The U.S. Postal Service continues to hemorrhage money, with a loss of $2.2 billion in the most recent quarter. The national mail service said Tuesday that it expects to have a cash shortfall and reach its statutory borrowing limit by the time its fiscal year ends in September. That means the agency could be forced to default on some of its payments to the federal government.
Patrick Donahoe, the Postmaster General, said the service is still seeking changes to federal laws that would allow it to change its business model and potentially save enough money to avoid a default.
“The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens,” Donahoe said in a statement. More in CNN.