Video: Postmaster General blames Congress for $2B loss

The Postal Service needs help from Congress to stop the red ink, Postmaster General Patrick Donahoe told CNBC on Wednesday.

Despite an increase in package revenues and an emergency price hike that took effect in January, the agency said Monday it lost $2 billion in the second quarter.

The problem we face … is we are required by law to prefund retiree health benefits to the tune of about $5.7 billion a year. And we don’t have enough money to make that up right now. And that’s the bulk of the losses," Donahoe said in a "Squawk Box" interview.

Read more: Postmaster General blames Congress for $2B loss.

  • Margaret Parker

    WHAT! Say it isnt so!

  • Proudcarrier

    Who woke him up?

  • Wake up

    This is just a smoke screen so the PMG can take postal employees out of the fehbp and give us a “cheaper” postal run system. Then when they drive the USPS under there will be no benefits including retirees !!!!!

  • Gregg Grubbs

    Yes,the prefunding requirement needs to be eliminated.To bad all that money is in a general treasury fund and will NEVER be given back.The best hope is to recover some of the excess FERS payments;however that would be only a quick fix.This guy is shutting down processing plants and closing or reducing hours at thousands of post offices nationwide.At the same time he makes a deal with Staples!!Now he’s talking 5 day delivery again.This clown needs to replaced before it’s to late.

  • larry

    When is this idiot going to retire. Take your over paid salary and benefits and get the F*&CK OUT. We need some that as the attitude of half full instead of half empty;.

  • Zeus

    His contract should be up at the end of next year (if it was a 5-year contract), at which time he will most likely retire (we can all hope).