USPS Defaults On $5.5 Billion Payment To Treasury

Source: Eyder Peralta / NPR

For the first time ever, the United States Postal Service has defaulted on a payment to the Treasury.

The USPS warned of a default in a statement on Monday. It it would not make the $5.5 billion payment due today and that it would also default on a $5.6 billion payment due Sept. 30. Both of those payments are federally mandated and go toward prefunding retiree health benefits.

Basically, USPS said, this will not affect delivery or payments to employees. Benefits to retirees will also continue to flow.

The AP reports that the real problem here is that the USPS has proposed changes to its operation to handle its money problems, but they have to be approved by Congress, which, in an election year, is deadlocked on pretty much everything.

To read this article in its entirety visit NPR.