“Our situation is extremely serious,” Patrick R. Donahoe, the postmaster general, told The New York Times. “If Congress doesn’t act, we will default.”
USPS owes around $5.5 billion to pay for the health benefits for retirees and next year, it may not have the necessary funds to pay its current employees.
“Right now we think we can make it through until next summer most likely but then some hard choices will have to be made,” spokesperson Dave Partenheime told ABC News.
Partenheime added that the agency’s fiscal year ends at the end of September and by that time, it will have reached its borrowing limit, which is $15 billion.
“Something we desperately need is action from Congress to operate more like a business. That’s why we’re looking at other proposals to save us money,” he told the broadcasting network.
