The Postal Service on Friday estimated that a $10 billion loan guaranteed under the CARES Act would give the agency enough cash to operate through May 2021.
That loan buys the agency more time to work with Congress on a long-term legislative fix to its struggling business model. The House, meanwhile, already passed a significant piece of that legislative puzzle.
But the clock is ticking. The Postal Service continues to negotiate with the Treasury Department over reform conditions for the loan, and Congress remains divided on adding stopgap funding for the Postal Service in the next round of coronavirus spending.
While the coronavirus pandemic didn’t cause a drop in mail volume until late in the second quarter, the Postal Service still reported a $4.5 billion loss, more than twice what it lost in the same period last year.