US Postal Service nears default


The U.S. Postal Service is under financial strain and warnings of a possible default, with Congress planning on holding a hearing Tuesday to address potential solutions. Among the proposed ideas to increase savings would be a drop in mail delivery from six to five days a week. In the event of a default, officials have stated there would be no interruption to mail delivery, employee payroll or payments to suppliers.

Among other sources of financial strain, the Postal Service may be unable to pay the $5.5 billion to its retiree health care trust fund, which some officials contend no longer reflects the diminished numbers of their workforce. Spokeswoman Yvonne Yoerger acknowledged the lack of a sustainable business model, but did not state if a shutdown is possible.


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