Postmaster General Warns Of Default

Postmaster General Patrick Donahoe told the Senate Homeland Security and Governmental Affairs Committee on Tuesday that, without legislation by September 30th, the agency "will default on a mandated $5.5 billion payment to the Treasury. Donahoe says, with no congressional action, next August or September, the post office could run out of money to pay salaries and contractors, hampering its ability to operate. Committee Chairman Joe Lieberman, I-Conn., said: "We must act quickly. The U.S. Postal Service is not an 18th century relic, it is a 21st century national asset, but times are changing rapidly now and so too must the post office." Senator Susan Collins, R-Maine, noted that the post office supports a $1.1 trillion mailing industry employing more than 8 million people in direct mail, periodicals, catalogs, financial services and other businesses.