding gap over 10 years that helped to financially burden the USPS -

H.R.3076 - Postal Service Reform Act of 2022

[summer_in_TX]

38. Thanks. Don't know how I missed that.

But it's very good news.

[BumRushDaShow]

39. That year, we were in the middle of a horrific pandemic

Roe v Wade was overturned and Biden managed to get his huge climate-focussed bill passed... And then all the stuff with respect to J6 and the hearings.

So lots of things in play that year (and Democrats were able to stave off losing many members and/or a chamber, as typically happens during mid-years).

[cstanleytech]

19. Frankly I think a national gas and diesel tax specifically for funding the postal service only is needed.

[Maeve]

22. Time to stock up on Forever stamps again

I mail so few letters, a book of 20 lasts the year (mostly charitable contributions, which I could do online, but like the physicality of sending in envelopes)

[bucolic_frolic]

26. Surprised TPTB haven't decided structuring is involved.

Using the internet to pay bills is structuring payments to deprive USPS of income from stamps.

Slowing down to obey the speed limit is structuring your driving to avoid speeding tickets.

[OldBaldy1701E]

31. Umm...

[MichMan]

32. It may have been bad, but passed with overwhelming support by voice vote in the house & unanimous consent in the senate

Seemed to be very popular at the time. The vote was so lopsided, they didn't even have to record individual votes.

[OldBaldy1701E]

33. Congress has made other mistakes that they were all in on before.

It is a shame that they don't see the need to fix this one.

But, then again, the purpose is to cut off communications. That is why they are tanking the Postal Service.

It is also why they keep on trying to 'regulate' the internet. Not to 'protect the children'. but to destroy any community formation and ability to organize.

[BumRushDaShow]

36. "It is a shame that they don't see the need to fix this one."

It was repealed in 2022 but the damage was done.

H.R.3076 - Postal Service Reform Act of 2022

[OldBaldy1701E]

40. No offense, but if the 'damage was done', then the repeal did not 'fix' it.

Like I said, they need to 'fix' it, not just 'abandon' it.

[BumRushDaShow]

41. Future Democratic Congresses and administrations can

but we obviously don't have that at the moment.

During the Obama administration, the GOP blocked Obama appointees to the Postal Board, so for a number of years, it had no quorum and was basically neutered, and non-functional.

It was a Democratic Congress and administration that at least took the first steps to try to fix it under Biden.

[D. Spaulding]

35. You're right, it wasn't just a GOP idea and now it's been repealed, and yet

the Post Office just lost 9 billion last year, even without the requirement.

[D. Spaulding]

34. I retired from USPS two years ago; I don't think there's anyway the USPS is

going to be able to break even unless some drastic changes are made. We will just have to accept that they will have to be subsidized like most other government agencies, and that it is worth it to do so.