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Title page 1

Contents 2

Letter 4

Introduction 4

Background 6

What is USPS's mission? 12

What is USPS's universal service obligation? 14

What are the differences in postal delivery in rural and urban areas? 16

What is the Postal Service Reform Act of 2022 (PSRA)? 18

What is the Delivering for America plan and how is it changing USPS? 20

What are key stakeholders' views on Delivering for America? 23

What are USPS's primary sources of revenue? 26

What are USPS's key costs? 28

What has USPS done to cut costs as part of Delivering for America? 31

What limits USPS's ability to respond to declining mail volumes and increased costs? 33

How is USPS still operating after losing so much money? 35

How does USPS plan to pay for its unfunded liabilities and debt? 37

What is USPS doing to address postal crimes? 40

What could Congress do to help improve USPS's business model? 43

Agency Comments 46

Appendix I: Selected Legal Provisions Applicable to the U.S. Postal Service 47

Appendix II: Comments from the U.S. Postal Service 50

Appendix III: GAO Contacts and Staff Acknowledgments 51

Appendix IV: Additional Source Information for Images, Tables, or Figures 52

Tables 2

Table 1. Selected Legal Provisions Applicable to the U.S. Postal Service (USPS) 47

Figures 3

Figure 1. U.S. Postal Service's Employees Provide Postal Services 12

Figure 2. Examples of How the U.S. Postal Service (USPS) Provides Postal Services 14

Figure 3. Delivery and Collection Units in Rural and Urban Areas 16

Figure 4. Postal Service Reform Act of 2022 Established the Postal Service Health Benefits Program and Integrated the Program with Medicare 18

Figure 5. Changes to U.S. Postal Service (USPS) from Delivering for America Strategic Plan 20

Figure 6. United States Postal Service's (USPS) Key Stakeholders 23

Figure 7. The U.S. Postal Service's Revenues for Selected Products, Fiscal Years 2007 Through 2024 26

Figure 8. U.S. Postal Service's (USPS) Fiscal Year 2024 Operating Costs 28

Figure 9. U.S. Postal Service's (USPS) Next Generation Delivery Vehicle 29

Figure 10. Examples of U.S. Postal Service's (USPS) Delivering for America Cost-Cutting Efforts 31

Figure 11. The U.S. Postal Service's (USPS) Mail Revenue and Mail Volume, Fiscal Years 2007 Through 2024 33

Figure 12. U.S. Postal Service (USPS) Expenses and Revenue, Fiscal Years 2007 Through 2024 35

Figure 13. Total U.S. Postal Service's (USPS)Unfunded Liabilities and Debt, Fiscal Years 2007 Through 2024 37

Figure 14. Response to a Letter Carrier Robbery, from Incident to Case Closure 40

Figure 15. U.S. Postal Inspection Service Serious Crime Cases, Fiscal Years 2017 Through 2023 41

Figure 16. U.S. Capitol Building 43

Figure 17. Potential Congressional Options Most Often Mentioned by Stakeholders to Improve the U.S. Postal Service's (USPS) Financial Self-Sufficiency 45

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