Postal Service Could ‘Collapse’ After Coronavirus Outbreak

Breitbart reports, Postmaster General Megan Brennan told the House Oversight and Reform Committee that the U.S. Postal Service would run out of money by the end of September unless it received a financial bailout from the federal government.

The volume of Mail has fallen during the coronavirus crisis because of business closures. The USPS is bracing for a steep drop in revenue.

Huffington Post reported:

Postal workers remain on the front lines of the crisis, handling prescription drug shipments, lab test materials and medical supplies that are crucial to efforts to contain the virus. Mail-in voting has also allowed the democratic process to survive in the era of social distancing.

The Postal Service, which employs 650,000 people, is asking for $75 billion in aid from the government, and, according to the New York Times, another $14 billion to pay off debt related to a retirement benefits program ― a whopping $89 billion total.

“At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business,” Brennan said in the statement. “The Postal Service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover.”

“The USPS said the pandemic will increase its net operating loss by more than $22 billion over the next 18 months and by over $54 billion over the coming years,” Huffington Post reported.

Rep. Gerry Connolly, D-Va.,said congressional inaction would put the jobs of the Postal Service’s 630,000 employees at risk. Connolly tweeted criticism of Trump, who Connolly claims does not want to help the Postal Service.

“The Postal Service will collapse without urgent intervention, and it will happen soon,” Connolly tweeted:

The Postal Service did not get funding in the $2 trillion coronavirus legislation, but deserves help, its union president said in a statement last month.

“The USPS and the mailing industry it supports ($1.6 trillion in sales and 7.3 million private sector workers) is every bit as important as the aviation industry,” National Association of Letter Carriers President Fredric Rolando said in a statement.

About Catherine Smith

Catherine Smith is a newcomer to Washington D.C. She met, and married an American journalist and moved to D.C from the U.K. She graduated with a B.A in Graphic, Media and Communications and worked in design and retail in the U.K.

Photo: GettyImages

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