Postmaster Says He Can't Make The $5.5 Billion Payment

Postmaster General Patrick Donahoe has asked Congress for more financial flexibility to avoid default. At a hearing before the Senate Homeland Security and Governmental Affairs Committee, he said the USPS will be unable to make a $5.5 billion payment to the Treasury due Sept. 30. By next summer, it will be unable to pay employees and contractors. That would seriously impact its ability to keep delivering the mail, Donahoe said. USPS wants to stop pre-paying retiree health benefit costs but is not seeking federal funds. The White House promises to come up with it's own plan to restructure the Postal Service.