The U.S. Postal Service, demonstrating the depth of its financial abyss, set up a possible showdown with Congress by saying it will stop mail service on Saturdays regardless of whether lawmakers approve.
The Postal Service has called for cutting a day of delivery since 2009, when it was coming off a $2.8 billion loss the previous year. After waiting three years for Congress to pass postal reform legislation, and seeing losses rise to $15.9 billion last year, Postmaster General Patrick Donahoe is relying on a new interpretation of the law to declare he doesn’t need Congress’s permission.
Cutting Saturday delivery doesn’t eliminate the need for Congress to act to cut more costs, said James O’Rourke, a University of Notre Dame management professor.
“This is the first salvo in what will be a long and repeated series of exchanges between the Postal Service and the Congress,” he said in an interview.