Congress, Usps | featured news

The U.S. Postal Service says it will delay plans to cut Saturday mail delivery because Congress isn't allowing the change. The Postal Service said in February that it planned to cut back in August to five-day-a-week deliveries for everything except packages, as a way to hold down losses.

The financially beleaguered Postal Service suffered a setback in its plan to end Saturday delivery of first-class mail as Congress on Thursday passed legislation requiring six-day delivery.

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 nearly bankrupt U.S. Postal Service is urging the House to quickly pass legislation to let it close low-revenue post offices and eliminate Saturday delivery.

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.

The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in.