August 9, 2012
The U.S. Postal Service’s net loss widened to $5.2 billion during the April through June period, and the cash-strapped agency warned on Thursday that without help from the U.S. Congress it will face low cash and be unable to borrow money this fall.
The Postal Service, which relies on the sale of stamps and other products rather than taxpayer funding, has been struggling for years as Americans increasingly communicate online and as payments for future retiree health benefits and other obligations drain its cash.
A week after its first-ever default on a legally required payment to the federal government, officials called on Congress to pass postal legislation that would overhaul the mail agency’s business model and offer some relief from its dire financial situation.