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The cash-strapped agency moves to save $2.5 billion as losses deepen and reform pressures grow.
The United States Postal Service has announced it will temporarily suspend contributions to its federal pension plan as it faces a deepening financial crisis. The move, effective April 2026, is aimed at conserving cash and stabilising operations.
The agency typically contributes around $200 million every two weeks to the Federal Employees Retirement System. By pausing these payments, USPS expects to save roughly $2.5 billion through September. Officials stated the decision will not have an immediate impact on current or future retirees.
The decision comes as USPS warns it could run out of cash as early as next year without major reforms. Declining first-class mail volumes, its most profitable segment, have driven long-term losses totalling more than $100 billion since 2007.
To offset losses, the agency is also pursuing price increases and broader restructuring efforts to maintain long-term viability.
