The U.S. Postal Service is tightening spending across the organization to avoid running out of cash as early as 2027.

In a memo sent to employees on Tuesday, Postmaster General David Steiner announced immediate restrictions on nonessential spending, including hiring, travel, training, and more.

“As you are aware, we are currently experiencing a temporary cash-flow shortage that requires us to take decisive steps to manage our available resources responsibly,” Steiner wrote. “To protect core operations and ensure that we can continue meeting all essential obligations, we are implementing immediate restrictions on non-essential spending across all departments.”

The spending restrictions come as USPS faces ongoing financial challenges. Steiner told members of Congress earlier this year that the agency is expected to run out of cash in early 2027 if it continues paying its bills on time.

According to the memo, departments may be asked to provide summaries of cost-cutting measures and expected savings. The restrictions will remain in place until the agency's financial position improves.

“These actions, while challenging, are necessary to ensure we continue operating effectively and safeguarding the long-term health of our organization,” Steiner wrote.

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