U.s. Postal Service, Usps | featured news

The U.S. Postal Service's net loss widened to $5.2 billion during the April through June period, and the cash-strapped agency warned on Thursday that without help from the U.S. Congress it will face low cash and be unable to borrow money this fall.

The Postal Service is set this week to default on a giant payment, the latest blow illustrating Congress' slow progress toward fixing the agency's deep financial woes and one that could damage some customers' confidence.

The lack of a decision so far by House Republican to hold a vote on overhauling postal operations means lawmakers are once again likely to pass a short-term stop-gap measure to shore up postal finances, but not address longer-term structural and financial concerns, congressional aides and industry observers said Thursday.

The U.S. Postal Service will move ahead with a plan to shut or consolidate mail-processing facilities as part of its cost-cutting effort but will spread out the closings to maintain overnight delivery of local mail.

The U.S. Postal Service on Thursday reported a $3.2 billion loss for the first quarter of 2012, $1 billion more than during the same period last year.

The United States Postal Service stayed the sword hanging over thousands of rural post offices, opting instead to cut opening hours in a bid to stem devastating financial losses.

The U.S. Postal Service intends to announce Wednesday that it has found a way to save hundreds of rural post offices it had planned to close, in part by cutting hours of the postmasters and other workers that staff them, postal and congressional officials said.

The Senate is set to resume consideration Wednesday of a bill overhauling the U.S. Postal Service after agreeing to change the bill to set limits on when and how the agency could close small rural post offices.

The U.S. Postal Service has agreed to hold off on closing any more post offices or mail facilities until May 15, 2012, to allow Congress time to work on a plan to save the service.

Facing bankruptcy, the U.S. Postal Service is pushing ahead with unprecedented cuts to first-class mail next spring that will slow delivery and, for the first time in 40 years, eliminate the chance for stamped letters to arrive the next day.