November 20, 2025
Dear Alliance Members:
The Postal Service has filed its FY 2026 Integrated Financial Plan (IFP) at the Postal Regulatory Commission (PRC). https://prc.arkcase.com/api/prc-dockets/filing/downloadFile?fileId=249526&inline=true
Another significant loss projected for FY2026. The USPS is projecting another net loss of $8.1 billion and a controllable loss of $1.8 billion in FY 2026, according to the IFP. Its Financial Plan includes an estimated $2.4 billion growth in revenue and $1.2 billion increase in controllable expenses, as well as $8.1 billion in “non-controllable” expenses such as Workers Comp adjustment, CSRS, FERS and retiree health benefits top-up payment.
The IFP also includes a projected 6.6% total volume loss in FY2026, “primarily due to projected declines in First-Class Mail and USPS Marketing Mail volume.” The projected revenue increase of $2.4 billion includes an ambitious 9.4% increase from packages (the USPS in FY2025 saw a 5.7% decrease in package volumes.
The USPS is also forecasting 12 million reduction in workhours for FY2026, and is planning $3.4 billion capital commitments in facilities — the largest in several years and compared to $2.1 billion actual in FY2025.
USPS Liquidity. In the FY 2026 IFP, the USPS discusses its liquidity, stating that its “year-end cash and short-term investments, including restricted and non-current cash and short-term investments, was $14.0 billion as of September 30, 2025.” “We estimate our year-end 2026 total cash and short-term investments will be $3.4 billion,” the USPS stated, “assuming we make the estimated year-end lump sum payments of approximately $6.3 billion for CSRS, FERS, and RHB Top-Up.” [These are the various retirement systems for USPS employees, each of which have annual funding requirements from the USPS.]
In other words, if USPS doesn’t make its approximately $6.3 billion payment for CSRS, FERS, and RHB Top-Up, estimated cash and short-term investments will be approximately $9.7 billion ($3.4 billion + $6.3 billion) on September 30, 2026.
The question of when the USPS does not have enough liquidity to continue operations is a complex one with some differing opinions. From the information filed by USPS today, it does not look like it will be in FY2026 or FY2027, it could be a real possibility within a few years. It is critical that stakeholders and the USPS continue to advocate for meaningful legislative changes necessary to fund the nation’s postal system.
About the Alliance of Nonprofit Mailers
The Alliance of Nonprofit Mailers (ANM) is a Washington, D.C.-based 501(c)(4) membership organization established in 1989 to protect and advance the interests of nonprofit mailers.
Representing nearly 300 leading charities, associations, and nonprofit organizations, ANM advocates before Congress, the U.S. Postal Service, and the Postal Regulatory Commission to preserve affordable, reliable access to the U.S. Mail—ensuring that America’s nonprofits can continue to fulfill their vital missions.
Nonprofit Mail – Connecting with Americans for Good
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Sincerely,
Kathleen Siviter
Executive Director
Alliance of Nonprofit Mailers
2021 L Street, NW, Suite 101-248
Washington, DC 20036
Tel: 202-360-3776
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