Postmaster General Says USPS in Midst of Financial Disaster

Postmaster General Patrick R. Donahoe told a U.S. Senate committee today that the U.S. Postal Service is in the midst of a financial disaster and that its cash liquidity remains dangerously low.

Donahoe is seeking legislation that will enable the Postal Service to act with speed and flexibility in the mailing and shipping marketplace and help it close a $20 billion budget gap by 2017.

Donahoe told the Senate Committee on Homeland Security and Governmental Affairs that the Postal Service will default on another $5.6 billion retiree health benefits payment that is due Sept. 30.