Amid cash shortfall, USPS halts pension contributions which will free up $2.5 billion

The Postal Service had previously warned Congress that without reforms to the pension funding and stamp prices, it could run out of cash in less than a year.

By Kevin Killough

Published: April 10, 2026 10:03am

A cash shortfall has led the U.S. Postal Service to suspend employer pension contributions starting Friday.

The decision impacts the Federal Employees Retirement System, Fox News reported.

The Postal Service had previously warned Congress it could run out of cash in less than a year unless various reforms, including changes to pension funding and stamp prices, were enacted.

The suspension will free up $2.5 billion in the current fiscal year.

The service says it generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.