(FinancialHealth.net) – It’s no secret the United States Postal Service (USPS) is in dire financial straits. In 2019, the Government Accountability Office (GOA) released a “high risk issue” update and noted the mail delivery service’s monetary condition was “deteriorating and unsustainable.” But the Trump administration may have found a way to save it.
In a July 29 statement, Treasury Secretary Steven Mnuchin announced a deal between his department and the USPS. The postal service is being offered a loan of up to $10 billion, if needed, to continue operating.
Treasury and United States Postal Service reach agreement on terms of CARES Act loan https://t.co/sGA1NND4rK
— Treasury Department (@USTreasury) July 29, 2020
The money will come from the CARES Act, which authorized the USPS to borrow the money if COVID-19 impacted its ability to pay for expenses without a loan. Mnuchin said he’ll be working with Postmaster General Louis DeJoy to establish a “sustainable business model… without shifting costs to taxpayers.”
Here’s hoping the USPS finds a solution to its financial problems soon. Millions of Americans, including disabled veterans, rely on US mail to have their medications delivered every month. But the agency cannot continue on as it has; it’s time for a change.
~Here’s to Your Financial Health!
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