Quick Answer: Does The US Post Office Make A Profit?

Is the USPS going broke?

Poor financial situation: USPS’s overall financial condition is deteriorating and unsustainable.

USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018..

Who runs the post office?

Louis DeJoy is the 75th Postmaster General of the United States and the Chief Executive Officer of the world’s largest postal organization. Appointed by the Governors of the Postal Service, DeJoy began his tenure as Postmaster General in June 2020.

What is the USPS issue?

The 2020 United States Postal Service crisis is a series of events that have caused backlogs and delays in the delivery of mail by the United States Postal Service (USPS). The crisis stems primarily from changes implemented by Postmaster General Louis DeJoy shortly after taking office in June 2020.

Is the post office privately owned?

The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states.

Can the post office make a profit?

The USPS is making a profit. Yes, a profit! Since October 2012, the USPS has been operationally profitable to the tune of $2.9 billion. … The USPS took in almost $68 billion in revenue last year, up $3 billion from 2012.

How much money does the post office make a year?

WASHINGTON – The U.S. Postal Service reported operating revenue of $71.1 billion for fiscal year 2019 (October 1, 2018 – September 30, 2019), an increase of $514 million compared to the prior year.

How does the US Postal Service make money?

The Postal Service receives no direct taxpayer funds. It relies on revenues from stamps and other service fees. Although COVID-19 has choked off the USPS revenue in recent months, factors that arose well before coronavirus have contributed to the unsustainability of the Postal Service’s financial situation for years.

What happens if USPS runs out of money?

That is when the funding for the United States Post Office (USPS) runs out of money. … First, the USPS is required to do what no other government agency has to; by law, it must fully-fund its retirement and benefits accounts as it goes, requiring vast sums of capital over and above its operating income.

Is USPS really in debt?

USPS is $160 billion in debt.

When did the post office start losing money?

When Postal Service Losses Began Although the Postal Service lost money in the early part of the decade, in 2001 and 2003, the most significant losses came after the passage of a 2006 law requiring the agency to refund retiree health benefits.

Why is USPS losing money?

Here’s why the USPS is losing money. There are several key reasons that the USPS is hemorrhaging money. The first one that comes to mind is — you guessed it — the coronavirus pandemic. … As of May 2020, 5,000 USPS employees were reportedly subject to quarantine, and 60 had passed because of COVID-19.

What happens if USPS is privatized?

Members of Congress often express concern when major companies do not pay taxes. Yet the USPS is a $70 billion company that does not pay taxes. A privatized USPS would pay federal, state, and local taxes, which would put the USPS on a level playing field with other businesses.

Why is the US Post Office in financial trouble?

“While short-term action by Congress is critical, the Postal Service’s financial situation has long been unsustainable due to a combination of declining mail volumes and an inflexible statutory and regulatory structure that limits our ability to reduce costs and increase revenue,” the Postal Service said.

Who chooses the postmaster general?

The 9 governors elect the postmaster general, the chairman of the board as well as the USPS inspector general; the governors and the postmaster general elect the deputy postmaster general.