The United States Postal Service celebrates its 250th anniversary on July 26. As the postal service approaches this major milestone, it continues to face significant financial challenges, including projections that it will lose nearly $7 billion in 2025.
In 1775, the Second Continental Congress appointed Benjamin Franklin as the first postmaster general, with the new courier system connecting the 13 colonies by speeding up deliveries.
‘Congress needs to act quickly because the agency will be bankrupt by 2028.’
As part of its 250th anniversary, the agency released a new “Eagle in Flight” symbol that will be featured throughout 2025 but will not replace the postal service’s original sonic eagle logo.
The USPS revealed two stamp issues, including an exclusive 32-page booklet and a pane of 20 stamps. It noted that it plans to release additional stamps for the 250th celebration.
The postal service is also hosting “anniversary events,” including a dedication ceremony and a festival at the Smithsonian National Postal Museum.
Postmaster General Doug Tulino stated, “The founders of our great nation saw the intrinsic need of postal services as the United States was born — even before the country itself was formed. Since that time, our universal mail system has strengthened the bonds of friendship, family, and community.”
“The Postal Service remains a great organization connecting our nation and helping power our economy,” Tulino continued. “We are proud to help set the stage for the 250th anniversary of the United States next year, and we look forward to continuing to serve the American public for another 250 years.”
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Photo by Joe Raedle/Getty Images
Financial turmoil
The USPS’ grand milestone may be overshadowed by reports that the agency has been hemorrhaging money, sparking concerns that taxpayers could be left to pick up the slack.
While an independent executive branch agency, the USPS is expected to function like a business, with its success relying on its performance and not on taxpayer funds. Costs to support its over 500,000 employees are supposed to be covered by its revenue from sales of stamps and other products and services.
Yet, the agency has suffered over 15 years of consecutive losses, including $9.5 billion in fiscal year 2024 and another $6.5 billion the previous year.
‘It has been just a tremendous loser for this country.’
Kevin Kosar, a senior fellow with the American Enterprise Institute, told Blaze News, “In 1970, Congress rebuilt the Postal Service into a self-funding government agency. That agency model worked until about 15 years ago. Mail volume has plunged about 45% since the year 2008. Yet, every year the cost of running the Postal Service goes up because there are more addresses to serve.”
“Congress needs to ask itself what do we want the Postal Service to be in the 21st century, and how can we pay for it? And Congress needs to act quickly because the agency will be bankrupt by 2028,” Kosar added.
While taxpayers do not generally fund the USPS, it has received billions of dollars in federal loans amid its ongoing struggle to compete with private sector rivals like UPS and FedEx.
In 2020, as part of the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, the Department of Treasury allowed the postal service to loan up to $10 billion for operating expenses.
Under former President Biden, the Postal Service Reform Act gave USPS a $107 billion bailout. In 2022, the Democrat-backed Inflation Reduction Act provided the postal service $3 billion to invest in its electric vehicle fleet.
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Photo by Kevin Dietsch/Getty Images
The USPS hit its maximum borrowing limit in September, reporting $15 billion in outstanding debt obligations to the Federal Financing Bank. The agency has sought to increase the limit, claiming that it has not been adjusted for inflation since it was set in the 1970s.
President Donald Trump has been critical of the postal service’s money management and lack of profitability, even previously stating that he would consider privatizing the agency.
During Commerce Secretary Howard Lutnick’s swearing-in ceremony in February, Trump indicated that Lutnick would be tasked with reviewing USPS finances. Trump suggested that he would consider placing the postal service under the Department of Commerce’s supervision while ensuring it remained a separate entity.
Trump stated, “We want to have a post office that works well and does not lose massive amounts of money.”
“It has been just a tremendous loser for this country,” he continued. “Whether it is a merger or just using some of the very talented people that we have elsewhere so it does not lose so much.”
While it is not yet clear how the Trump administration plans to streamline the USPS, the Government Executive reported that, according to a source, the Department of Government Efficiency has been visiting the postal service’s headquarters in recent months.
The USPS, the Department of Commerce, and the White House did not respond to a request for comment.
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