Post Office

Postal Service Hoping for Rescue from New Congress

Does agreement seem likely at this point?


The Congress that expired this week might have steered the nation away from the "fiscal cliff" of potentially devastating tax hikes and spending cuts, but it did not do much to save the U.S. Postal Service from its own fast-approaching cliff.

The cash-strapped mail carrier that lost almost $16 billion in the past year, ran into its legal borrowing limit and defaulted twice on required payments to the federal government, now turns to the newly sworn-in Congress for help.

The Postal Service loses $25 million every day, it says, as more Americans communicate by email and the massive payments for future retiree benefits take a toll.

It could run out of money in a little more than nine months, according to some estimates.