The Post Office May Shut Down This Winter Unless Congress Authorizes A Bailout
Sep. 4, 2011
“Neither rain, nor snow, nor sleet, nor hail shall keep the postmen from their appointed rounds.” But unless Congress steps in, bankruptcy will.
The New York Times reports that unless the House and Senate take drastic action in the next few months, one of the nation’s oldest institutions — which employs 574,000 Americans — may be forced to shut down.
A combination of labor costs and a declining number of packages and letters has the United States Postal Service running short on cash. The independent government agency will be unable to make a $5.5 billion payment to its employee healthcare plan by the Sept. 30 due date.
“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, told the Times. “If Congress doesn’t act, we will default.”