Key executives met recently to discuss the future of the U.S. Postal Services. While the agency has had another quarter of net losses, leaders have suggested that the USPS be “bold and creative” in saving the agency, as well as pay down the more than $10 billion in debt it owes to the U.S. Treasury. Democrats like Rep. Alexandria Ocasio-Cortez (D-NY) have offered the solution of “postal banking” where consumers and businesses could deposit their money at post offices. They could also receive loans from the agency.
Consumers can currently store and send money at post offices, but USPS money order revenue has declined approximately 30% in the past 10 years. In addition, current USPS financial services are experiencing revenue decline and solutions like loans would not make a difference. The U.S. Treasury stated in their task report on USPS finances that “expanding into sectors where the USPS does not have a comparative advantage or where balance sheet risk might arise, such as postal banking, should not be pursued.”